Country Garden Holdings (2007. HK), China’s largest property developer, reported a record net loss and a 90% drop in core profit in 2022 due to a slow property market and a debt crisis.
Country Garden reported core earnings of 2.6 billion yuan ($377.36 million), down from 26.9 billion the year before.
It lost 6.1 billion yuan after making 26.8 billion in 2021.
Country Garden announced the poor results earlier this month, citing a decline in gross profit margin, a surge in property project impairment reserves, and net foreign currency losses.
Since mid-2021, debt-stricken Chinese property businesses have struggled to finish projects and sell new homes.
Several Chinese developers have reported a decline in core profit or a loss for 2022, although some state-backed counterparts have reported an increase.
As of 0555 GMT, Country Garden shares rose 0.5%.HSMPI gained 0.7%.
In a Thursday filing, the developer called 2022 “a brutal winter” for the sector but claimed the market had bottomed out and was prepared for a resurgence as good economic measures restored industry confidence.
“But, Country Garden must be clear-headed since the market will not return overnight,” it stated. “The property sector remains stressed.”
Its net gearing ratio was 40%, down 5.4 percentage points from the end of end-2021, and its interest-bearing obligations declined 15% to 271.3 billion yuan.
The developer stated it would build construction robots and a tech-enabled construction firm to become a high-tech company.
