On January 9, China's real estate giant Vanke responded regarding its public debt maturing in 2025, stating that the company will spare no effort in repaying the debt. Vanke will continue to raise funds from various aspects, including operations and financing. The company stated it would address the debt repayment through measures such as actively collecting sales revenue, pushing forward large transactions, accelerating the exit from non-core businesses, and continuously striving for financing resources.
According to incomplete statistics, in the first quarter of 2025, Vanke will have four domestic bonds maturing, with an unpaid amount of approximately 9 billion yuan. In the second quarter, two offshore bonds will mature (VNKRLE 3.15 05/12/25, VNKRLE 3.55 06/08/25), with an outstanding balance of approximately 3.6 billion yuan.
From a policy perspective, with the political bureau meeting on September 26 of last year signaling “the need to promote the stabilization of the real estate market,” the strongest message for market stability was released. Meanwhile, relevant departments and local governments have actively implemented policies. Since the fourth quarter of 2024, the market in core cities has seen a clear rise.
According to data from the National Bureau of Statistics, since October 2024, the real estate market has shown a general recovery in transactions. In November, the sales of new commercial housing further improved, with both sales area and sales value showing positive growth, increasing by 10.2% and 6.8%, respectively.
From Vanke's perspective, in the third quarter of 2024, the company maintained positive operating cash flow, with collections exceeding 180 billion yuan from January to September, and a repayment rate of over 100%. The debt structure continued to improve, with the proportion of overseas debt reduced to 16.1%, and the weighted average debt maturity extended to 5.4 years. In 2024, Vanke achieved new financing and refinancing of over 77 billion yuan, with operating property loans exceeding 25 billion yuan. At the same time, financing costs remained low, with the comprehensive cost of new financing at 3.58%.
Regarding large asset transactions, Vanke signed deals worth over 20 billion yuan in the first three quarters of 2024.
From the sales data perspective, in December 2024, Vanke achieved a contracted sales area of 1.727 million square meters, up 5.8% month-on-month; the contracted sales value was 23.34 billion yuan, up 15.9% month-on-month. For the whole year, Vanke's total contracted sales area reached 18.107 million square meters, with a contracted sales value of 246.02 billion yuan. According to the "2024 China Real Estate Sales Top 100 Companies Ranking," Vanke ranked fifth in annual sales, following Poly Developments, China Overseas Land, Greentown China, and China Resources Land. In terms of sales area, Vanke remained the leader.
