Country Garden widens loss to RMB48.9b in 1H23

The property sector’s shrinkage has exerted mounting pressure on the developer’s operations.

Country Garden has recorded a RMB48.9b loss attributable to its owners for the first half of the year, its latest financial statement showed.

In a bourse filing, the embattled developer attributed its loss to the shrinkage of the property sector.

In 1H23, the developer’s property sales in terms of floor area dropped by 5.3% YoY. Its investment in property development likewise fell, dropping 7.9% YoY.

On the flip side, the company recorded a 39.4% YoY higher revenue of RMB 226.31b.

“However, to ensure punctual delivery of finished properties and the smooth business operation, the company struck a balance between sales volume and selling price at some of its property projects,” Country Garden said.

“In addition, the low-margin projects in the early stage gradually delivered during the period, as well as provision for impairment of property projects increased. All this placed great strain on both the gross profit and net profit,” the developer added.