KWG’s August sales plunge as offshore debt restructuring advances
Property developer KWG Group Holdings Ltd. (1813.HK) said on Tuesday that presales by the company, its joint ventures and associates fell 73.6% year-on-year to 161 million yuan ($24 million) in August. Its presold gross floor area dropped 62.9% to about 9,200 square meters, underscoring continued weakness in China’s property market.
On the debt front, KWG said on Monday that its offshore debt restructuring was making further progress. As of Sept. 7, about 75.47% of its creditors had joined or agreed to join its restructuring agreement. The company also extended its basic consent fee deadline to Sept. 28 to give remaining creditors more time to complete internal approval procedures.
The company’s revenue fell 50.4% year-on-year to 1.88 billion yuan in the first half of this year, while its loss widened 24.5% to 2.56 billion yuan. Revenue from property development fell about 60% to 1.23 billion yuan, mainly due to a decline in delivered gross floor area.
The company’s shares opened flat on Wednesday and were unchanged at HK$0.096 by the midday break. The stock has fallen 35.57% so far this year.
By Lee Shih Ta
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