By Jiahui Huang
Shares of Modern Land (China) slumped in their first day of trading in more than a year after the Chinese property developer posted delayed results showing wider losses.
Shares were down 23% at HK$0.08 at the mid-day break on Thursday. Trading in the company’s shares had been suspended since April last year after it failed to publish financial results on time.
The Beijing-based real-estate company released 2022 results late on Wednesday, which showed that its net loss more than doubled to CNY4.45 billion for the year while revenue was roughly halved to CNY5.60 billion. For the first half of 2023, losses were at CNY1.00 billion, it said.
Alongside the results, Modern Land also said that it is in talks with lenders to renew borrowing agreements and stave off demands for immediate repayment until it completes projects that will generate fresh cash flows. The company is also seeking financing from both shareholders and new investors, and weighing the sale of interests it has in project-development companies, it said.
Like many property companies in China, Modern Land has struggled amid lackluster economic growth, weak demand and a liquidity crunch that has squeezed the sector.
Modern Land was tentatively upbeat on the recent easing of real-estate restrictions in some Chinese cities. It said it expects measures like lowering interest rates on mortgages for first homes and cutting down-payment ratios to stimulate market demand in the short term, and is “cautiously optimistic” on the mid- to long-term impact of these policies.
Write to Jiahui Huang at [email protected]
Read the full article here
