E-House (China) Enterprise Holdings, a real estate services provider, defaulted on a US dollar bond valued at $298 million, reports Caixin. The company has become entangled in the financial issues faced by several property developers, resulting in the default on the 7.625% bond, which triggered a cross-default on a $300 million note due in 2023.
Last year, E-House reported an RMB 8.9 billion ($1.4 billion) net loss attributable to shareholders, a reversal from a RMB 304.4 million net profit posted in 2020. The company set aside RMB 6.7 billion last year—up from RMB 172.5 million in 2020—to help cover expected losses from the delayed payments of certain customers whose credit quality had deteriorated.
The Hong Kong-listed company’s top five customers are all real estate companies. Together they accounted for 36.7% of E-House’s RMB 8 billion in total revenue in 2020, according to its annual report from that year. Its single largest customer was the heavily indebted China Evergrande Group, which contributed 18% of total revenue.
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