(Reuters) – Chinese property developer CIFI Holdings Group Co Ltd on Friday forecast a loss for 2022, as a crisis in the country’s property market battered demand for new homes.
The Shanghai-based company expects to post a core net loss of between 5.10 billion yuan ($734 million) and 5.60 billion yuan for the year ended Dec. 31, 2022, compared to a profit of 7.28 billion yuan recorded a year earlier.
The Hong Kong-listed firm also said on Friday it had formulated a solution to its current “offshore liquidity situation” and expects to provide some upfront payments to creditors.
The company had suspended payments on all of its offshore debt in November after it failed to reach an agreement with creditors who are owed a combined $414 million.
“The holistic solution may contain an option for some or all creditors to voluntarily convert a proportion of their debt to equity or convertible bonds in the company,” it said.
In February, Reuters reported that Cifi was having difficulty in finding domestic buyers for new debt despite state-backing for the issue.
Shares in CIFI have tanked nearly 90% in the past year.
On Thursday, long-delayed results from Kaisa Group showed a 12.7 billion yuan net loss for 2021 as well as a 7.7 billion yuan loss for the first half of last year.
($1 = 6.9510 Chinese yuan renminbi)
(Reporting by Jaskiran Singh in Bengaluru; Editing by Anil D’Silva and Sriraj Kalluvila)