(Beijing Comprehensive News) Chinese real estate giant Country Garden, which is deeply trapped in the debt crisis, lost 48.9 billion yuan in the first half of this year (RMB, the same below, about 9.059 billion yuan).Country Garden said that the company is facing the biggest difficulties since its establishment. If the financial situation continues to deteriorate, the possibility of debt defaults will occur.
Comprehensive Bloomberg, Reuters, Agence France -Presse and Hong Kong Economic Daily reported that Country Garden issued a announcement on Wednesday (August 30) that the loss of shareholders attributable to the company in the first half of this year was 48.93 billion yuan.The worst losses since listing in 2007.
Country Garden said that the external environment of the real estate industry has undergone tremendous changes since 2021. Although the company predicts the adjustment cycle of this round, the depth and duration of the market have exceeded expectations and failed to make more efforts earlyCoping measures have led to the company's biggest difficulties since its establishment.
Country Garden also said that if the future financial situation continues to deteriorate, it may not be able to meet the financial contracts of several borrowings, leading to breach of contract.The company will do its best to improve operating cash flow and adopt various debt management measures to resolve staged mobility pressure.
The above warning highlights China's increasingly severe real estate crisis and has a serious blow to this header.Some analysts believe that the debt problem in Country Garden may be worse than the competitor Evergrande, because the number of real estate projects in Country Garden is four times that of Evergrande.
After the announcement of Country Garden's financial report, the company's stock price closed on Wednesday, a 3.3%decline, and fell to HK $ 0.88 (about S $ 0.15).Since this year, Country Garden's stock price in Hong Kong has plummeted 67%.
