by Wang Yuhan
China’s real estate giant Vanke announced sweeping leadership changes on January 27 as it grapples with a projected net loss of 45 billion yuan (US$6.7 billion) for 2024, the largest in its history. Excluding non-recurring items, the adjusted net loss stands at 41 billion yuan, with basic earnings per share down 3.79 yuan.
The losses are attributed to sharply reduced profit margins in property development, provisions for credit impairment and inventory write-downs, and asset sales at values below book cost. Much of the shortfall is tied to high-cost projects initiated before 2022, which fell short of expectations.
Despite the challenges, Vanke delivered 180,000 housing units last year, led the industry in sales area with 246 billion yuan in revenue, and generated over 10 billion yuan in cash by accelerating the sale of old inventory.
In a major leadership reshuffle, Xin Jie was named Chairman of the Board, replacing Yu Liang, who will stay on as a director and take on the role of Executive Vice President, focusing on operational improvement and strategic initiatives. Zhu Jiusheng, citing health reasons, stepped down from his roles as CEO, President, and Board Member, and will no longer hold any position at Vanke.
Tian Jun was appointed Board Secretary, while Yu Liang, Li Feng, Hua Cui, and Li Gang were named as Executive Vice Presidents. Most of the new appointees have a professional background linked to Shenzhen's state-owned entities, highlighting the influence of state-backed capital in Vanke’s restructuring.
Vanke expressed confidence in the real estate market’s gradual recovery and pledged to focus on streamlining operations, mitigating risks, and prioritizing its core business to navigate challenges ahead.
