Sunac’s shares plunge as another cash-strapped Chinese developer says it won’t make March 31 results reporting deadline
- The Beijing-based home builder said it will not be able to meet the deadline because the auditing work on its finances has yet to be completed
- A slew of developers are unable to meet the deadline amid disruption to the audit process caused by Covid-19 and changes in China’s property landscape
Cash-strapped Sunac China Holdings’ shares tumbled by almost a fifth after the Chinese developer said it would delay publishing its 2021 results and suspend share trading.
In a filing to the stock exchange on Monday night, Sunac said it is in the process of talking to its offshore creditors and is proposing to extend the maturity of a yuan-denominated bond. It cited these as the reasons for failing to meet the deadline.
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Sunac, founded by chairman Sun Hongbin in 2003, has some US$1.9 billion of offshore bonds, 21 billion yuan (US$3.3 billion) of onshore bonds and sizeable nonbank borrowings due by June 2023, according to Moody’s.
The company’s mainland arm is facing “periodic liquidity difficulties in the near future” and expects that it will not be able to raise sufficient funds to repay the two bonds by their due dates, according to a filing to the Shanghai Stock Exchange on Friday.