Is Chinese developer Glorious Property really in a bad shape, or is it all a ploy?

It might be a splendid time for Chinese developers in big cities like Beijing and Shanghai currently witnessing a real estate revival, but not so for Glorious Property. Not at least on paper.

Controlled by billionaire Zhang Zhirong, Shanghai-based Glorious has come a long way from being among the Top 50 Chinese developers to one reporting its second consecutive year of massive losses and failing to repay debts. That, however, has not deterred the company from trying to go private, which, analysts say, is part of its apparent problems.

The developer’s losses last year widened to 3.9 billion yuan. It also missed debt repayments amounting to 4 billion yuan last year, showed its annual results, which were postponed to April 15. External auditor PwC has refused to give its opinion on Glorious’ 2015 financial statement.

But its mounting losses and liquidity crunch have left the market confused as China’s property sector overall has been on a recovery path since the second half of last year, especially in the builder’s hometown of Shanghai.

“Theoretically, it can repay the money as it has some good projects,” said Christopher Yip, property analyst at Standard & Poor’s.