Vanke's Q1 loss widens 16.3 times to 6.25 billion yuan

China Vanke’s (2202) first quarter net loss widened by 16.3 times year-on-year to 6.25 billion yuan (HK$6.67 billion), mainly due to the decrease in the settlement scale and gross profit margin of the development business.

In the quarter, the developer’s profit margin slumped by 4.7 percentage points to 6.1 percent, according to a filing on Tuesday.

Revenue for the period plunged by 38.3 percent to 37.99 billion yuan, of which, the property development business contributed 22.8 billion yuan, representing a year-on-year decrease of 51.1 percent. 

Sales from the operating and property service business also decreased by 12.1 percent to 12.27 billion yuan. 

Contracted sales dropped by nearly 40 percent to 34.92 billion yuan in the quarter despite a 35.1 percent decline in sales area to 2.54 million square meters. 

It held 75.5 billion yuan of cash on hand as of the end of March and the total interest-bearing liabilities amounted to 365.87 billion yuan. 

It received new financing and refinancing totaling 13.9 billion yuan in the first quarter with the composite cost of new financing decreased by 21 basis points to 3.39 percent, the filing said.
Staff reporter