03/28/2024 – 13:55
The Chinese developer Country Garden announced this Thursday, 28, that it will delay the release of its corporate balance sheet with the annual results for 2023 and will suspend negotiations of the company's shares in Hong Kong, in addition to postponing a meeting with the board of shareholders. Country Garden did not provide new dates or forecasts for the normalization of the company's procedures.
In a document filed with the Hong Kong Stock Exchange (HKEX), Country Garden said it needs to “collect more information to make appropriate accounting estimates and judgments” about its financial results for the year ending December 31, 2023. “Due to continued volatility of the industry, we are operating in an increasingly complex environment,” the company said, adding that it prefers to wait to adjust the numbers after an audit process to “fairly” reflect the group’s performance.
As a consequence, the developer was unable to complete and publish the report as planned, this Thursday (28), and does not expect to complete the analysis within the limit established by HKEX, which runs until March 31 of this year.
Failure to comply with listing rules should lead to the suspension of operations from April 2, Country Garden reported. The company stated that it does not expect significant effects on operations or the judicial recovery process, committing to maintain housing deliveries, comply with regulatory calls, continue with the process of revitalizing net capital and resolve debt risks.
The market projected continued weakness in Country Garden's corporate results, after months of financial difficulties. Last year, the developer missed the payment date for several bonds, had its rating downgraded by different risk rating agencies and saw a weakening in operating revenues, given the crisis of confidence and deep losses in China's real estate market. For Nomura, this trajectory of slow revenue and profit growth will continue in the coming years. *With information from Dow Jones Newswires.
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