China Vanke’s 2021 Net Profit Fell

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By Yi Wei Wong

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China Vanke Co. reported that net profit fell in 2021, pressured by declines in its gross profit margin.

The Chinese developer said late Wednesday that net profit fell to 22.53 billion yuan ($3.55 billion), compared with CNY41.52 billion in 2020.

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Revenue rose to CNY452.80 billion from CNY419.11 billion.

The company said its overall gross profit margin fell 7.4 percentage points to 21.8%, which it attributed to the competitiveness of the land acquisition market.

China Vanke acknowledged that China’s real estate market faces significant challenges, though it expects demand for housing to remain firm.

“The fact that two important market drivers, rapid industrialization and urbanization, are coming to an end, does not mean that the demand for housing will disappear,” the company said.

Due to headwinds pressing China’s property market, China Vanke said it has decided to tighten its investment management practices in 2022 and will develop its operations and services businesses.

The company also said it plans to raise between CNY2.0 billion and CNY2.5 billion through a share buyback priced at CNY18.27 a share.

Write to Yi Wei Wong at [email protected]

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Credit: www.marketwatch.com /

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