It added it will consider debt management measures to cope with the remaining overseas debts coming due through the end of June next year, including negotiations with onshore banks on renewing and extending existing loans.
Country Garden said its revenue in the first half rose 40 per cent from a year earlier but its cost of sales surged 73 per cent, while total liabilities were unchanged from the end of 2022, at 1.4 trillion yuan.
Its total interest-bearing debts decreased to 257.9 billion yuan, of which 108.7 billion yuan would be due within 12 months, while it had total cash of 101.1 billion yuan.
“The company feels deeply remorseful for the unsatisfactory performance,” it said.
Some offshore creditors of Country Garden are in talks with a New York-based law firm and are considering options including legal ones, by forming a group if the company seeks to restructure its debt.
Kobre & Kim LLP told Reuters on Wednesday it had been in discussions with creditors interested in forming a group and weighing their options, including some specialised in distressed credit and experienced in using strategies to improve value in debt restructuring cases.
Country Garden shares closed down 3.3 per cent at HK$0.88 before the earnings announcement.
Early on Wednesday, Country Garden said it would issue HK$270 million (US$34.4 million) worth of new shares to an investment unit of Hong Kong-based manufacturer Kingboard Holdings, which would reduce its outstanding loan to the unit to HK$1.6 billion.
The company said the issue would help “preserve cash resources … and reduce the gearing level”. The new shares, representing 1.25 per cent of the enlarged share capital, would be issued at HK$0.77 each, a 15.4 per cent discount from Tuesday’s closing price.
Many Chinese developers have so far posted losses or drops in profit for the first half as nationwide sales soften.
State-backed China Resources Land told an earnings conference on Wednesday it expected the country’s home sales in the full year would be flat from last year or register a small decline, as demand was dropping long term. It added that the number of visitors to its sales showrooms continued to drop in August.
China Resources Land was one of the few developers that posted a rise in profit in the first half. Its net profit rose 30 per cent from a year earlier.