3 6 Ke·2024-03-29 14:57Core Viewpoint - Vanke has faced significant challenges, including a decline in stock prices and the decision to cancel its dividend for 2023, marking a break from a 31-year tradition of continuous dividends [1][2] Financial Performance - In 2023, Vanke's net profit dropped to 12.16 billion yuan, a decrease of 46.4% from 22.69 billion yuan in 2022, indicating a near halving of profits [2] - The company's revenue for 2023 was 465.74 billion yuan, down 7.6% year-on-year, marking the first revenue decline in 20 years [2] - Vanke's contract sales amounted to 376.12 billion yuan in 2023, with a sales area of 24.66 million square meters, reflecting declines of 9.8% and 6.2% respectively [2] Market Conditions - The top 100 real estate companies in China saw a 51.6% year-on-year decline in sales in the first two months of 2024, with a monthly drop of 29.3% in February [2] - Vanke's stock price fell to an 8-year low of 11.07 yuan per share, with a current price of 9 yuan, down 2% [1] Dividend Policy - The board of Vanke decided to cancel the 2023 dividend, a difficult decision given the company's historical average dividend payout ratio of 33.3% over 31 years [1] Financing and Debt Management - Vanke's cash reserves stood at 99.81 billion yuan at the end of 2023, sufficient to cover its interest-bearing liabilities due within a year [4] - The company secured nearly 90 billion yuan in new financing in 2023, with 76.6 billion yuan from domestic sources at an average cost of 3.61% [4] - Vanke plans to reduce interest-bearing debt by over 100 billion yuan in the next two years [4] Rating Changes - Fitch downgraded Vanke's long-term foreign currency issuer default rating from 'BBB' to 'BB+' and placed it on a negative watch due to poor sales performance and capital market volatility [3] Management Response - Vanke's executives, including Chairman Yu Liang, voluntarily reduced their salaries to 10,000 yuan per month in response to the company's financial challenges [2] - The management acknowledged the need for a stronger crisis awareness and a more significant commitment to change [5]