Trading in the Hong Kong-listed shares of Country Garden Holdings (HK:2007) is set to be suspended on Tuesday (April 2), as the embattled real estate company has delayed the publication of its results for 2023. In a Hong Kong stock exchange filing, the Chinese property developer said that it needs to collect additional information to make appropriate accounting estimates and assessments.
Consequently, the company expects the delay in filing the annual results in a timely manner to trigger non-compliance with the listing rules. However, the company stated that it does not expect the suspension of trading of its shares to have any material impact on its operations.
Country Garden’s Unending Troubles
Country Garden had originally scheduled a board meeting on March 28 to consider and approve the annual financial results. The company said that it will inform the shareholders of the date of the board meeting “as and when appropriate.”
Like several other Chinese real-estate companies, Country Garden has also faced several headwinds in recent years and is burdened with debt. Excess supply, weak prices, and macro pressures have weighed on China’s housing market.
Earlier this month, the company failed to pay a 96 million yuan coupon payment on a bond maturing in 2026. Additionally, as per Reuters, Country Garden defaulted on $11 billion worth of offshore bonds in October 2023. In Thursday’s filing, the company said that it is in talks with its financial and legal advisors to evaluate its position and is “working closely with various creditors to formulate practicable measures as soon as possible.”
The company recently reported a steep drop in its February sales. Shares of Country Garden Holding have plunged nearly 78% over the past year.
