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China Evergrande Services, the property management arm of embattled property developer China Evergrande Group, surged as much as 8.2% before closing down 5.5% at HK$0.69.
The company announced a revenue of 6.15 billion yuan for the first half of the year, growing by 6.2% from a year earlier. Net profit surged 43.1% year over year to 781 million yuan.
After reaching debt extension agreement with some creditors and strict cost control, the company will have sufficient working capital to meet the financial liabilities before the end of June 30, 2024, it said.
China Evergrande Services, the property management arm of China Evergrande Group, said that the company will no longer pursue rapid expansion in business scale and will instead strive to achieve sustainable development with high quality and decent efficiency, said chairman Duan Shengli.
The company’s development direction will shift from “rapid expansion in scale” to “high-quality development”, with a guiding principle of “consolidating fundamentals, enhancing efficiency, stabilizing growth, and seeking breakthroughs”, he said.
In the past, the company suffered big losses due to the liquidity crisis of its related party and the 13.4 billion yuan collateral for pledge guarantees by its parent, but it has taken active measures to ensure sustainable operations, he said.
He believed that the short-term headwinds will not change the company’s long-term growth momentum and it will eventually build a new model of high-quality and independent development, he said.
