China’s real estate giant Country Garden announced a delay in the release of its 2023 annual performance and 2024 mid-year performance. A week later, the company released unaudited operational data. In August this year, Country Garden saw a significant drop in shareholder equity sales, with an 80% year-on-year decrease in sales for the first eight months. Similarly, Vanke’s financial report indicated a more than 30% drop in sales for the same period.
On September 5th, Country Garden Holdings Co., Ltd. released unaudited operational data for August. In August, Country Garden achieved shareholder equity sales of 3.43 billion yuan, a 57.02% decrease from the previous year’s 7.98 billion yuan. The sales area for shareholder equity was 350,000 square meters, down 57.83% from 830,000 square meters the year before.
Based on previous data, for the first seven months, Country Garden’s shareholder equity sales amounted to 25.51 billion yuan, with a sales area of 2.6 million square meters.
This indicates that the accumulated shareholder equity sales for the first eight months reached 28.94 billion yuan, an 80.55% decrease from the previous year’s 148.81 billion yuan. The accumulated sales area for shareholder equity was 2.901 million square meters, down 85% from 19.34 million square meters the year before.
On September 5th, Country Garden announced a plan to seek a six-month extension of the redemption responsibility for nine domestic debts until March next year. The estimated total amount of these nine domestic debts is nearly 15 billion yuan, with three bonds having been extended three times already.
Recent legal information from Tianyancha shows that Country Garden’s affiliated companies, Country Garden Real Estate Group Co., Ltd., Rizhao Qin Garden Real Estate Development Co., Ltd., and Linyi Country Garden Real Estate Development Co., Ltd., have added one execution information item, with an execution target of over 41.16 million yuan, and the executing court being Qingdao Laoshan District Court. The risk information reveals that Country Garden Real Estate Group Co., Ltd. currently has nine execution information items, with a total execution amount exceeding 220 million yuan. Moreover, the company also faces multiple restrictions on consumption orders, dishonest debtors (laolai), and frozen equities.
On September 6th, China Vanke Co., Ltd. released a briefing on August sales and recent new projects, indicating that in August, Vanke achieved a contract sales amount of 17.24 billion yuan, a 23.75% decrease from the previous year’s 22.61 billion yuan. The contract sales area was 1.227 million square meters, down 21.76% from 1.576 million square meters the year before.
From January to August, Vanke accumulated a contract sales amount of 163.78 billion yuan, a 34.12% decrease from the previous year’s 248.59 billion yuan. The contract sales area was 120.76 million square meters, down 25.66% from 162.45 million square meters the year before.
According to previous data, Vanke incurred a net loss of 8.521 billion yuan in the first half of the year, a 156.18% decrease year-on-year; attributable net loss was 9.852 billion yuan, a 199.82% decrease year-on-year.
Among the five real estate companies with sales exceeding one trillion yuan in the first half of this year, Vanke was the only one to incur a net loss.
In recent days, institutions such as CRIC, Kerui, and E-House Research Institute have released the top 100 real estate sales rankings for the first eight months of 2024.
According to CRIC data, the top 100 real estate companies achieved a total sales volume of 2.68324 trillion yuan in the first eight months of this year, a 38.5% decrease year-on-year, with a continuous narrowing of year-on-year decline for six consecutive months.
In the first eight months of this year, sales volumes for real estate companies in all camps have declined. The average sales volume for the top 10 real estate companies was 130.22 billion yuan, a 30.8% decrease year-on-year; for companies ranked 11-30, the average sales volume was 33.95 billion yuan, a 42.6% decrease year-on-year; for companies ranked 31-50, the average sales volume was 15.52 billion yuan, a 47.0% decrease year-on-year; and for companies ranked 51-100, the average sales volume was 7.83 billion yuan, a 45.2% decrease year-on-year.