China Jishan plans to launch Chinese property pre-sales this weekend

MAINBOARD-LISTED textile company China Jishan Holdings plans to launch pre-sales for a property project in the Chinese city of Shaoxing "on or around" Saturday.

The residential and commercial development by an indirect, wholly-owned subsidiary could yield pre-sales of between 500 million yuan (S$98.3 million) and one billion yuan in the second half of 2020, the board told shareholders in a bourse filing on Friday afternoon.

But China Jishan added that any such funds, should they materialise, would not affect the profit and loss or net tangible assets of the group for the financial year to Dec 31, 2020.

Pre-sales will be recognised in the profit and loss statements only when the properties have been completed and delivered to buyers, which will likely take place in 2023, the board said.

China Jishan also warned that its pre-sales may not be successful, and there is no guarantee that the project will be finished on time or turn a profit.

"This is the group's opportunistic and first foray into real estate development in the People's Republic of China, and the group does not have any track record or prior experience in real estate development," the board stressed in its announcement.

Separately, the group has reported a net loss of 12.3 million yuan for the three months to June 30, compared with a profit of 3.74 million yuan in the same period the year before.

The losses came on the back of swelling sales and marketing, administrative and finance costs, as well as an 8.5 per cent decline in revenue, to 8.63 million yuan on lower rental income.

Trading in China Jishan shares has been suspended since July 15, as the company could not demonstrate its ability to continue as a going concern to the bourse operator by that deadline.