Property giant Country Garden predicts net loss of up to 55 billion yuan for H1

China's property developer Country Garden is expecting a net loss of 45 billion yuan to 55 billion yuan for the first half of this year, its biggest challenge in history.

The losses were due to the downward trend of the real estate market, decreased gross profit margins, and forex fluctuations, the company said in a public announcement on Thursday.

From January to July 2023, the group realized equity sales amounting to 140.8 billion yuan, a year-on-year decrease of 35 percent, and a decrease of 61 percent compared to 2021.

In July, the equity sales amount was 12.1 billion yuan, with a year-on-year decrease of 60 percent and a decrease of 78 percent compared to 2021, the fourth consecutive month of decline.

The group promised to take responsibility and make sure they complete their ongoing projects as promised, according to the announcement.

The company said it has taken self-help measures, including safeguarding its cash flow, cutting non-core and non-essential operating expenses, receiving strong support from its controlling shareholders, and forming a specific working group to tackle with the difficulties.

Despite such efforts, Country Garden admitted that the property market is currently experiencing difficulties in recovering and that the pressure of its overall operations is increasing.