Chinese property developer Country Garden’s Chairman Yang Huiyan and President Mok Bun said in a letter to customers, investors and partners that, due to adverse sales and refinancing environment, the company expects to incur a larger loss in the first half of 2023, and is currently experiencing periodic liquidity stress.
The management apologized for the situation and said they firmly believe the real estate sector will eventually return on the track of healthy and stable development after this round of profound adjustments.
Facing extreme environment, Country Garden has tried every means for self-rescue, including accelerating sales, revitalizing assets, cutting spending and seeking controlling stakeholders’ support in order to ensure delivery and safeguard credibility, they said.
However, the real estate market is yet to recover, with market size still shrinking, and it takes more time for confidence in the capital market to recover, leading to more pressure of business operations and the biggest difficulties since the establishment of the company, they said.
Country Garden will take more forceful and effective measures to ensure property delivery, address the periodic liquidity stress and ensure business operation, the said.