Chinese property developer Kaisa forecasts loss of up to about $2 billion

Embattled Chinese property developer Kaisa Group Holdings on Friday forecast a net loss of 12 billion yuan to 14 billion yuan ($2.04 billion) for fiscal 2022, as delivery delays hurt its sales.

The Shenzhen-based company earlier this month, published its long-delayed results for fiscal 2021 in which it reported a loss of 13.26 billion yuan.

Property firms in China over the last couple of years have struggled to complete their projects owing to a severe cash crunch and have seen deliveries being delayed with the pandemic adding to woes.

Kaisa was among the first developers to default in the debt crisis that has engulfed much of the Chinese property sector since mid-2021. It also has the dubious distinction of being the first Chinese real estate developer to have defaulted on dollar bonds, which occurred in 2015.

The company, which saw its shares collapse nearly 37 per cent since they resumed trading earlier this month after a year long suspension, is currently in the process of restructuring its debt. It is saddled with $12 billion in offshore debt.

Kaisa said on Friday it sees a core loss attributable in the range of 3.5 billion yuan to 5.5 billion yuan in fiscal 2022.

($1 = 6.8705 Chinese yuan renminbi)