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Kaisa warns of 'substantial decline' in FY14 earnings
TROUBLED Chinese property developer Kaisa Group Holdings on Tuesday warned that is likely to report a slump in FY14 earnings compared to the previous year.
"The board wishes to inform the shareholders of the company and the potential investors that, based on a preliminary review of the financial information that is currently available to the management of the company, it is expected that the group will experience a substantial decline in its consolidated net profit attributable to owners of the company for the year ended 31 December 2014 as compared with the year ended 31 December 2013," it said in a filing to Singapore Exchange.
Last week, it disclosed that its debts totalled more than US$10 billion and said it needed to urgently restructure its borrowings in order for a proposed rescue deal (by way of a conditional mandatory cash offer) from Sunac China Holdings to proceed.
Kaisa's shares are listed on the Hong Kong Stock Exchange, but it has bonds which are traded in Singapore. Last month, it failed to make a US$26 million interest payment on its bonds due to mature in 2020.