Developer China Vanke forecasts record US$6.2 billion loss amid management reshuffle
China Vanke, once a leading Chinese developer, is forecasting a record US$6.2 billion net loss for 2024 amidst financial challenges. The company is struggling with US$4.9 billion in debt maturing this year, prompting it to reshuffle its management. A new chairman with a state-linked background has been appointed, aiming to restore confidence after recent bond sell-offs and ratings downgrades from Fitch Ratings and S&P Global. This management change has positively influenced the market, as evidenced by the rise in Vanke's bond prices.
Yu Liang stepped down as chairman for "work adjustment reasons" but will remain as a director, while Xin Jie, who also chairs Vanke's largest shareholder Shenzhen Metro Group, takes over. The support from the Shenzhen State-owned Assets Supervision and Administration Commission (SSASAC) indicates strong backing, with SSASAC's vast assets suggesting they can stabilize Vanke. Despite the management overhaul, Vanke projects a significant financial downturn due to decreased sales, profit margins, and impairments, transitioning from a net profit in 2023 to a substantial loss in 2024.
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China Vanke, once a leading Chinese developer, is forecasting a record US$6.2 billion net loss for 2024 amidst financial challenges. The company is struggling with US$4.9 billion in debt maturing this year, prompting it to reshuffle its management. A new chairman with a state-linked background has been appointed, aiming to restore confidence after recent bond sell-offs and ratings downgrades from Fitch Ratings and S&P Global. This management change has positively influenced the market, as evidenced by the rise in Vanke's bond prices.
Yu Liang stepped down as chairman for "work adjustment reasons" but will remain as a director, while Xin Jie, who also chairs Vanke's largest shareholder Shenzhen Metro Group, takes over. The support from the Shenzhen State-owned Assets Supervision and Administration Commission (SSASAC) indicates strong backing, with SSASAC's vast assets suggesting they can stabilize Vanke. Despite the management overhaul, Vanke projects a significant financial downturn due to decreased sales, profit margins, and impairments, transitioning from a net profit in 2023 to a substantial loss in 2024.
via SCMP Full Text Feed
