Vanke makes major management reshuffles

An aerial view of China Vanke's headquaters in Yantian District. File photo

China Vanke, which has been facing liquidity risks for more than a year, today made five announcements related to its annual report forecast, senior management reshuffles and project transfers, indicating a major turnaround for the Shenzhen-based real estate developer.

China Vanke’s liquidity risk emerged at the end of 2023 and its performance forecast released today shows that the company suffered a net profit loss of approximately 45 billion yuan (US$6.19 billion) for 2024, which significantly expanded compared with the first three quarters of last year.

Despite efforts at self-rescue, including settling debts and initiating new projects, China Vanke continues to grapple with liquidity challenges.

The Shenzhen municipal and Guangdong provincial governments, along with relevant national departments, are providing substantial support to stabilize Vanke's operations and protect the legitimate rights and interests of homebuyers, creditors, and investors.

“A major reason for Vanke's large losses is market-related, but management factors also play a role,” said a research director at a real estate think tank.

China Vanke held a board meeting this afternoon and made a major senior management reshuffle. Xin Jie was elected as the chairman of the board, while Yu Liang resigned as chairman of Vanke's board but remains a board director. The board decided to appoint Yu, Li Feng, Hua Cui, and Li Gang as executive vice presidents, and Tian Jun as board secretary to replace Zhu Xu. Additionally, due to health reasons, Zhu Jiusheng resigned as a director, president and CEO of Vanke and no longer holds any position within the company.

New management appointments are expected to revitalize leadership and leverage extensive corporate experience to guide Vanke.

The support of China Vanke’s major shareholders, especially Shenzhen Metro Group, is critical, enabling resource coordination and enhancing Vanke’s financing capabilities in challenging times. Shenzhen Metro Group, the largest shareholder of China Vanke, said that it will leverage its advantages to support the newly formed management team in coordinating resource elements and mobilizing various forces to promote China Vanke's sustained, healthy, and stable development. 

Various government bodies and financial institutions have pledged to assist Vanke in addressing risks, ensuring stable financing, and revitalizing its assets. The recently appointed management is optimistic and confident in navigating the company toward a healthier operational future.

Xin said that with strong support from various parties and major shareholders, the new management team will actively implement a comprehensive plan and is confident in achieving stability in China Vanke's team, finance, and operations. The company has also made arrangements for debt repayment in the upcoming quarter.

In recent years, China Vanke's commercial housing delivery has made remarkable progress, with over 180,000 high-quality units delivered in 2024. The company’s sales area reached 18.107 million square meters, ranking first in the industry.  

The company is focusing on core operations, enhancing market competitiveness, and responding to evolving real estate development models.