China Vanke Co., Ltd. (HKEX: 02202) has unveiled its interim results for the first half of 2026, recording revenue of approximately RMB70.17 billion. The company posted a gross profit of around RMB1.63 billion, with a loss attributable to shareholders of the company amounting to roughly RMB14.95 billion.
Breaking down the revenue streams, the property development and related asset operation business contributed RMB48.70 billion, representing 69.4% of total revenue, while the property management services segment generated RMB18.46 billion, accounting for 26.3%.
The company attributed the reporting period's loss to several key factors: a marked reduction in the settlement scale of property development projects with gross margins remaining at depressed levels; additional asset impairment provisions driven by evolving industry, market, and operating conditions; and losses from certain operational businesses and select non-core financial investments under the cost method after accounting for depreciation and amortisation.
During the period, with robust backing from various stakeholders and its major shareholder, the group advanced its restructuring and risk mitigation initiatives, achieving phased progress in maintaining operational stability and resolving debt risks. The development business successfully completed the delivery of 23,000 homes on schedule and with assured quality, enhancing its delivery reputation through the "City Xing Delivery" initiative. The company also maintained an active sales approach, generating RMB35.80 billion in sales value, and implemented multiple measures to revitalise existing projects, cumulatively adding and optimising capacity worth RMB15.58 billion. A city-focused strategy was launched, with tailored development plans for each city in its coverage, progressively concentrating resources toward core urban markets.
The operation and service business demonstrated steady improvement in operational quality, achieving total revenue of RMB28.85 billion on a full-calibre basis, a year-on-year increase of 1.6%. Additionally, the company continued to reduce various expense items, with comparable expenses declining for eight consecutive quarters, including a 13% year-on-year reduction in administrative costs.
On the financing front, the company secured support from various financial institutions, maintaining overall stability in existing financing. During the first half, new financing and refinancing within the consolidated reporting scope totalled RMB4.08 billion (excluding shareholder loans), with the comprehensive financing cost for existing debt standing at 2.86%. In terms of shareholder support, major shareholder Shenzhen Metro Group has provided approximately RMB4.52 billion in shareholder loans since the beginning of the year, with borrowing rates and collateral ratios more favourable than market norms.
As of the disclosure date of this report, the company has successfully mitigated risks on 10 public bonds through partial repayments and associated extensions, involving a combined principal amount of approximately RMB18.1 billion. Since 2025, the company has smoothly completed principal repayments or risk resolution on approximately RMB48.5 billion of maturing public debt.