Can Country Garden last long?

The situation in Country Garden may not be optimistic.

After losing 6.052 billion yuan in 2022, Country Garden's interim results in 2023 may continue to lose money. On July 3 1 day, Country Garden announced that it expected the company to record a net loss in the first half of 2023. As for the reasons for the loss, Country Garden said that the forecast was due to the expected net exchange loss caused by the downward sales of the real estate industry, the decline in the gross profit margin carried forward, the increase in the impairment of property projects and foreign exchange fluctuations. Country Garden said nothing about the scope of the loss.

In fact, when the 2022 financial report was released at the end of March this year, Country Garden sent a signal of financial stability just like the outside world, including that the total loan balance of Country Garden fell to 27 1, 3 1 billion yuan, down14.7% year-on-year; Excluding accounts received in advance, the asset-liability ratio is 69.4%, which is lower than the red line of 70%. Judging from the current situation of Country Garden, its situation may not be optimistic.

Country Garden responds to bond interest payment.

On August 8, several media reports showed that Country Garden failed to pay the interest on two US dollar bonds due on August 7. According to public information, these two bonds are Country Garden? 4.2% N20260206 and country garden? 4.8% N20300630, listed on the Singapore Stock Exchange, has an issuance scale of 500 million US dollars, and its maturity dates are February 6, 2026 and August 6, 2030 respectively.

After many inquiries, some sources confirmed the authenticity of the relevant information to reporters. However, because the interest of the two bonds has a grace period of 30 days, it does not constitute a substantive breach of contract at present.

For the failure to pay the coupon on August 7, the above-mentioned person said that at present, due to the influence of the big environment, the industry continues to be in a downturn, and multiple unfavorable factors are superimposed, resulting in a continuous decline in industry sales and a failure in open market financing. In the process, Country Garden suffered a sharp drop in bonds, which affected interest payment. "Affected by the recent deterioration of the sales and refinancing environment and the supervision of various funds, the company's book available funds continue to decrease, and there is a phased flow pressure."

According to reports, Country Garden attaches great importance to the resolution of debt risks, and is still actively optimizing capital arrangements to protect the legitimate rights and interests of creditors. It is also known that this year, Country Garden has always insisted on ensuring delivery, fair exchange, safety and other work in the first place. "The company has always insisted on fulfilling its social responsibilities. In 2022, the total number of houses delivered was close to 700,000, and the company expects to deliver another 700,000 houses this year. " According to sources, 278,000 sets of delivery tasks have been successfully completed in the first half of this year, and the delivery volume continues to be the first in the industry, and there is no overdue delivery.