Country Garden, one of China’s largest property developers, said it had spent up to $7.6 billion in the first half of this year, further exacerbating the crisis over the country’s struggling property sector, CNN reports. Ta.
Country Garden could post losses of CNY45 billion to CNY55 billion (approximately US$6.2 billion to US$7.6 billion) in the six months to June, investors said in a Hong Kong stock exchange filing. warned.
By comparison, profit in the same period last year was about RMB 1.9 billion (US$264.3 million).
According to CNN, the revelations reveal the current financial crisis facing Country Garden, a large-scale construction company that builds hundreds of thousands of homes a year across China.
The developer, which employs about 300,000 people, is heavily indebted compared to Evergrande, the world’s most indebted real estate group.
The company has been the latest sign of China’s economic troubles in recent weeks and is on the brink of default and, by its own admission, is trying to bail itself out.
Country Garden shares plunged 8.7% in Hong Kong on Friday after a loss warning was issued, as well as reports from Chinese news outlet Yicai that the company was preparing to restructure its debt, citing unnamed sources.
The company said in a filing that it would “consider implementing various debt management measures,” according to CNN, but did not provide further details to “address” the challenges. He said he plans to rely on the newly established countermeasures committee. Country Garden did not respond to a request for comment.