By WANG Yuhan
China South City Holdings issued a notice Monday on the Hong Kong Stock Exchange, stating that, in a deteriorating real-estate industry, the company has encountered and anticipates continued challenges in terms of funds.
The announcement reveals that, in addition to an undelivered USD bond interest payment due in November, the company currently has domestic loans of around 500 million yuan (US$70 million) due in December.
Next year, the company will face the redemption of five USD bonds, amounting to a total of US$1.2 billion. These bonds were already extended once, in August 2022. If an agreement for another extension cannot be reached, the company will face considerable pressure in the coming year.
China South City was established in May 2002 in Hong Kong and went public there in 2009. It is a trade and logistics enterprise with business including wholesale markets, warehousing and property management. The majority of revenue comes from property sales, with a focus on residences.
According to the latest performance report, China South City’s half-year gross profit was HK$447 million (US$57 million, 410 million yuan), a year-on-year decrease of 49.8 percent. China South City’s total interest-bearing debt stands at around HK$32 billion.
