Mar 31, 2023
Builder CIFI Tells Investors It Will Delay Issuing 2022 Results
(Bloomberg) -- Chinese builder CIFI Holdings Group Co. told investors it can’t publish its 2022 results by Friday as previously scheduled, according to people familiar with the matter, a further sign of stress at the company.
The Shanghai-based developer said that more audit work is needed for related-party transactions with property management affiliate CIFI Ever Sunshine Services, according to investors informed about the delay, who asked not to be named because the matter is private.
CIFI didn’t respond to a Bloomberg query seeking comments on the trading halt and results delay.
The development underscores the challenge CIFI faces, even after it secured support to sell state-guaranteed bonds last year. Things took a turn in October when it defaulted on offshore debt just weeks after issuing a government-backed bond, denting investor faith.
The Chinese developer is scheduled to hold a board meeting to approve full-year results on March 31, the deadline required by the Hong Kong stock exchange.
Both CIFI and the property management affiliate suspended trading on Friday. CIFI said the move was due to pending inside information, while the latter said it’s still in the process of auditing 2022 results.
CIFI has been considering maturity extensions on some or all of its onshore notes, with potential options including two-year extensions, Bloomberg reported earlier this week. The developer has yet to complete its sale of a second state-guaranteed bond first unveiled in January, when China Bond Insurance Co. offered to guarantee as much as 1.5 billion yuan ($219 million) of onshore notes.
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