Country Garden, China’s biggest developer, ‘deeply sorry’ as profits tumble 96 per cent amid struggling property market

‘We are facing a bitter winter that we have never seen in the history of China housing,’ says chief executive officer Mo Bin

It was the sharpest decline since the company listed its shares in Hong Kong in 2007

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The Foshan-based company reported net profit of US$4.2 billion in the six months ended June 30, down 96 per cent from a year earlier. Photo: Bloomberg

Published: 7:45pm, 30 Aug 2022Updated: 10:07pm, 30 Aug 2022

China’s biggest home seller, Country Garden Holdings, has apologised after reporting the worst half-year performance in its history as a listed company.

The Foshan-based company reported a net profit of 612 million yuan (US$88.7 million) in the six months ended June 30, down 96 per cent from a year earlier. That is the sharpest decline since the company listed its shares in 2007, according to a filing to the Hong Kong stock exchange on Tuesday.

The developer’s boss struck a gloomy tone about the immediate prospects for a recovery in China’s beleaguered housing market. However, he believes things could turn around next summer.

“We are facing a bitter winter that we have never seen in the history of China housing and the turbulence has gone beyond our expectation,” said chief executive officer Mo Bin.

“We are deeply sorry to our investors about the poor performance, and our management team will rethink and review profoundly.

Country Garden Holdings CEO Mo Bin pictured in August 2018. Photo: Nora Tam

“We believe that now the real estate industry is already at the bottom and we’ve seen some recovery already. There is still uncertainty about how long it will take to recover, but we believe by June next year, we could see the housing sector back on a healthy track.”