# China Vanke (000002.SHE)

Canonical: https://gigainvestors.com/s/000002.SHE

Analysis as of: 2026-10-16T07:36:52.553Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 3.60 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 0.95×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.21×

- FY2018: 0.23×

- FY2019: 0.21×

- FY2020: 0.19×

- FY2021: 0.12×

- FY2022: 0.10×

- FY2023: 0.06×

- FY2024: -0.13×

- FY2025: -0.01×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 16.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 17.5%

- ROIC, second-lowest year: -0.4%

- Typical minus recent gross margin: 16.1 pp

- Typical gross margin (annual median): 25.5%

- Recent gross margin (lower of latest and 3-year median): 9.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 10.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.6%

- FY2017: 36.0%

- FY2018: 31.6%

- FY2019: 26.2%

- FY2020: 23.4%

- FY2021: 11.6%

- FY2022: 9.9%

- FY2023: 4.7%

- FY2024: -10.5%

- FY2025: -0.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -85B

- Net income, five-year total: CNY -81B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -10.7 pp

- Working capital / revenue, change between three-year averages: -77.9 pp

- Working capital / revenue, final three-year average: 148.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: CNY 18B

- FY2022: CNY 20B

- FY2023: CNY 10B

- FY2024: CNY -49B

- FY2025: CNY -84B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 31.6% vs -0.4%

- Per-share earnings: 1.89 to -4.17 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: CNY -173B

- Cumulative retained earnings: CNY -106B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: CNY -6.06

- Per-share value, starting three-year median: CNY 1.89

- Per-share value, ending three-year median: CNY -4.17

- Buybacks concentrated in cheaper years (correlation): 0.03

- Average buyback yield: 5.7%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 16B

- Cumulative net income, 10 years: CNY 83B

- ROIC, first three-year median: 31.6%

- ROIC, last three-year median: -0.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.89

- FY2017: CNY 2.53

- FY2018: CNY 3.06

- FY2019: CNY 3.44

- FY2020: CNY 3.56

- FY2021: CNY 1.94

- FY2022: CNY 1.96

- FY2023: CNY 1.03

- FY2024: CNY -4.17

- FY2025: CNY -7.45

### accounting: pass

- Sloan accruals: -8.6%

- Receivables to sales index (DSRI): 0.06×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.2%

- FY2017: -4.7%

- FY2018: 0.0%

- FY2019: -0.4%

- FY2020: -0.6%

- FY2021: 0.9%

- FY2022: 1.1%

- FY2023: 0.5%

- FY2024: -4.1%

- FY2025: -8.6%

## Holders

## Price story

Down 82% since Jun 2022 · sales -32%

Story as of 2026-10-16T10:00:08.273Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -32%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 240B 

- FY2017: CNY 243B 

- FY2018: CNY 298B 

- FY2019: CNY 368B 

- FY2020: CNY 419B 

- FY2021: CNY 453B 

- FY2022: CNY 504B 

- FY2023: CNY 466B 

- FY2024: CNY 343B 

- FY2025: CNY 233B 

### Gross margin · FY2025

gross margin 9.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.4% 

- FY2017: 34.1% 

- FY2018: 37.5% 

- FY2019: 36.2% 

- FY2020: 29.2% 

- FY2021: 21.8% 

- FY2022: 19.6% 

- FY2023: 15.2% 

- FY2024: 10.2% 

- FY2025: 9.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in real estate development; annual sales are CNY 233.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2025: revenue 233432768960.43; grossProfit 22085477189.55; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000002.SHE: China Vanke Co., Ltd., together with its subsidiaries, engages in property development, operation, and management in Mainland China, Hong Kong, the United States, the United Kingdom, and internationally. The company is involved in the development and sale of residential properties; construction contracts; commercial property operation and asset management; other related services; community residential and consumption services; enterprise and city space services; artificial intelligence; IoT; and business process as a service solution. It also engages in the provision of property services; rental housing; real estate investment and development; hotel and vacation assets; pig farming; logistics and warehousing; and retail property development and operation. The company was incorporated in May 30th, 1984 and is headquartered in Shenzhen, China.

### Why customers stay

Margins ranged from 9.5% to 15.2% during 2023–25; it earns 17.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2023: grossProfit / revenue = 15.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2024: grossProfit / revenue = 10.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2025: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); 10-year return on capital observations [[2016,0.23558031464906584],[2017,0.35959072527625935],[2018,0.3160386061188514],[2019,0.2621411757016159],[2020,0.2340852319156274],[2021,0.11645884669916663],[2022,0.09918152985319169],[2023,0.04736004503629478],[2024,-0.10462326480897002],[2025,-0.004394832744095771]]; median 0.17527203930739702. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2016: growth capex 998154000; upkeep 1148632000; owner earnings 21022606000. Growth capex / owner earnings = 0.04748003173345874.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2017: growth capex 69650698.68753338; upkeep 2290830301.3124666; owner earnings 27690022698.687534. Growth capex / owner earnings = 0.0025153716717911797.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2018: growth capex 2715619825.7051086; upkeep 3181129174.2948914; owner earnings 33513458825.70511. Growth capex / owner earnings = 0.08103072380049907.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2019: growth capex 0; upkeep 6244192000; owner earnings 38933497000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2020: growth capex 223392000; upkeep 6984906000; owner earnings 41515545000. Growth capex / owner earnings = 0.005380924181532484.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2021: growth capex 1514588000; upkeep 8063320000; owner earnings 17662104580.306. Growth capex / owner earnings = 0.08575354047494602.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2022: growth capex 3526744000; upkeep 9299962000; owner earnings 20022095322.090393. Growth capex / owner earnings = 0.17614260362195663.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); FY2023: growth capex 0; upkeep 8444871000; owner earnings 10204700085.870932. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); Dividend observations: [[2016,12716662000],[2017,15932486000],[2018,23899187000],[2019,25675425000],[2020,27241997000],[2021,26852126000],[2022,23573199000],[2023,22130920000],[2024,13287758000],[2025,12565812035.55]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 35% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000002.SHE SharesStats.PercentInsiders = 34.964 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.553Z); Closing price 3.6 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 19.63802440462166; price multiple 0.18331782901505955. FY2025 cash earnings/share -7.090003526080668. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 24.92 per share

- 2016-11: CNY 26.98 per share

- 2016-12: CNY 20.55 per share

- 2017-01: CNY 20.68 per share

- 2017-02: CNY 20.53 per share

- 2017-03: CNY 20.58 per share

- 2017-04: CNY 19.50 per share

- 2017-05: CNY 21.26 per share

- 2017-06: CNY 24.97 per share

- 2017-07: CNY 23.37 per share

- 2017-08: CNY 23.23 per share

- 2017-09: CNY 26.25 per share

- 2017-10: CNY 28.96 per share

- 2017-11: CNY 31.22 per share

- 2017-12: CNY 31.06 per share

- 2018-01: CNY 37.56 per share

- 2018-02: CNY 32.70 per share

- 2018-03: CNY 33.29 per share

- 2018-04: CNY 28.40 per share

- 2018-05: CNY 25.59 per share

- 2018-06: CNY 24.60 per share

- 2018-07: CNY 23.32 per share

- 2018-08: CNY 24.05 per share

- 2018-09: CNY 24.30 per share

- 2018-10: CNY 24.23 per share

- 2018-11: CNY 25.44 per share

- 2018-12: CNY 23.82 per share

- 2019-01: CNY 27.75 per share

- 2019-02: CNY 27.99 per share

- 2019-03: CNY 30.72 per share

- 2019-04: CNY 29.08 per share

- 2019-05: CNY 26.70 per share

- 2019-06: CNY 27.81 per share

- 2019-07: CNY 28.76 per share

- 2019-08: CNY 25.80 per share

- 2019-09: CNY 25.90 per share

- 2019-10: CNY 26.53 per share

- 2019-11: CNY 27.70 per share

- 2019-12: CNY 32.18 per share

- 2020-01: CNY 28.99 per share

- 2020-02: CNY 29.59 per share

- 2020-03: CNY 25.63 per share

- 2020-04: CNY 26.81 per share

- 2020-05: CNY 25.73 per share

- 2020-06: CNY 26.16 per share

- 2020-07: CNY 26.84 per share

- 2020-08: CNY 27.20 per share

- 2020-09: CNY 28.00 per share

- 2020-10: CNY 27.49 per share

- 2020-11: CNY 30.70 per share

- 2020-12: CNY 28.70 per share

- 2021-01: CNY 27.79 per share

- 2021-02: CNY 33.10 per share

- 2021-03: CNY 30.00 per share

- 2021-04: CNY 28.17 per share

- 2021-05: CNY 26.70 per share

- 2021-06: CNY 23.81 per share

- 2021-07: CNY 20.66 per share

- 2021-08: CNY 19.80 per share

- 2021-09: CNY 21.31 per share

- 2021-10: CNY 18.21 per share

- 2021-11: CNY 18.26 per share

- 2021-12: CNY 19.76 per share

- 2022-01: CNY 20.33 per share

- 2022-02: CNY 19.20 per share

- 2022-03: CNY 19.15 per share

- 2022-04: CNY 19.38 per share

- 2022-05: CNY 17.81 per share

- 2022-06: CNY 20.50 per share

- 2022-07: CNY 17.21 per share

- 2022-08: CNY 16.63 per share

- 2022-09: CNY 17.83 per share

- 2022-10: CNY 13.52 per share

- 2022-11: CNY 18.65 per share

- 2022-12: CNY 18.20 per share

- 2023-01: CNY 18.29 per share

- 2023-02: CNY 17.14 per share

- 2023-03: CNY 15.24 per share

- 2023-04: CNY 15.14 per share

- 2023-05: CNY 14.24 per share

- 2023-06: CNY 14.02 per share

- 2023-07: CNY 15.25 per share

- 2023-08: CNY 13.64 per share

- 2023-09: CNY 13.08 per share

- 2023-10: CNY 11.33 per share

- 2023-11: CNY 11.44 per share

- 2023-12: CNY 10.46 per share

- 2024-01: CNY 9.60 per share

- 2024-02: CNY 10.04 per share

- 2024-03: CNY 9.00 per share

- 2024-04: CNY 7.41 per share

- 2024-05: CNY 8.25 per share

- 2024-06: CNY 6.93 per share

- 2024-07: CNY 7.09 per share

- 2024-08: CNY 6.76 per share

- 2024-09: CNY 9.72 per share

- 2024-10: CNY 9.28 per share

- 2024-11: CNY 8.60 per share

- 2024-12: CNY 7.26 per share

- 2025-01: CNY 7.27 per share

- 2025-02: CNY 7.75 per share

- 2025-03: CNY 7.05 per share

- 2025-04: CNY 6.81 per share

- 2025-05: CNY 6.64 per share

- 2025-06: CNY 6.42 per share

- 2025-07: CNY 6.44 per share

- 2025-08: CNY 6.79 per share

- 2025-09: CNY 6.89 per share

- 2025-10: CNY 6.27 per share

- 2025-11: CNY 5.38 per share

- 2025-12: CNY 4.65 per share

- 2026-01: CNY 4.88 per share

- 2026-02: CNY 4.84 per share

- 2026-03: CNY 3.99 per share

- 2026-04: CNY 3.91 per share

- 2026-05: CNY 3.55 per share

- 2026-06: CNY 2.96 per share

- 2026-07: CNY 3.34 per share

- 2026-08: CNY 3.14 per share

- 2026-09: CNY 4.26 per share

- 2026-10: CNY 3.73 per share

## Annual estimated value (CNY per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.