(Yicai) March 28 -- After domestic and overseas debt restructuring, real estate developer Sunac China Holdings’ net loss shrank by 71 percent to CNY8 billion (USD1.1 billion) last year. The company’s shares rose.

Last year, Sunac completed two repayments of its onshore bonds that were rolled over in 2022 and completed debt restructuring in the overseas open market, reducing debt pressure by more than USD4.5 billion, the Tianjin-based firm’s annual earnings report showed today.

The company is also continuing to promote the delivery of new developments, and its real estate sales revenue increased by 91 percent from the prior year to CNY140.4 billion (USD19.4 billion) in 2023. Revenue was CNY154.2 billion, up 59 percent.

After experiencing a total loss of CNY65.9 billion (USD9.1 billion) in 2021 and 2022, as of the end of last year Sunac’s current and non-current loans were CNY18.12 billion and CNY96.6 billion respectively, the outstanding loan principal was CNY116.7 billion, and the cash balance was CNY24.6 billion.

Sunac’s shares [HKG: 1918] closed up 0.9 percent at HKD1.12 (16 US cents) each in Hong Kong today. The stock has fallen about 45 percent in the past 12 months.

Sunac said that it will continue to communicate with creditors on debt problems and potential debt pressure this year. It will also deepen communication and cooperation with core financial institutions, resolve debt risks, and use new financing support policies in the industry.

Chairman Sun Hongbin said that China’s central government is expected to adopt more active monetary and fiscal policies to stabilize economic development this year, including policies to support the healthy development of the real estate industry. This will help Sunac to strengthen long-term confidence, promote the delivery of buildings, resolve debt risks, and return to healthy development, he said.

Regarding Sunac’s financial report, the auditor BDO Hong Kong stated that it does not have any opinion on the consolidated financial statements because of a number of uncertainties related to continuing operations and their potential impact.

Editor: Tom Litting