Hong Kong Stock Market | SUNAC drops more than 7%, expected to report a net loss of 15-16 billion yuan in the first half of the year, plans to sell 3 projects for 1.23 billion yuan.

According to Dolphin Research APP, SUNAC (01918) fell more than 7%. As of the time of writing, it has dropped 5.41% to HKD 1.05, with a turnover of HKD 10.71 million.

In terms of news, SUNAC has issued a profit warning, expecting a loss of RMB 15 billion to RMB 16 billion for the six months ending June 30, 2023 (compared to a loss of approximately RMB 18.76 billion for the same period in 2022). The announcement stated that the loss is mainly due to the downturn in the real estate market, less revenue recognized during this period, lower gross profit margin of the property projects recognized, and expected net exchange losses caused by foreign exchange fluctuations.

In addition, on the evening of August 17, SUNAC announced that in order to resolve the debt repayment issue of Rongfeng Company, the company will sell three projects, namely Zhenhua Mansion, Wangjinsha Hotel, and Hefei Showroom, with a total amount of approximately RMB 1.23 billion. At the same time, there are reports that SUNAC is actively responding to changes in the real estate industry and implementing cost reduction and efficiency improvement measures. Currently, it is considering relocating some functional departments to Tianjin.