According to Nikkei Chinese, mid-year financial reports for Chinese real estate developers in the first half of 2024 revealed that 56% of large real estate companies in China and Hong Kong reported losses, comprising 88 of the 158 companies covered by the analysis. The real estate downturn has led to a persistent slump in new home sales, with sales declining by 15%. Fifteen of companies, including the Evergrande Group and Country Garden Holdings, did not disclose their mid-year reports by the August 31 deadline and were excluded from Nikkei’s statistics.
The total losses for the 158 companies covered amounted to 64.3 billion yuan ($8.9 billion), significantly higher than the 13.1 billion yuan ($1.8 billion) loss during the same period last year. Private enterprises with poor financing capabilities accounted for the majority of top losses.
Shimao Group Holdings reported the largest loss at 22.7 billion yuan ($3.1 billion), an increase from the previous year’s 12.1 billion yuan ($1.7 billion) loss. The company defaulted on its debt in July 2022, releasing a statement to the effect that the real estate market continues to adjust with no turning point in sight for the current sales slump.
Sunac China Holdings reported the second-largest loss at 15 billion yuan ($2.1 billion).
China Aoyuan Group reported the highest profit at 22.3 billion yuan ($3.1 billion), a turnaround from the company’s 2.9 billion yuan ($400 million) loss last year. This company’s profits, which came despite a 57% decrease in sales, were largely due to gains from foreign currency debt restructuring.
Source: Nikkei Chinese, September 3, 2024
https://zh.cn.nikkei.com/china/ccompany/56585-2024-09-03-09-14-39.html