Cash-strapped Chinese property developer CIFI Holdings (Group) Co has warned of a $2 billion loss for last year, saying the industry’s debt crisis and housing market slump led to a substantial decrease in its business, reports the South China Morning Post. Shanghai-based CIFI said that it expected a loss ranging from RMB 13 billion to RMB 14 billion ($1.87 billion to $2.02 billion) for 2022, according to the company’s filing with the Hong Kong stock exchange late on Friday.
It estimated core net losses attributable to equity owners to range from RMB 5.1 billion to RMB 5.6 billion during the same period, compared to a core net profit of RMB 7.28 billion in 2021.
The expected shortfall was mainly attributed to a decline in the number of properties delivered and increased impairment provision for property projects, which were both “affected by the overall unfavourable business environment of the real estate industry and the pandemic” last year, according to the company’s filing. It also chalked up the deficit to the yuan’s depreciation and fair value loss recorded from investment properties.