Property developer Country Garden’s unit forecasts higher annual earnings

(Reuters) - Country Garden (HK:2007) Services, the property services arm of China’s Country Garden, on Friday forecast a higher full-year profit on the back of lower impairment charges.

The property services arm expects a net profit attributable between 1.60 billion yuan ($221.03 million) and 2 billion yuan for fiscal 2024 ended December, compared with 292.3 million yuan a year earlier.

Country Garden Services said it benefited from optimising some businesses it had acquired previously that led to lower impairment charges for the year ended 2024.

The company is scheduled to publish its fiscal 2024 results on March 27.

Its parent company Country Garden and a string of other real estate developers defaulted on debt repayment obligations over the past three years that affected China’s economically crucial property sector and forced Beijing to announce support measures.

Once a top developer by sales, Country Garden said earlier this year it proposed a deal to its offshore creditors to cut its debt by $11.6 billion.

In January this year, the debt-laden property builder said it expected to post a smaller annual loss in 2024 after reporting a record 178.4 billion yuan loss in 2023.

($1 = 7.2389 Chinese yuan renminbi)

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