Country Garden Holdings Co (碧桂園), China’s largest property developer, reported a first full-year loss since its 2007 listing in Hong Kong.
The Foshan-based company posted a net loss of about 6.1 billion yuan (US$886.5 million) last year, compared with a profit of 27 billion yuan a year earlier. The developer warned of the loss earlier this month.
The result underscores how a slump in China’s real-estate sector is weighing on some of the strongest private builders that have avoided a default so far.
Photo: AFP
While early signs of a housing market stabilization have finally emerged, the turnaround remains tenuous. A chunk of Country Garden’s land bank is in low-tier cities, which usually have higher inventory and weaker housing demand.
Revenue stood at 430 billion yuan, roughly in line with the 427 billion yuan estimate compiled by Bloomberg. Core net profit, which adjusts for items including property revaluation, reached 2.6 billion yuan, the company said.
Meanwhile, a Chinese tycoon’s US$271 million mansion in the luxurious Peak neighborhood of Hong Kong was taken away by a bank, just years after the businessman made headlines with his record-breaking shopping spree.
Chen Hongtian (陳紅天), chairman of Hong Kong-based investment firm Cheung Kei Group (祥祺集團), also had an apartment in the Frank Gehry-designed Opus building and the Cheung Kei Center in the territory’s Hung Hom area seized.
In total, he lost about US$1.4 billion of properties in recent months, in Hong Kong and London, according to data compiled by Bloomberg.
Chen’s plight underscores the liquidity crunch that Chinese real-estate entrepreneurs are facing. He joins a number of tycoons — including China Evergrande Group (恆大集團) chairman Hui Ka Yan (許家印) — in losing control of their luxury properties.
The house on the Peak was taken earlier this month by Bank of East Asia Ltd (東亞銀行), while Bank of Communications Co (交通銀行) seized the Opus apartment last month, documents from the government showed.
On Tuesday, a receiver was appointed for the Cheung Kei Center, according to a Companies Registry filing. It was taken by Hang Seng Bank Ltd (恒生銀行) through PricewaterhouseCoopers LLP.
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