Country Garden Services Expects 30% Profit Drop as Property Downturn Drags On
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What’s new: Country Garden Services Holdings Co. Ltd., China's largest residential property manager, forecasts a drop of more than 30% in net profit for the first half of the year as the real estate downturn continues to erode business.
Country Garden Services expects a slight increase in first-half revenue, projecting it to reach between 20.9 billion yuan and 21.2 billion yuan ($2.9 billion and $2.95 billion), up from 20.7 billion yuan a year ago. However, the company anticipates a significant drop in net profit, estimating it will fall to between 1.36 billion yuan and 1.55 billion yuan, down from last year’s 2.35 billion yuan.
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- Country Garden Services, China's largest residential property manager, forecasts a net profit drop of over 30% for the first half of the year due to the ongoing real estate downturn.
- First-half revenue is expected to slightly increase to between 20.9 billion and 21.2 billion yuan, but net profit is anticipated to fall to 1.36-1.55 billion yuan from 2.35 billion yuan last year.
- Despite revenue growth, the company has faced a significant net profit decline, and in 2023, posted a net profit decrease of 85% to 292 million yuan due to the property market crisis.
- Country Garden Services Holdings Co. Ltd.
- Country Garden Services Holdings Co. Ltd. is China’s largest residential property manager. It forecasts a net profit drop of over 30% in the first half of the year due to a real estate downturn. Despite a slight revenue increase to around 21 billion yuan, net profit is estimated to fall to between 1.36 billion and 1.55 billion yuan. Established in 1992, it was spun off from Country Garden Holdings in 2018 and controlled by Yang Huiyan.
- Country Garden Holdings Co. Ltd.
- Country Garden Holdings Co. Ltd. is China's largest homebuilder, established in 1992. It previously included the property management unit now known as Country Garden Services Holdings Co. Ltd., which was spun off in 2018. Both companies are controlled by Yang Huiyan. Due to a debt crisis, Country Garden's financial difficulties have impacted Country Garden Services, resulting in significant impairment provisions.
- Synergy Solution Management Group
- Synergy Solution Management Group is mentioned in the article in the context of a statement from its co-founder, Dennis Huang. The company appears to specialize in management consulting, as Huang provides insights on the financial challenges property management firms face, particularly when affiliated real estate companies struggle to meet financial commitments. No additional details about the company are provided in the article.
- Established in 1992：
- Country Garden Services was initially the property management unit of Country Garden Holdings Co. Ltd.
- 2018：
- Country Garden Services was spun off from Country Garden Holdings Co. Ltd. for an independent listing.
- 2022：
- Country Garden Services' net profit started to narrow despite growing revenues.
- 2023：
- Country Garden Services posted 3% revenue growth to 42.6 billion yuan while net profit shrank 85% to 292 million yuan.
- 2023：
- Country Garden Services booked 3.1 billion yuan in impairment provision after Country Garden’s debt crisis deepened.
- First half of 2024：
- Country Garden Services forecasts a drop of more than 30% in net profit.
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