Shanghai-based Yuzhou Group Holdings on Wednesday forecast a massive annual loss, as a severe slowdown in China's real estate sector hurt its operations.
Yuzhou is the latest in a series of Chinese property developers that have flagged hefty losses for 2022, hurt by a combination of plummeting demand for new homes, steep cost jumps and repeated COVID-19 lockdowns.
Chinese developers are also facing an unprecedented liquidity squeeze due to years of regulatory curbs on borrowing, leading to a string of offshore debt defaults, credit-rating downgrades and sell-offs in developers' shares and bonds.
For the year ended Dec 31, 2022, Yuzhou is expected to record an attributable loss of 12 billion yuan (US$1.74 billion), compared with a profit of 862 million yuan posted a year earlier.
It is also set to post revenue of 26.74 billion yuan for the year, down 1.2 per cent from 27.07 billion a year earlier.
Shares of Yuzhou have fallen more than 35 per cent in the past year. They hit a record low in October last year.