Developers to Miss Deadlines; Shimao Drops: Evergrande Update By Bloomberg

(Bloomberg) — China Evergrande Group became the latest Chinese developer to warn that it would probably miss deadlines for reporting audited 2021 results due this month.

Sunac China Holdings Ltd. and Shimao Group Holdings Ltd. also announced delays as both blamed the latest Covid-19 wave in China. Sunac’s dollar bonds fell, with the two firms among leading decliners on a Bloomberg Intelligence gauge of developer shares. Hong Kong-listed property firms face a March 31 deadline to file annual results.

Evergrande’s shares remain suspended. The debt-saddled developer and its financial advisers will hold an investor call Tuesday. The builder told creditors in January it aimed to issue a preliminary restructuring plan in the subsequent six months.

Key Developments:

• China Evergrande Is Said to Hold Investor Call Amid Trading Halt
• Sunac Bonds, Shares Slide as Audited Results to Be Delayed
• China Developers Sunac, Shimao to Also Miss Earnings Deadline
• Evergrande and Its Units to Delay Issuing FY Audited Results
• Agile, Logan, Fantasia to Announce FY Results March 31
• Ronshine China Approves Elite Partners CPA as New Auditor
• Evergrande May Hold Bond Talks After Onshore Deal: Credit React
• Sunac’s 85% Profit Slump to Drag On With Tight Liquidity: React
• Zhenro Properties to Issue $728.6m 2023 Bond After Swap Offer

China Evergrande Said to Hold Investor Call Amid Trading Halt (10:26 a.m. HK)

China Evergrande Group and its financial advisers will hold an investor call Tuesday after it announced a likely delay in audited 2021 results and had trading halted in its shares and onshore bonds.

The call is to start at 9 p.m. Hong Kong time, according to two investors who received the invitation and asked not to be named in discussing the private information. The firm didn’t immediately have a comment when reached by Bloomberg. 

Sunac Bonds, Shares Slide as Audited Results to Be Delayed (10:03 a.m. HK)

Sunac dollar and onshore bonds fell sharply Tuesday morning after it said it likely won’t release audited 2021 results this month, while a yuan note halted trading.

The firm’s 6.8% yuan bond due 2023 halted trading after it fell 21.9%.

Evergrande Joins China Developers Set to Miss Earnings Deadline (9:18 a.m. HK)

Evergrande and its two Hong Kong-listed units expect to delay publishing the results by March 31 because audit work hasn’t been completed, a stock exchange filing showed Tuesday. Sunac and Shimao issued similar statements Monday night.

Evergrande said “drastic changes” in the operating environment added to audit procedures. Shimao and Sunac plan to release unaudited 2021 results on March 31. Evergrande said it will publish audited results “as soon as practicable” after audit procedures are completed. 

Chinese property firms listed in Hong Kong face a March 31 deadline to file annual results, their first audited financial statements since the industry’s liquidity crisis spread. Transparency and governance concerns have cropped up alongside worries about developers’ ability to repay debt following a record number of defaults last year. 

Evergrande Services to Probe 13.4b Pledge Guarantees (8:45 a.m. HK)

Evergrande Property Services Group has found that deposits of about 13.4 billion yuan ($2.1 billion) as security for third-party pledge guarantees had been enforced by the relevant banks, it said in a filing to the Hong Kong stock exchange. 

The company will establish an independent investigation committee and arrange for experts to be appointed to investigate the pledge guarantees, it said.

Logan Gets Bondholders’ Approval to Boost Upfront Payment (8:14 a.m. HK)

Shenzhen Logan won approval from bond holders to boost upfront payment of local debt to 10%, according to a statement to the Shenzhen Stock Exchange. 

Sunac China Says Year Profit to Decrease by About 85% (7:00 a.m. HK)

Sunac and its subsidiaries said they see a decrease in profit attributable to owners of the company of approximately 85% year-on-year and a core net profit decline of about 50% compared with a year earlier. It cited “challenging conditions in the real estate industry during the second half of last year” as among the reasons for the drop. 

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