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Country Garden Services, the property services division of China's Country Garden, recently forecasted an increased net profit for the fiscal year 2024, attributing this growth to lower impairment charges. The company expected a net profit ranging between 1.60 billion yuan (USD 221.03 million) and 2 billion yuan for the period ended December 2024, a notable rise from 292.3 million yuan recorded the previous year. This improvement was largely credited to the optimisation of previously acquired businesses, resulting in decreased impairment costs. Meanwhile, its parent company, Country Garden, proposed a restructuring deal to its offshore creditors aimed at reducing its debt burden by USD 11.6 billion. Additionally, in January, the debt-laden firm indicated it expected a smaller annual loss for 2024, following a record loss of 178.4 billion yuan in 2023.
Country Garden Services, the property services subsidiary of China's Country Garden, forecasted a higher full-year profit earlier this week, driven by lower impairment charges. Advertisement
The property services arm anticipated a net profit attributable between 1.60 billion yuan (USD 221.03 million) and 2 billion yuan for fiscal 2024, which ended in December, in comparison to 292.3 million yuan reported a year earlier.
Representatives from Country Garden Services explained that the company had benefited from optimising certain businesses it had acquired previously, which resulted in reduced impairment charges for the year ended 2024.
The firm has scheduled the publication of its fiscal 2024 results for later this month.
Meanwhile, the parent company, Country Garden, along with several other real estate developers, defaulted on debt repayment obligations over the past three years. This situation had a significant impact on China's economically crucial property sector and led Beijing to announce several support measures to stabilise the market.
Once recognised as a top developer by sales, Country Garden mentioned earlier this year that it had proposed a restructuring agreement to its offshore creditors, aimed at reducing its debt by USD 11.6 billion. Additionally, Country Garden stated in January that it expected to report a smaller annual loss for 2024, following a record loss of 178.4 billion yuan in 2023.
Country Garden Services' optimistic profit forecast highlights a potential turning point for the company. While the property services division is demonstrating signs of recovery, the broader challenges facing its parent company, Country Garden, and China's real estate sector remain significant. Market watchers will be observing the company's fiscal 2024 results, due later this month, to gauge the effectiveness of its strategic initiatives in navigating a complex economic environment.
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