On the afternoon of April 10, Vanke’s share price continued to fall, falling more than 5%, hitting a new low of more than 8 years. Since the beginning of this year, Vanke’s share price has fallen by 28%, and since the high point in March 2021, the cumulative decline has reached 75%.
At the same time, many bonds of Vanke fell, with "22005" falling more than 6%, "20008", "21002" and "20004" falling more than 4%, and "20006", "21004" and "22006" falling more than 3%.
Vanke, a Hong Kong stock company, fell at the same time, falling by more than 3% in the afternoon, and the cumulative decline since March 2021 was as high as 87%. It seems that the market’s confidence in Vanke is still insufficient.
Vanke’s double killing of shares and debts has not only aroused widespread concern of investors, but also reflected the severe challenges Vanke is currently facing.
Looking back nine years ago, the outbreak of the Baowan dispute once pushed up Vanke’s share price, reaching a maximum of 36.37 yuan. However, with the passage of time, Vanke returned to the starting point.
In the news, the news that Xiao Jin, general manager of Vanke Jinan, was taken away by the police for investigation undoubtedly brought pressure to Vanke. Although Vanke said that Xiao Jin’s investigation was due to personal reasons, the company was operating normally, and Jin Yabin would take over as the general manager of Jinan Company, this incident still had a big impact on Vanke’s share price.
Not long ago, an article published by Yantai Bairun Real Estate accused Vanke executives of tax evasion and misappropriation of funds. Although Vanke has denied this and said that it will take legal action to safeguard its legitimate rights and interests, these allegations still have an impact on Vanke.
Since the beginning of this year, Vanke has fallen into an eventful autumn. In March, the news that insurance funds forced debts attracted the attention of the market, and Vanke’s "debt crisis" was ignited. Although the crisis was eased to some extent and it was reported that 12 banks raised 80 billion yuan for Vanke, the financial situation of Vanke was still not optimistic.
Vanke’s annual report shows that in 2023, revenue decreased by 7.56%, net profit decreased by 46.39% and basic earnings per share decreased by 47.3%. Vanke said that the deep adjustment of the industry has brought tremendous pressure to the company’s operations. The decrease in net profit was mainly due to the decrease in settlement scale and gross settlement margin of development business, and some development projects were depreciated.
Faced with such a grim situation, Vanke’s management has also taken a series of measures. The chairman of the board of directors, the president and the chairman of the board of supervisors voluntarily received a monthly salary of 10,000 yuan before tax, breaking the 31-year dividend convention, not paying dividends, not sending bonus shares, and not converting capital reserve into share capital. These measures show the determination of Vanke management and confidence in the company’s future development.
Yu Liang said at the performance meeting that despite the uncertainty in the current market, Vanke’s management team will not lie flat, and will overcome the current difficulties by ensuring a safe bottom line and firmly reducing leverage. Vanke will focus on maintaining a positive cash flow at the business level at the sales end, and increase the safety mat through means such as bulk assets and equity transactions. In the next two years, Vanke plans to reduce interest-bearing debt by more than 100 billion yuan, fully integrate into the coordination mechanism of urban real estate financing, and promote the transformation of financing mode.
The annual report shows that the total liabilities are more than 1 trillion yuan, the interest-bearing liabilities exceed 320 billion yuan, and the annual net profit is 12.1 billion yuan. Last year, the comprehensive cost of domestic financing was 3.61%, and the interest expenditure last year was more than 14 billion yuan. In the first three months of this year, Vanke’s accumulated contracted sales amounted to 57.98 billion yuan, a year-on-year decrease of 42.81%. It is foreseeable that debt is still a dark cloud hanging over Vanke.
Vanke’s latest response shows that there are plans to repay each debt, and there will be corresponding measures to repay it.
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