Recently, the Xiangsheng Holdings, a Chinese real estate group, failed to publish its mid-year and annual financial performance for 2023 before the deadline for resumption of trading, leading to its delisting by the Hong Kong Stock Exchange.
According to an announcement made by Xiangsheng Holdings (Group) Limited on the evening of October 2nd, in accordance with the resumption guidelines, the company was required to meet all resumption guidelines by October 2, 2024 (resumption deadline), including publishing all financial performance as per the listing rules that had not yet been disclosed and handling audit revisions. They also needed to provide evidence that the company had complied with section 13.24 of the listing rules.
Although the company had released its 2022 annual financial performance on January 31, 2024, it failed to do so for the mid-year and annual financial performance for 2023 before the resumption deadline. An announcement regarding the further details of its delisting status will be made by the company at an appropriate time. Trading of the company’s shares was suspended on the Hong Kong Stock Exchange starting from 9 a.m. on April 3, 2023, and will remain suspended.
Xiangsheng Holdings Group had its shares temporarily suspended from trading on April 3, 2023, due to its failure to publish the 2022 annual report within the specified timeframe by the Hong Kong Stock Exchange.
The announcement mentioned that due to the ongoing deep adjustments in the real estate industry and the limited financing channels for Chinese real estate developers, the group had taken appropriate measures to stabilize its cash flow, including accelerating sales and cash collection, asset sales, cost reduction, operational efficiency enhancement, and restructuring its debts through dialogue with its creditors.
Despite facing unprecedented challenges and the suspension of its shares, the group’s operations have continued as normal in all significant aspects.
On September 4th, Xiangsheng Holdings Group released unaudited operational data for August this year.
The data showed that in August, Xiangsheng Holdings achieved contract sales of approximately 181 million yuan; the contract construction area was around 13,937 square meters, with an average contract selling price of about 12,962 yuan per square meter. The total contract sales in the period from January to August amounted to approximately 2.627 billion yuan, representing a significant decrease of 75.25% compared to the sales in the same period last year.
Information on the official website revealed that Xiangsheng Group was established in the early 1980s with its headquarters located in Hangzhou, Zhejiang. Over more than 30 years of development, Xiangsheng has evolved into a diversified and modern industrial group integrating real estate development, characteristic towns, building installation, property services, hotel tourism, and other business sectors. Its operations span over 50 cities in more than 20 provinces including Shanghai, Zhejiang, Jiangsu, Anhui, Jiangxi, Hubei, Hunan, Fujian, Guizhou, Liaoning, and Shandong.
In 2018, Xiangsheng Group emerged as a dark horse in the Chinese real estate industry, surpassing one hundred billion yuan in sales and securing a position among the top 30 real estate companies nationwide.