Embattled Chinese property developer Country Garden Holdings’ contracted sales in 2023 plunged to less than half the previous year’s level, with a sharp dip in December underscoring the dire situation facing the company, reports Nikkei Asia. Contracted sales are the company’s main source of revenue but the figure for December dipped almost 70% year on year, according to a filing to the Hong Kong Exchange on Thursday evening.
In a brief announcement of unaudited operating data for the final month of 2023, the company said contracted sales reached RMB 6.91 billion ($972.8 million) by value and 680,000 square meters by area. Those figures are down 69% and 76%, respectively, on the year.
Contracted sales are the most important source of funds for developers to service debt. Country Garden—one of the most high-profile distressed developers in China, along with China Evergrande Group—was seen as being on solid financial footing until early 2023, when its cash crunch surfaced.