Business
China Vanke’s Unprecedented Interim Loss: A 38% Plunge in Home Sales Leads to First Deficit in Two Decades
China Vanke experiences its initial semi-annual loss in twenty years as housing sales plummet by 38%
The deficit was 9.4 per cent above the maximum of a range that the company had previously outlined in a cautionary statement last month.
The developer based in Shenzhen announced a net deficit of 9.85 billion yuan (US$1.4 billion) for the first half of 2024, marking a drastic shift from a gain of 9.87 billion yuan in the same timeframe in 2023. This information was disclosed during a late Friday filing with the Hong Kong stock exchange.
The business experienced its initial temporary deficit since 2003, which was 9.4 percent greater than the maximum estimate given in last month's profit alert.
Revenue for China Vanke dropped 29% year on year, hitting 142.8 billion yuan. This decline was primarily due to the discounts given to home purchasers, as part of the company's strategy to decrease stockpile, according to the firm.
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