Property crisis pummels Chinese developers’ bottom lines

CHINESE developers reported barrels of red ink for 2022, amid an unprecedented property slump and a crisis of confidence that hurt firms’ home sales and squeezed their financing.

As at Apr 6, among the 50 publicly-traded Chinese real estate companies that have released their 2022 earnings, 24 firms saw their net income decline, while 16 recorded losses. Among those, six saw their deficits exceed 10 billion yuan (S$1.93 billion), according to data from Wind Information.

The worst performer was Sunac China Holdings, the country’s 11th largest developer by sales. The company was 27.7 billion yuan in the red in 2022, its second straight year of losses.