Struggling property developer China Vanke Co posted a 45.7% drop in net profit attributable to shareholders to RMB 22.5 billion ($3.5 billion) for 2021, reports Caixin. At a press conference Wednesday, Vanke Chairman Yu Liang accredited the decline to a lower gross profit margin and falling returns from some investments. Revenue of the Guangdong province-based company rose 8% to RMB 452.8 billion last year.
To lift investors’ confidence, Vanke plans to buy back some of its Chinese mainland-traded A-shares using RMB 2 billion to RMB 2.5 billion over the next three months.
China’s real estate sector has faced a liquidity crunch since late last year as regulatory curbs on borrowing have left many private developers struggling to pay back their debts, weakening confidence among investors and homebuyers and driving a slump in sales.