Country Garden posts $22.5 billion loss, faces "material uncertainties"

Country Garden Holdings reported a net loss of RMB167.3 billion (approximately US\$22.5 billion) for the year ended December 31, 2023, a stark reversal from the RMB5.4 billion profit in 2022. Revenue fell 6.8% year-on-year to RMB401 billion. Contracted sales attributable to shareholders also decreased to RMB174.3 billion. The company cited a challenging real estate market in China and "serious challenges such as declining sales rate and credit crunch." As of December 31, 2023, the company's total cash stood at RMB63.8 billion, while total debt decreased to RMB249.6 billion. The auditor issued a disclaimer of opinion, highlighting "material uncertainties" regarding the company's ability to continue as a going concern. Country Garden plans to address liquidity pressures through debt management measures, including negotiations with bondholders and a proposed restructuring of offshore liabilities.