In China, the real estate market continues to struggle, with the real estate developer Sunac China Holdings Ltd reporting a 54% year-on-year decrease in contract sales amount for November; and a cumulative 42.7% drop in contract sales amount for the first 11 months of the year.
According to the announcement made by Sunac China (01918.HK) on November 5th on the Hong Kong Stock Exchange, the group achieved a contract sales amount of approximately 1.61 billion yuan in November 2024, showing a 54% decline compared to the same period the previous year when the contract sales amount was around 3.5 billion yuan.
By the end of November 2024, the group had accumulated a total contract sales amount of around 45.39 billion yuan, reflecting a 42.7% year-on-year decrease compared to the same period in 2023, when the contract sales amount for the first 11 months was about 79.28 billion yuan.
Earlier, Sunac China’s interim report revealed that, as of the first half of the year, the company had a total interest-bearing debt of 277.43 billion yuan. In terms of the maturity of interest-bearing debt, there were 193.49 billion yuan due within one year, 730.5 billion yuan due within one to five years, and 108.9 billion yuan due after five years.
To alleviate the debt pressure, on November 14th, Sunac China officially announced a preliminary plan for a second domestic debt restructuring. The announcement stated that considering the current operating situation of Sunac Real Estate, a preliminary plan was proposed to provide debt holders with an overall debt restructuring scheme, which includes options such as cash tender offer, share and/or stock-based economic benefits redemption, debt-to-equity swap, and a full extension of the maturity date, with an overall size exceeding billions of yuan.
Additionally, according to information from Tianyancha, there are over 430 entries of enforced execution information related to Sunac, with the total amount of enforced execution reaching over 51.7 billion yuan.