China developer Vanke’s profit slides 19% amid home-market woes

CHINA Vanke Co, the country’s second-largest developer by sales, reported lower profit in the first half, underscoring the reality that even developers with partial state support aren’t immune to an unprecedented housing slump. 

Net income declined 19 per cent to 9.9 billion yuan (S$1.9 billion) in the six months ended Jun 30, the Shenzhen-based company said in an exchange filing Wednesday (Aug 30). That compares with largely flat growth for 2022. 

Backed by a local state-owned firm, Vanke has until now been weathering the two-year property crisis that has weakened the economy and left competitor Country Garden Holdings Co at risk of becoming the latest private-sector developer to default. A growing number of state-owned builders have warned of half-year losses, in a sign that the crisis is spreading to companies with government support. BLOOMBERG