Chinese developer Yuzhou joins peers in flagging hefty annual losses (updated)

Yuzhou group Co

15/03/2023 15:36

(Adds details on outlook)
       March 15 (Reuters) - 
    Shanghai-based Yuzhou Group Holdings  1628.HK  on Wednesday
forecast a massive annual loss, as a severe slowdown in China's
real estate sector hurt its operations.
    Yuzhou is the latest in a series of Chinese property
developers that have flagged hefty losses for 2022, hurt by a
combination of plummeting demand for new homes, steep cost jumps
and repeated COVID-19 lockdowns.          
        Chinese developers are also facing an unprecedented
liquidity squeeze due to years of regulatory curbs on borrowing,
leading to a string of offshore debt defaults, credit-rating
downgrades and sell-offs in developers' shares and bonds.
  
    For the year ended Dec. 31, 2022, Yuzhou is expected to
record an attributable loss of 12 billion yuan ($1.74 billion),
compared with a profit of 862 million yuan posted a year
earlier. 
    It is also set to post revenue of 26.74 billion yuan for the
year, down 1.2% from 27.07 billion a year earlier.
        Shares of Yuzhou have fallen more than 35% in the past
year. They hit a record low in October last year.
  
    
($1 = 6.9033 Chinese yuan renminbi)

 (Reporting by Nausheen Thusoo in Bengaluru; Editing by Anil
D'Silva)
 ((Nausheen.Thusoo@thomsonreuters.com;))