In a summary of unaudited operating figures for the final month of 2023, Country Garden said its contracted sales in December reached 6.91 billion yuan (about 23,700 billion VND) in value and 680,000 square meters in area.
Contract sales, the company's main source of revenue, fell nearly 70% in December from a year earlier, marking the sharpest decline in a year, according to filings with the Hong Kong Stock Exchange.
Country Garden, once one of China’s largest property developers, is now struggling with debt. Contract revenue is the developer’s most important source of cash to repay its debts.
Country Garden headquarters in Shanghai, China (Photo: Reuters).
Country Garden's sales began to decline significantly in April last year. In its interim report released at the end of September 2023, the company admitted to having difficulty with its revenue situation.
Country Garden's total contracted revenue in 2023 reached 174.3 billion yuan, down 51% from 2022. Revenue achieved in 2023 fell 69% from pre-crisis years.
The company's total borrowings as of the end of June stood at 257.9 billion yuan, in the form of bonds and bank loans.
Once a growth engine for the economy , China's real estate industry has slid into crisis since Beijing tightened lending for property investment and purchases in 2020.
Tight liquidity has posed a risk of default for a series of Chinese real estate businesses and caused many projects to stagnate.
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