Vanke’s No. 1 investor installs chairman in ailing developer to guide its way out of debt
New chairman’s state-linked background sends positive signals, but company’s fate still depends on a sales recovery, an analyst says
Yu Liang resigned as chairman due to “work adjustment reasons”, but would remain with the company as a director, Vanke said in a filing with the Hong Kong stock exchange on Monday. The new chairman Xin Jie is also chairman of state-owned Shenzhen Metro Group, the developer’s largest shareholder.
With assets of more than 5 trillion yuan (US$689 billion), the Shenzhen State-owned Assets Supervision and Administration Commission (SSASAC) has “the ability, strength and enough ‘bullets’ to support Shenzhen Metro Group to promote a stable development of Vanke through all possible means”, an SSASAC representative said on Monday, according to state-owned newspaper Nanfang Daily.
The asking price of Vanke’s bond maturing in 2025 advanced 11 per cent, while the asking price of its bond maturing in 2029 rose 9 per cent, according to Dealing Matrix, a bond information provider.
Vanke said in a separate filing that it expects a net loss of 45 billion yuan for 2024, down from a 12 billion yuan net profit in 2023, citing falling sales and profit margins, provisions for credit and inventory impairments, and losses in bulk asset and equity transactions.
Earlier, the company reported that total sales plunged 34.6 per cent year on year in 2024 to 246 billion yuan.