After the Hong Kong stock market on Monday, April 29, China's leading real estate company Vanke disclosed its quarterly report. Affected by the industry environment, Vanke's performance in the first quarter was under pressure, but the diversified layout continued to deepen, the operating business performance was outstanding, and the balance and liability structure remained stable.

According to financial reports, Vanke Q1 achieved operating income of 61.59 billion yuan, a year-on-year decrease of 10%; net profit attributable to shareholders of listed companies was -360 million yuan, a year-on-year decrease of 125.0%, and profit of 1,446 billion yuan for the same period last year.

Vanke said that the decline in performance was mainly affected by the decline in the settlement scale of the real estate development business and the decline in gross margin.

Looking at various business lines, the real estate development business, which is the main source of revenue, had contract sales of 57.98 billion yuan in the first quarter, down 42.8% year on year; settlement amount was 46.67 billion yuan, down 13.8% year on year. Gross margin was 10.5%, down 6.7 percentage points year over year.

By the end of the reporting period, Vanke had an area of 56.757 million square meters under construction and a planned project of 3.69 million square meters. In the first quarter, Vanke achieved a planned area of 1.07 million square meters for new construction and resumption of work, completing 15.9% of the annual plan; achieving 2.658 million square meters of completed planned area, and 12.0% of the annual plan.

The rental housing business achieved revenue of 833 million yuan in the last quarter, an increase of 7.3% over the previous quarter. The number of newly expanded properties was 7,121, and the total number of long-term rental apartments opened was 179,500, and the occupancy rate was 93.9%. 108,200 units have been included in affordable rental housing.

The logistics and warehousing business achieved revenue of 970 million yuan last quarter, an increase of 1% over the previous year. Among them, high-standard warehouse revenue was 530 million yuan, down 5.4% year on year, and cold chain revenue (excluding supply chain business revenue) was 430 million yuan, up 10.1% year on year.

The commercial development and operation business achieved revenue of 2.38 billion yuan last quarter (including non-consolidated revenue, excluding revenue from asset-light management projects), an increase of 2.3% over the previous year. Of these, revenue from commercial projects managed by Printron was 1.43 billion yuan, an increase of 4.8% over the previous year.

Vanke also disclosed its current financial situation in its financial report. After deducting advance payments, Vanke's debt ratio is 64.9%, and the net debt ratio is 59.3%. Cash can cover interest-bearing liabilities due within one year. Additional financing costs for the first quarter were 3.33%.

During the reporting period, Vanke achieved a repayment of 4.2 billion yuan in bulk asset transactions, of which Shanghai Qibao Vanke Plaza achieved 50% equity transactions, with a transaction amount of 2,384 billion yuan.

Operational businesses achieve asset revitalization through REITs. The CICC Yinli Consumer Infrastructure Closed Infrastructure Securities Investment Fund (CICC Yinli Consumer REIT) will be listed on the Shenzhen Stock Exchange on April 30, with a net capital raised of 3.26 billion yuan. Shenzhen Railway Group raised 29.75% of the total share through strategic placement subscription funds.

Vanke also stated in the financial report that it is currently actively embracing financing instruments such as operating property loans, and fully integrating into the urban real estate financing coordination mechanism to promote the transformation of the financing model. Projects on the housing and construction financing coordination mechanism whitelist will be actively reported and fully reported.