China Vanke Co.’s profit tumbled more than analysts expected last year and it vowed to slash debt by almost $14 billion, as the embattled developer tries to stave off default amid a protracted housing crisis, reports Caixin. Net income attributable to shareholders shrank 46% to RMB 12.2 billion ($1.69 billion) for 2023, the Shenzhen-based company said in an exchange filing late Thursday. The drop dwarfs a 14% slide expected by analysts surveyed by Bloomberg.
The giant builder said it aims to cut debt by more than RMB 100 billion in the next two years as it “firmly deleverages.” Vanke didn’t propose a cash or stock dividend for 2023, skipping a full-year payout for the first time since its 1991 listing in the China market.
The yearslong slump in China’s real estate sector is weighing on some of the largest builders that have avoided default so far. Vanke, whose major shareholder is a state-owned firm in Shenzhen, has been seen as a bellwether for government support of major property developers after rivals including China Evergrande Group defaulted.