China Real Estate Developer Country Garden is expectedIn the first half of this year, a loss of up to 55 billion yuan (RMB, the same below, about S $ 10.3 billion) will admit that "the company has encountered the biggest difficulty since its establishment" and announced that four measures have been used to turn the predicament.
Comprehensive Bloomberg and surging news reports, Country Garden issued an announcement on the Hong Kong Stock Exchange on Thursday (August 10), which is expected to have a net loss of 45 billion to 55 billion yuan in the first half of this year.Country Garden recorded net profit of 1.91 billion yuan in the first half of last year.
Country Garden said that the cause of losses was mainly due to the decline in the sales of the real estate industry, the decline in the turnover of business, the impairment of property projects, and the expected net exchange loss caused by foreign exchange fluctuations.
Country Garden said that the real estate industry has entered an unprecedented difficult period since 2021, and multiple unfavorable factors are superimposed, resulting in severe difficulties and challenges for industry sales and open market financing.In the first seven months of this year, the company realized equity sales of 140.8 billion yuan, a year -on -year decrease of 35%.In July, the amount of equity sales was 12.1 billion yuan, a month -on -month decrease of the fourth consecutive month, a year -on -year decrease of 60%.
Country Garden said that although the company has encountered the biggest difficulty since its establishment, it has always been confident in the prospects of the Chinese economy.Country Garden also announced four self -rescue measures to try to reverse the current dilemma.
Four major measures include: implementing the main responsibility, dedicated funds, strict management of pre -sale monitoring funds, etc., and go all out to pay for delivery.Plant debt management measures; ensure the orderly development of operations, strengthen internal control, further streamline the organization, reduce administrative management expenses, and reduce salary at executives;Difficulty.
Country Garden on Tuesday (8th) confirmed that the interest on the US dollar debt that could not be paid was unable to pay. It admits that the company has occurred in staged flow pressure.After the rumor impact, the outside world's concerns about Country Garden's debt repayment capacity exacerbated.
Bloomberg's summary price data shows that Country Garden's US dollar bonds have plummeted 59%in the past month and the stock price fell by 30%.
Moody's Thursday also lowered the Country Garden rating three to CAA1, pointing out that "in view of the deterioration of Country Garden's liquidity and financial flexibility, the re -financing demand is huge and the financing channels are still restricted.Its prominent liquidity and re -financing risk. "
Bloomberg Industry Research (BI) Analyst Kristy Hung warned in a report on Wednesday that the number of Country Garden projects is four times that of Evergrande, so the impact of any possible debt defaults on Country Garden on the Chinese real estate market, Will exceed the impact of Evergrande's debt crisis at the end of 2021.
