Chinese property developer Sunac posts $2 billion core loss in 2022 (updated)

Sunac Services Holdings

31/03/2023 16:00

(Adds details on results, outlook and chairman's commentary)
       HONG KONG, March 31 (Reuters) - Major property developer
Sunac China  1918.HK  on Friday logged a net narrowing core loss
of 13.86 billion yuan ($2.02 billion) in 2022, as the debt-laden
firm slowed its project construction and incurred higher
interest expenses.
    Over the last two years, property firms in China have either
struggled to sell new houses or have sold them at lower prices
than expected, though a series of supportive policies from the
government drove expectations of a faster recovery of the
sector. 
    Last year's core net loss, which excludes the revaluation of
assets and financial instruments and foreign exchange loss,
compares to a 25.30 billion yuan loss reported in 2021.
    Sunac also published its overdue 2022 interim results on
Friday, posting a core loss of 11.06 billion yuan.
    The Beijing-based firm said its shares, which are under a
year-long halt, are expected to resume trading in April this
year. They had been suspended pending the release of its
financial results.  
    Sunac is among the many Chinese developers that defaulted
last year as the sector reeled under a debt crisis. It started
recording losses in the second half of 2021. 
    The property developer said earlier this week it had reached
agreements with a group of offshore creditors to convert its
debt into new notes and convertible bonds backed by its Hong
Kong-listed shares, and shares in its property management unit
Sunac Services  1516.HK .
    Its chairman Sun Hongbin told investors the developer has
been actively working with asset managers and applying for
official funding to ensure developments are completed.
    "The Group will strive to complete the necessary legal
procedures for the offshore debt restructuring within 2023,"
Hongbin said in a statement.    



($1 = 6.8695 Chinese yuan renminbi)

 (Reporting by Roushni Nair in Bengaluru and Clare Jim in Hong
Kong; Editing by Krishna Chandra Eluri)
 ((Roushni.Nair@thomsonreuters.com;))