During the first half of the previous year, from January to June, Country Garden had recorded a profit of approximately 1.9 billion yuan (264 million US dollars). This disclosure has highlighted the financial crisis of Country Garden, a major builder in China that constructs hundreds of thousands of homes annually.
One of China’s largest property developers, Country Garden, has stated that it could incur a loss of $7.6 billion in the first half of this year. This claim has been reported in media sources. In a filing with the Hong Kong Stock Exchange, Country Garden warned investors that it anticipates a potential loss ranging from 45 billion to 55 billion Chinese yuan (approximately $6.2 billion to $7.6 billion US dollars) in the six months leading up to June.
Last year during the same period, the company had achieved a profit of around 1.9 billion yuan (264 million US dollars). This revelation has brought to light the financial crisis of Country Garden, a major builder in China that constructs hundreds of thousands of homes annually.
Country Garden provides employment to nearly three hundred thousand people. The company is burdened with a significant debt, which is being compared to the world’s most indebted property group, Evergrande. In recent weeks, the company has become the latest signal of China’s economic woes, being on the brink of default and stating in its recent filings that it is working to save itself.
After the warning of potential losses, shares of Country Garden plummeted by 8.7% in Hong Kong on Friday. Additionally, a report by the Chinese news outlet Yicai stated that the firm was preparing for debt restructuring while referring to unidentified sources.
According to media reports, the company stated in its filing that it will “consider adopting various debt management measures. It will rely on a newly established task force to tackle its challenges.” Country Garden did not immediately respond to requests for comment on the matter.
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