Sunac, the Hong Kong-listed real estate developer led by billionaire Sun Hongbin, said the company could publish the unaudited annual effects of 2021 on time and suspend stock trading on April 1, according to a stock market report released on Monday.
The suffering builder joins a wave of suffering real estate companies, including Sinic, China Evergrande, Kaisa Group and Shimao Group, to delay their financial reporting. Sunac this time cited reasons such as problems with overseas lending and the proposal to enlarge some on land. bonds, following an initial warning of delay last week. The company said it could publish the audited annual effects on time due to Covid-19 restrictions, which it said are postponing on-site interviews and document verification.
The company’s shares fell nearly 20% on Tuesday, as investors scrambled to exit. Like many of its peers, Sunac suffers from diminished access to money and the gigantic debts accumulated by the immediate expansion of recent years.
The company is negotiating with its creditors and is looking to increase its onshore bonds to 4. 75 percent of the four billion yuan ($627. 4 million) and 7 percent of the 2 billion yuan ($313. 7 billion) owed in April. A multimillion-dollar plan inicial. al that provides an unlimited joint liability guarantee is submitted, according to a document filed with the Shanghai Stock Exchange. price in the beyond 12 months.
The company, in fact, has a total of $2. 7 billion in onshore and overseas bonds maturing this year, according to Fitch Ratings. ” in debt payments abroad.
“We, Sunac cannot access capital markets on land and abroad, but we rely on domestic monetary resources, income from contract sales, and significant asset disposals to meet the maturities of its debt in 2022,” Fitch wrote.
But the company issued its own profit warning in January, warning investors that profits for 2021 would fall 85% due to investment losses and lower sales. in contract sales registered a year ago.