Shares of debt-stricken property developer CIFI Holdings Group plunged by the most on record after trading resumed following a six-month suspension due to delay in filing financial results, with the company unveiling overnight a loss in the first half of the year, reports the South China Morning Post. The stock fell by 59% to HK$0.31, and it has now lost nearly 96% of its value from a peak in April 2021. Its capitalisation has been reduced from an all-time high of around HK$64 billion ($8.2 billion) to a mere HK$3.3 billion.
In its delayed earnings release, the company turned to a loss of nearly RMB 9 billion ($1.2 billion) for first half of the year, from a profit of RMB 1.9 billion a year ago. It logged a RMB 13 billion loss for 2022, filings showed. But the company’s long-term liabilities shrank to RMB 34.8 billion by the end of June 2023, from RMB 41.3 billion at the end of 2022 while working capital dropped to RMB 30.6 billion from RMB 49 billion in the same period, indicating balance sheet downsizing.
Meanwhile, China’s property debt crisis continued worsening, with China Evergrande Group, the world’s most indebted developer, missing yet another bond repayment this week even as it faces a winding up petition next month. The company has scrapped six creditor meetings scheduled for this week, and it disclosed its inability to meet regulatory requirements to issue new bonds while its mainland China unit failed to repay a note.