Global site navigation

Local editions

China developer Country Garden reports $6.7 bn half-year losses
Business and Economy

China developer Country Garden reports $6.7 bn half-year losses

by  AFP 2 min read
One of China's biggest builders, Country Garden has racked up debts of more than $150 billion and said this month it had failed to make interest payments on two loans
One of China's biggest builders, Country Garden has racked up debts of more than $150 billion and said this month it had failed to make interest payments on two loans. Photo: Pedro PARDO / AFP/File
Source: AFP

Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!

China's debt-hit real estate giant Country Garden reported half-year losses of 48.9 billion yuan ($6.7 billion) in a stock exchange filing Wednesday, as it flirts with a potentially catastrophic default.

One of China's biggest builders, Country Garden has racked up debts of more than $150 billion and said this month it had failed to make interest payments on two loans.

The group is potentially facing default if it fails to meet a deadline for a bond payment at the beginning of September, which would make it the biggest Chinese real estate firm to crash since rival Evergrande in 2021.

The company's cash flow problems have ignited fears that it could spread turbulence through China's economy and financial system.

The rise of the world's second-largest economy has been largely founded on property and construction, which account for about a quarter of China's GDP.

Read also

Airlines count cost of UK traffic control failure

The company's January-June losses were on par with estimates it made in early August of between 45-55 billion yuan.

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

Over the same period a year ago, the group posted a small profit of 612 million yuan

"The shrinkage of the property sector, coupled with the not yet restored confidence of the capital market, exerted mounting pressure on the Company's business operation," Country Garden said in the Hong Kong Stock Exchange filing.

It added that it will "try its best to improve its operating cash flow by ensuring good sales performance, strive to revitalize under-performing assets and reducing inessential administrative expenses".

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: