(Bloomberg) – China Evergrande Group’s real estate sales fell in August as the real estate market slowed, dealing another blow to the cash-strapped developer.
Contract sales fell 26 percent from a year earlier to 38.08 billion yuan ($ 5.9 billion), according to a document released Friday night. A year earlier, the company achieved sales of around 51.48 billion yuan.
The world’s most indebted developer has become one of the biggest financial worries in China, given its $ 305 billion stack of liabilities to banks, shadow lenders, corporations, investors, sellers and investors. home buyers. Evergrande stocks and bonds have fallen to levels that suggest investors are bracing for a potential default.
Regulators in Beijing last month urged the company to resolve its debt problems in a rare public rebuke.
Evergrande warned this week that he could default on his loans if his efforts to raise funds were insufficient. Despite selling stakes in some of its most prized assets and offering big discounts to offload apartments, the developer saw a 29% drop in profits in the first half of the year with its print losses on mainland Hengda Real Estate and its electric vehicle units.
Tightening regulations and the latest Covid-19 outbreak are clouding the selling outlook for Chinese residential real estate developers, Bloomberg Intelligence analysts wrote last month. Home prices rose at the slowest pace in six months in July.
Additionally, Evergrande’s suppliers have suspended work on some projects due to unpaid invoices, the company said in its earnings report. “The group will do everything possible to continue operations and will endeavor to deliver the properties to customers as planned,” he said.
In an effort to appease homebuyers, Evergrande pledged Wednesday to carry out its housing projects, with billionaire Hui Ka Yan describing the directive as a “military order.”
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