Fengming Haishang housing estate owned by Country Garden Holdings Co. in Shanghai, China, Tuesday, July 12, 2022.
Qilai Shen | Bloomberg | Getty Images
Shares in a troubled Chinese real estate company Country Garden Holdings fell to an all-time low on Friday as the company issued a profit warning a day earlier.
The stock fell to an intraday low of 90 Hong Kong cents, extending the company’s losing streak after eight losing streaks in the past nine days. That included a 14.3% plunge on Aug. 8.
The sell-off in Country Garden shares also spilled over into the real estate sector as a whole.
The broader Hang Seng Mainland Property Index fell 1.49% in afternoon trade on Thursday. parts of the counterpart Longfor group were down 1.9% while China Resources Country recorded a price loss of around 1%.
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In a filing with the Hong Kong Stock Exchange, the company said it expects a record net loss of about 45-55 billion yuan (or about $6.24-7.63 billion) for the six months to June. In comparison, profit for the same period last year was 1.91 billion yuan.
Country Garden said this was “mainly due to the decline in the gross profit margin of the real estate business and the increase in the impairment of real estate projects as a result of the decline in sales in the real estate industry.”
Expected exchange rate losses also contributed to the decline in net profit, it said.
Attributable revenue for January-July is estimated at 140.8 billion yuan ($19.51 billion) — down 35% year-on-year and down 61% from the same period in 2021.
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Earlier this week, Country Garden sold off after the real estate company reportedly missed two bond coupon payments totaling $22 million over the weekend.
An investor relations rep for Country Garden didn’t deny the media reports, but also didn’t specify the company’s payment plans, according to Sandra Chow, co-head of Asia Pacific research at CreditSights, a unit of Fitch Group.
— CNBC’s Evelyn Cheng contributed to this report