Country Garden's property services arm expects annual earnings to fall (updated)

Country Garden Services Holdings

13/01/2025 15:51

(Rewrites throughout with more details)
       Jan 13 (Reuters) - The property services arm of Chinese
builder Country Garden  2007.HK  is expecting a drop of up to
1.10 billion yuan  ($150.03 million) in annual earnings as its
sanitation business plans to record an impairment charge for
goodwill and tangible assets. 
        The unit, Country Garden Services  6098.HK , said the
impairment was primarily because the expansion of its sanitation
business had not been carried out as was scheduled and expected
in the past years, leading to a drop in both sales and profit.
        The long payment period of some customers of the
sanitation business had also resulted in some "unsatisfactory"
cash flows, Country Garden Services said in an exchange filing. 
  
        It does not expect the charges to affect the normal
operations of the firm, the company said, adding it had enough
working capital and a stable business operation. 
  
        The company expects to report its fiscal 2024 results in
mid-to-late March 2025, it said.
  
        Property developer Country Garden, which has been in the
middle of a prolonged local debt crisis, said last week it had
proposed a deal to its offshore creditors to cut its debt by
$11.6 billion. 
  
            

($1 = 7.3319 Chinese yuan renminbi)

 (Reporting by Aaditya Govind Rao & Sherin Sunny in Bengaluru;
Editing by Anil D'Silva)
 ((Aaditya.GovindRao@thomsonreuters.com;))