(Bloomberg) -- Kaisa Group Holdings Ltd. became the latest Chinese property developer to warn it will likely miss the deadline for reporting audited 2021 results due this month.
The developer said it had entered into “constructive dialogue” with creditors as it sought to find a solution to its financial difficulties, and blamed the delay of its audit process on China’s latest Covid-19 outbreak. It joins developers including China Evergrande Group, Sunac China Holdings Ltd. and Shimao Group Holdings Ltd. in delaying the publication of results.
Evergrande meanwhile assured investors it was on track to provide creditors with a preliminary restructuring proposal by the end of July and urged patience. The developer asked investors in a call Tuesday evening not to take aggressive action so it can proceed with its holistic plan for all creditors, according to people on the call.
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- Evergrande and Its Units to Delay Issuing FY Audited Results
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China Developers’ 40% Sales Crash Could Continue Through June (9:05 a.m. HK)
A high base for contracted sales in March-June 2021 suggests China’s top 100 property developers may extend their 40% home-sales drop through mid-2022, Bloomberg Intelligence analyst Kristy Hung wrote. Sharp rises of sales seen in 2017-2021 look unlikely to resume due to weaker occupier and investor demand.
Evergrande Restructuring Plan on Track for End-July (8:00 a.m. HK)
China Evergrande Group assured investors it was on track to provide creditors with a preliminary restructuring proposal by the end of July. A company executive emphasized Evergrande would seek to strengthen communication with them, people on the call said, asking not to be identified as the details are private.
Evergrande and its team have so far been in contact with 89 offshore institutions and individual investors to exchange views with them, the company executive said, according to the people on the call.
Kaisa Work With Legal, Financial Advisor Still Ongoing (10:10 p.m. HK)
Kaisa Group Holdings Ltd. says it estimates that results for the year ended Dec. 31 will not be published on or before March 31. The company is in constructive dialogue with its creditors to stabilize the situation, it said in a press release. It expects share trading to be suspended April 1.
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