(Yicai) March 20 -- Gemdale will be able to meet its bond repayment obligations in the first three months after the heavily indebted Chinese developer was able to secure two bank loans totalling CNY6.5 billion (USD900 million), China Securities Journal reported.

Gemdale has paid off the principal and interest on a bond that fell due on March 22, amounting to CNY1.13 billion (USD157 million), the report said. The Shenzhen-based company has already repaid two other bonds worth a combined CNY3.5 billion in the past month.

And there is another medium-term note whose principal and interest amount to CNY1.5 billion (USD208 million) that matures on March 24 and these funds are also ready, the developer said. Gemdale expects to successfully repay all public bonds in the first quarter.

On top of this, Gemdale still has 10 yuan-denominated bonds worth CNY13.8 billion (USD1.9 billion) that are outstanding, according to Wind data. Seven of these, amounting to CNY8.2 billion, are due within the next 12 months, so the firm remains under considerable pressure.

Operations are stable and the timely and full repayment of debt remains a priority, Gemdale said. The company will continue to operate prudently.

Dragged down by the sluggish real estate market, Gemdale’s net profit plunged 85.4 percent in 2023 from a year earlier to CNY888 million (USD120 million), while revenue slumped 18.4 percent to CNY98.1 billion (USD13.6 billion), according to its latest earnings report released on March 14.

Gemdale’s share price [SHA: 600383] closed up 0.5 percent at CNY4.02 (USD0.56) apiece today.

Editor: Kim Taylor