CEO Morning Brief

Chinese Property Developer Sunac Warns of Losses for Second Straight Year

Publish date: Fri, 24 Mar 2023, 08:54 AM
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TheEdge CEO Morning Brief

(March 23): Real estate developer Sunac China Holdings Ltd on Thursday (March 23) warned of losses for a second straight year as a crisis in the country's property sector continued to weigh on the demand for new houses and its earnings.

The company expects to report an attributable loss in the range of 27 billion yuan (RM17.5 billion) and 28 billion yuan for the year ended Dec 31, 2022. It logged a loss attributable of 38.26 billion yuan in 2021.

Property firms in China over the last couple of years have either struggled to sell new houses or have sold them at lower prices than expected, with Covid lockdowns further exacerbating the woes for the sector.

Sunac is one of several developers that has missed offshore bond payments and struggled to repay debt in the past year amid slowing sales, with some now scrambling for restructuring agreements with their creditors.

Beleaguered China Evergrande Group on Wednesday unveiled plans for the restructuring of its US$22.7 billion in offshore debt, which could set a template for distressed rivals and shape investor sentiment on the embattled property sector.

Trading in HK-listed Sunac China's shares were suspended in April 2022. They will continue to remain suspended, it said on Thursday.

Source: TheEdge - 24 Mar 2023

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