2023-08-11 11:39:00
Chinese real estate developer Country Garden Holdings has vowed to “do all it can to save itself”. The company is hoping to boost sentiment with the slogans following it issued a loss warning and suffered yet another downgrade.
Updated August 11, 2023 19:39 CST
Chinese real estate developer Country Garden Holdings Co., 2007.HK, CTRYY, has vowed to “do all it can to save itself”. The company is hoping to boost sentiment with the slogans following it issued a loss warning and suffered yet another downgrade.
Shares in embattled Chinese property developer Country Garden tumbled on Friday following the company warned it might lose billions of dollars in the first half of the year and amid reports earlier this week that it missed bond interest payments on time.
Country Garden shares fell as much as 14 percent during Hong Kong trading hours, adding to a difficult week in which the stock has fallen 31 percent.
On Thursday evening, Country Garden said in a statement to the Hong Kong Stock Exchange that it expects a net loss of regarding 45 billion to 55 billion yuan ($6.25 billion to $7.62 billion) in the first half of this year, compared with a net loss of regarding 45 billion yuan to 55 billion yuan in the same period last year. The profit was RMB 1.91 billion. It would be the company’s first interim loss since it listed in Hong Kong 16 years ago.
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Chinese real estate developer Country Garden Holdings Co., 2007.HK, CTRYY, has vowed to “do all it can to save itself”. The company is hoping to boost sentiment with the slogans following it issued a loss warning and suffered yet another downgrade.
Shares in embattled Chinese property developer Country Garden tumbled on Friday following the company warned it might lose billions of dollars in the first half of the year and amid reports earlier this week that it missed bond interest payments on time.
Country Garden shares fell as much as 14 percent during Hong Kong trading hours, adding to a difficult week in which the stock has fallen 31 percent.
On Thursday evening, Country Garden said in a statement to the Hong Kong Stock Exchange that it expects a net loss of regarding 45 billion to 55 billion yuan ($6.25 billion to $7.62 billion) in the first half of this year, compared with a net loss of regarding 45 billion yuan to 55 billion yuan in the same period last year. The profit was RMB 1.91 billion. It would be the company’s first interim loss since it listed in Hong Kong 16 years ago.
The developer said: “The expected net loss is mainly due to the impact of the decline in sales in the real estate industry, resulting in a decrease in the carryover gross profit margin of the real estate business, an increase in the impairment of property projects; and the expected net exchange loss caused by foreign exchange fluctuations.”
Country Garden’s troubles have raised fresh concerns regarding China’s debt-ridden real estate sector, as well as fears that the broader market might be rippling.
(This article is translated from MarketWatch. MarketWatch is operated by Dow Jones, the parent company of The Wall Street Journal, but MarketWatch is independent of Dow Jones Newswires and The Wall Street Journal.)
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