Country Garden posts RMB10.8 billion loss, warns of going concern

Country Garden Holdings reported a loss before income tax of RMB10.8 billion for the first half of 2024, a sharp decline from the RMB46.1 billion loss in the same period last year. Revenue plummeted 54.9% year-on-year to RMB102.1 billion, driven by a slump in contracted sales, which totaled RMB26.0 billion. The company delivered over 150,000 housing units, representing 18.22 million sq.m of GFA. Administrative and selling expenses were reduced by 50.8% to RMB4.9 billion. As of June 30, 2024, total cash stood at RMB44.8 billion against total debt of RMB250.2 billion. The company cited ongoing challenges in the Chinese property market and acknowledged "material uncertainties" that cast significant doubt on its ability to continue as a going concern. Negotiations with bondholders are underway to extend debt maturities and explore restructuring options.