Shimao Group Holdings Ltd. posted a combined loss of 48.6 billion yuan ($6.8 billion) for 2021 and 2022 as the defaulted Chinese property developer released its long-delayed results in a bid to resume stock trading and complete debt restructurings.
(Bloomberg) — Shimao Group Holdings Ltd. posted a combined loss of 48.6 billion yuan ($6.8 billion) for 2021 and 2022 as the defaulted Chinese property developer released its long-delayed results in a bid to resume stock trading and complete debt restructurings.
The company reported a loss attributable to shareholders of 21.5 billion yuan for the full year of 2022, nearly double the 11.6 billion yuan expected by analysts surveyed by Bloomberg, according to Hong Kong exchange filings Friday. That adds to a 27.1 billion yuan loss the previous year.
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The troubled developer said it will resume trading on July 31 as it rushed to announce delayed earnings to meet a deadline by the end of September. Shimao’s shares have been halted since last April after it failed to publish unaudited annual results. According to Hong Kong stock exchange rules, delisting is possible if suspensions last 18 months. Bigger rival China Evergrande Group released delayed results earlier this month.
“If Shimao doesn’t file in time, that would block a resumption of trading in its shares and create hurdles for its debt restructuring,” Bloomberg Intelligence analysts Kristy Hung and Lisa Zhou wrote in note ahead of the earnings release.
Earlier this month, a $1.8 billion project by Shimao failed to find a buyer at a forced auction, underscoring its difficulties liquidating assets amid a weakening property market.
Shimao hasn’t presented a restructuring proposal since defaulting on a dollar note in July last year. The developer said this month it is working with the advisers of the ad hoc group of dollar-bond holders.
The company said in its 2022 annual report that it’s been “actively pushing forward” the proposed restructuring of its offshore debt, including approximately $6.8 billion of senior notes and $2.1 billion of various borrowings from offshore banks and financial institutions.
–With assistance from Danny Lee and Alice Huang.
(Updates with more details.)
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