Author: Cao Anxun.

In today's weather is good. Today's weather is good.

After receiving a 20 billion yuan bank loan, Vanke's liquidity pressure has been rapidly reduced.

On June 5th, Vanke A announced that it will fully pay the principal and interest of a medium-term note due on June 7th, totaling USD 612.6 million. At present, USD 612.6 million has been remitted to Vanke Real Estate (Hong Kong) Co., Ltd.'s overseas bank account and will be deposited into the designated bank account of the agent bank on June 6th.

It is worth mentioning that according to WIND data, this US dollar bond is the largest bond due for Vanke within the year. After paying off this US dollar bond, Vanke will have no more US dollar bonds due within the year, and the debt repayment challenge for the year will have been overcome.

This also confirms what Vanke's president, Zhu Jiusheng, stated at the earnings conference: "Excluding pre-sale regulatory funds, in 2024, although there will be pressure on the company's debt repayment, we will definitely surmount this challenge."

Of course, what Vanke pursues is not just safety this year, but long-term and steady development.

According to Vanke's previously announced plan, it hopes to cut interest-bearing debt by over 100 billion yuan in the next two years and reduce the total scale of interest-bearing debt by more than half in the next five years.

To achieve this goal, Vanke has proposed a comprehensive plan for 'streamlining and strengthening', which includes adjusting financing models, and financial institutions have given Vanke a conversion period of 1-3 years. Every year, Vanke will complete the disposal of 20 billion yuan worth of assets and focus on its main business by reducing non-core assets.

In fact, since receiving a 20 billion yuan bank loan, Vanke's financing situation has continued to improve. From May 31 to now, Vanke has also added two new bank loans totaling 1.7 billion yuan.

According to incomplete statistics, Vanke has recently obtained more than 30 billion yuan in financing involving bank loans and CMBS.

In addition, Vanke is relieving its cash flow pressure through asset disposals and issuing REITs. Recently, it transferred the Shenzhen Bay Super Chief Land to major shareholder Shenzhen Metro Group for 2.235 billion yuan.

Vanke said that this transaction is one of the measures to firmly implement the 'streamlining and strengthening' plan. Through this transaction, it helps reduce the occupation of funds by non-core assets and focuses on doing a good job and making the three major businesses stronger. The participation of Shenzhen Metro Group in winning the land use rights for the project reflects the strong support of major shareholders for Vanke through market-oriented and rule-of-law means.

Industry insiders analyzed that shortly after announcing its 'streamlining and strengthening' plan, Vanke quickly completed its asset disposal, showing its determination to streamline. Selling non-core assets and quickly recovering funds is the wiser choice at this stage, and it can better help it deal with market changes and strategic adjustments.

At the same time, there are signs of a sales rebound at Vanke. In May, Vanke's total sales reached 23.33 billion yuan, a month-on-month increase of 12%. In the first 5 months, Vanke's total sales reached 101.37 billion yuan, ranking third in the industry, only behind Poly Development and China Overseas Land & Investment.

Founder Securities said Vanke obtaining a 20 billion yuan bank loan reflects the market's full recognition and confidence in Vanke, and it has also accelerated the company's credit repair. At the same time, the company's sales are steadily among the first-tier, actively achieving de-stocking and accelerating receivables, and combined with support from multiple aspects on the financing side, liquidity is expected to continue to improve.

With significant progress on the financing side and the introduction of new real estate policies, Vanke has weathered the storm and is waiting for the continued improvement of the sales side to reinvigorate its ability to generate profits and enter a new stage of development.