Country Garden Services plunges to record low after impairments forecast

Country Garden Services Holdings

19/12/2023 02:56

** Shares in Country Garden Services  6098.HK  tumble as
much as 12.1% to HK$6.08, an all-time low
    ** Stock among top 10 biggest losers and the seventh most
traded stock by value in the bourse
    ** Country Garden Services, the property management unit of
embattled developer Country Garden  2007.HK , says it expects
its 2023 net profit will decrease by 3.2 billion yuan ($448.17
million) to 4.1 bln yuan due to impairments
    ** It says it has made an impairment provision of 1.8 bln
yuan to 2.3 bln yuan for trade receivables due from related
parties of the group
    ** Reason is because the related party customers are engaged
in real estate development and their businesses are under
periodical liquidity pressures due to significant changes in the
real estate market, it says
    ** It also made an impairment charge of 1.4 bln yuan to 1.8
bln yuan for goodwill and other intangible assets
    ** Country Garden Services adds the impairments will not
have any impact on the cash flow for its operation 
    ** The Hang Seng Mainland Properties Index  .HSMPI  falls
3.1%


($1 = 7.1401 Chinese yuan renminbi)

 (Reporting by Clare Jim)
 ((clare.jim@tr.com))