Country Garden’s (COGARD) dollar bonds were up over 1.5 points yesterday and then saw a pullback across the curve today morning. The developer reported its March 2023 contracted sales figures that improved only slightly to ~RMB 25.01bn ($3.64bn) vs. February’s RMB 24.85bn ($3.61bn). However, looking at it on a yearly basis, it fell by 17% from RMB 30.11bn ($4.38bn). Late last week, COGARD posted a record net loss of RMB 6.1bn ($890mn) in 2022 vs. an RMB 26.8bn ($3.9bn) net profit in 2021. This came on the back of a rise in provisions for impairments on property projects and net foreign exchange losses. As of end-December 2022, its cash balances stood at RMB 147.6bn ($21.5bn). Total debt decreased to ~RMB 271.3bn ($39.4bn), a 14.7% decrease YoY. Also its net gearing ratio fell by 5.4% to 40% from a year ago. 

COGARD’s dollar bonds are currently trading at ~55-58 cents on the dollar.

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