More state-owned property developers suffered losses in first half of year

 

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As of July 17, 37 of more than 60 listed state-owned property developers had released first-half earnings and 18 of them expected losses. While in the the first half of 2021 and 2022, 6 and 14 of the 37 companies suffered losses.

CCCG Real Estate said its first-half net profit attributable to shareholders are expected to reach about 550 million yuan, compared to a net profit of 125 million yuan, 162 million yuan and 84 million yuan in the same period in 2020, 2021 and 2022. 

Overseas Chinese Town Ltd said its first-half net profit attributable to the shareholders of the listed company is expected to reach 1.2 – 17 billion yuan, compared to a net profit of 2.14 billion yuan, 1.58 billion yuan and 105 million yuan for the same period in 2020, 2021 and 2022.  

Beijing Capital Development Co. Ltd. said its first-half net loss is expected to reach 1.7 – 2.2 billion yuan, expanding from a net loss of 1.42 billion yuan a year earlier, and compared to a net profit of 1.28 billion yuan and 848 million in the same period in 2020 and 2021. 

CITIC Securities said in a recent note that, state-owned property developers are performing better than private peers, but their sales are also sliding year over year. In 2022, state-owned developers’ sales slid 14% from the previous year, compared to 25% drop for mixed-ownership developers and 43% drop for private developers, and the trend is continuing in 2023, it said.