Recently, at the annual meeting, Ms. Yang Huiyan, Chairman of Country Garden, said that the market in 2023 did not recover as expected and is still fluctuating strongly. Ms. Yang predicted that the real estate market this year will still face many difficulties. However, the prospects between cities and between state-owned and private companies will increasingly diverge.
Country Garden is among a group of developers facing cash crunches since being hit by a debt crisis in mid-2021.
Last March, Chairman Yang announced the closure of all side businesses, except for contract construction and construction robot sales.
In October, the company defaulted on $11 billion worth of offshore bonds and extended its domestic bond repayments. The continued market gloom put Country Garden under further pressure.
Country Garden headquarters in Guangdong, China (Photo: AFP).
In a summary of unaudited operating figures for the final month of 2023, Country Garden said its contracted revenue in December reached 6.91 billion yuan.
Home delivery remains Country Garden's top priority this year, with the company expected to deliver 480,000 units, 20% less than the 600,000 units it delivered last year.
The contract construction sector completed 30 projects worth 24.4 billion yuan, ranking 11th in the country in terms of construction area last year.
Country Garden, once one of China’s largest property developers, is now struggling with debt. Contract revenue is the developer’s most important source of cash to repay its debts.
Country Garden's total contracted revenue in 2023 reached 174.3 billion yuan, down 51% from 2022. Revenue achieved in 2023 fell 69% from pre-crisis years.
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