Chinese property developers project big losses for first half of year
Chinese property developers project big losses for first half of year

Chinese property developers project big losses for first half of year

 

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More than half of the listed Chinese property developers that have so far released forecasts for first-half earnings expect net losses for the period, with some companies projecting losses exceeding 1 billion yuan ($148 million). Forty-two of the 77 homebuilders that have released earnings forecasts expect to book losses for the six-month period, while only 12 expect profit, according to data compiled by Wind Information.

Developers including Yango Group, Jinke Property Group, RiseSun Real Estate Development, Zhongnan Construction Group, Beijing Capital Development, and Zhongtian Financial Group expect first-half loss of over 1 billion yuan.

Sichuan Languang Development Co., Ltd projected 4.6 billion yuan of first-half net losses, the biggest among the developers so far, and more than half of that was likely to be an impairment provision. It’s followed by Yango projecting 3.5 – 4.5 billion yuan loss.

The biggest profit was projected by Guangzhou-based Poly Real Estate Group, which sees a 4% gain in first-half net income to 10.7 billion yuan ($1.6 billion), though the developer said its contracted sales may have slumped 26% on year to 210.2 billion yuan.