Vanke Q1 revenue was 61.59 billion, with a net loss of 362 million, turning a year-on-year loss | Financial Report Insights

On Monday, April 29th, after the Hong Kong stock market closed, China's leading real estate company Vanke disclosed its first-quarter report. Due to the impact of the industry environment, Vanke's performance was under pressure in the first quarter, but its diversified layout continued to deepen, with impressive operational performance and a stable asset-liability structure.

The financial report shows that Vanke achieved operating income of 61.59 billion yuan in Q1, a year-on-year decrease of 10%; the net profit attributable to shareholders of the listed company was -360 million yuan, a year-on-year decrease of 125.0%, compared to a profit of 1.446 billion yuan in the same period last year.

Vanke stated that the decline in performance was mainly due to the decrease in the scale of real estate development business settlements and the decline in gross profit margin.

Looking at various business lines, the real estate development business, which is the main source of income, had a contract sales amount of 57.98 billion yuan in the first quarter, a year-on-year decrease of 42.8%; settlement amount of 46.67 billion yuan, a year-on-year decrease of 13.8%. The gross profit margin was 10.5%, a year-on-year decrease of 6.7 percentage points.

As of the end of the reporting period, Vanke had a construction area of 567.57 million square meters and planned projects of 31.69 million square meters. In the first quarter, Vanke achieved a new construction and resumed construction area of 1.70 million square meters, completing 15.9% of the annual plan; completed construction area of 2.658 million square meters, completing 12.0% of the annual plan.

The leasing residential business achieved revenue of 833 million yuan in the previous quarter, a year-on-year growth of 7.3%. 7,121 new housing units were developed, with a total of 179,500 long-term apartment units in operation, with an occupancy rate of 93.9%. 108,200 units have been included in affordable rental housing.

The logistics and warehousing business achieved revenue of 970 million yuan in the previous quarter, a year-on-year growth of 1%. Among them, the revenue of high-standard warehouses was 530 million yuan, a year-on-year decrease of 5.4%, and the revenue of cold chain (excluding supply chain business revenue) was 430 million yuan, a year-on-year growth of 10.1%.

The commercial development and operation business achieved operating income of 2.38 billion yuan in the previous quarter (including non-consolidated income, excluding light asset management project income), a year-on-year growth of 2.3%, with the operating income of commercial projects managed by Inditex amounting to 1.43 billion yuan, a year-on-year growth of 4.8%.

Vanke also disclosed its current financial situation in the financial report. After deducting advance receipts, Vanke's debt ratio was 64.9%, net debt ratio was 59.3%, and cash can cover interest-bearing debt due within one year. The new financing cost in the first quarter was 3.33%.

During the reporting period, Vanke received 4.2 billion yuan in proceeds from bulk asset transactions, including a 50% equity transaction of Shanghai Qibao Vanke Plaza, with a transaction amount of 2.384 billion yuan.

Operational business achieved asset activation through REITs. China Jinmao Inditex Consumer Infrastructure Closed-end Infrastructure Securities Investment Fund (China Jinmao Inditex Consumer REIT) will be listed on the Shenzhen Stock Exchange on April 30th, raising a net amount of 3.26 billion yuan. Shenzhen Metro Group subscribed for 29.75% of the total fund raised through strategic placement Vanke also stated in its financial report that it is currently actively embracing financing tools such as operating property loans, fully integrating into the urban real estate financing coordination mechanism, promoting the transformation of financing models, and actively applying for projects on the white list of the housing and construction financing coordination mechanism.

Today, there are market rumors of a directional change in real estate policies, leading to a collective surge in real estate stocks. Vanke A shares rose by the daily limit with an increase of 10.04%. This is the first rare daily limit increase for Vanke A in the past year and a half, bringing its market value back above 90 billion yuan. Its Hong Kong-listed shares also surged by 18.99%, marking the largest single-day increase in seven and a half years.

Vanke's multiple bonds also saw strong gains. Among them, "22 Vanke 04", "21 Vanke 04", and "22 Vanke 06" all rose by over 6%