Auditor Questions Survival as Distressed Developer Sunac Posts $1.8 Billion Loss
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Sunac, ranked as China’s third-largest developer by sales in 2021, is now in a precarious fight for survival
Sunac China Holdings Ltd., once one of China’s top-selling property developers, reported a net loss of 12.8 billion yuan ($1.8 billion) for the first half as its auditor cast serious doubt about the company’s ability to continue operating.
In its interim report released Tuesday, the Tianjin-based developer said its revenue for the six-month period fell 41.7% year-on-year to 19.99 billion yuan. The net loss, however, narrowed by 14.4% from the same period a year earlier.
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- Sunac China reported a net loss of 12.8 billion yuan ($1.8 billion) for H1 2023 as revenue fell 41.7% year-on-year.
- The company faces severe liquidity issues, with 254.82 billion yuan in borrowings (217.1 billion yuan due within a year) and only 18.63 billion yuan in cash.
- Its auditor issued a warning about Sunac's ability to continue, citing reliance on successful debt restructuring and property market recovery.
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Who’s Who
- Sunac China Holdings Ltd.
- Sunac China Holdings Ltd., a prominent Chinese property developer, reported a net loss of 12.8 billion yuan ($1.8 billion) for the first half of the year. Its auditor expressed serious doubts about the company's ability to continue operations due to material uncertainties. The company is actively pursuing debt restructuring plans amid a severe liquidity crisis and a winding-up petition.
- China Cinda (HK) Asset Management Co. Ltd.
- "China Cinda (HK) Asset Management Co. Ltd." (中信国际资产管理有限公司) is an entity that filed a winding-up petition against Sunac China Holdings Ltd. over a $30 million loan plus interest. This petition, filed in January, contributes to the complex debt restructuring efforts Sunac is currently undertaking.
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What Happened When
- 2019：
- Sunac China Holdings Ltd. posted net profits of 26 billion yuan.
- 2020：
- Sunac posted net profits of 39.55 billion yuan.
- Late 2021：
- The property sector downturn triggered a cash-flow crisis for Sunac.
- Since 2021：
- Sunac has posted annual losses every year.
- First half of 2022：
- Sunac experienced a public default.
- January 2025：
- A winding-up petition was filed in Hong Kong by China Cinda (HK) Asset Management Co. Ltd. over a $30 million loan plus interest.
- January 22, 2025：
- Sunac announced completion of a second restructuring of its domestic debt.
- April 17, 2025：
- Sunac unveiled an offshore debt restructuring proposal.
- First half of 2025：
- Sunac reported a net loss of 12.8 billion yuan, with revenue falling 41.7% year-on-year.
- As of June 30, 2025：
- Sunac's total borrowings stood at nearly 254.82 billion yuan; cash and cash equivalents totaled just 18.63 billion yuan.
- As of 2025：
- Sunac had 117.86 billion yuan in overdue loan principal and was facing about 455 lawsuits with claims totaling 166.38 billion yuan.
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