(Yicai) -- Last night, China’s property developer Vanke projected a net loss of approximately RMB 45 billion (US$6.2 billion) for 2024, driven by a continuous market downturn and lower-than-expected sales and profit margins. Compared to a net profit of about RMB12.1 billion in 2023.

Amid this financial turmoil, Chairman Yu Liang and CEO Zhu Jiusheng have resigned. But Yu retains the position as director of the board.

In its filing to the Hong Kong Stock Exchange, Vanke expressed deep regret over its performance and outlined plans for business reformation and risk mitigation. The company achieved the delivery of over 180,000 houses and reported sales of RMB 246.02 billion, placing it at the top of the industry in sales area. It also realized a contract amount from bulk transactions of RMB 25.9 billion and recovered over RMB 10 billion in cash through stock revitalization efforts.

Amid these changes, the Guangdong and Shenzhen governments, along with financial institutions, have pledged full support to Vanke, according to local news outlet  Shenzhen Special Zone Daily. A senior official from the Shenzhen State-owned Assets Supervision and Administration Commission stated that they have the capacity to assist Vanke’s development through various market-oriented and legal means. Shenzhen plans to coordinate assets and resources to enhance liquidity and gradually reduce asset-liability ratios, reinforcing its role as Vanke's largest shareholder.

Looking ahead, Vanke added it believes the real estate market is stabilizing and aims to accelerate risk mitigation efforts while focusing on its core businesses to achieve a healthier and more sustainable development path in 2025.