Country Garden’s sales remain at deflated level as China’s property crisis forces developer Nan Hai to delist
From January to April, Country Garden’s sales ranged from 22.01 billion yuan to 25.01 billion yuan per month, according to previous exchange statements. In the May to July period, sales plummeted, ranging from 12.07 billion yuan to 18.20 billion yuan. Then the trough got even deeper, with August sales falling to 7.98 billion yuan and setting the stage for the low point in September.
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Of that amount, about 119 billion yuan was in foreign currencies, including US dollars and Hong Kong dollars, mostly in senior notes and corporate bonds. The company’s total liabilities stood at 1.3 trillion yuan versus 1.43 trillion yuan at the end of 2022.
Country Garden shares closed 1.33 per cent higher at HK$0.76 on Friday.
China’s overall home sales in October were relatively flat, with the top 100 developers recording total transactions of 406.7 billion yuan, 0.6 per cent higher than September, according to data compiled by Chinese real estate firm CRIC.
However, sales were down 27.5 per cent year on year.
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Meanwhile, Beijing-headquartered developer Nan Hai said it would cease to be listed on the Hong Kong stock exchange as of November 16, according to a filing.
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Nan Hai added that shareholders “who have any queries about the implications of the cancellation of listing of the shares are advised to obtain appropriate professional advice”.