(Yicai Global) Aug. 18 -- Shares of Country Garden Holdings sank after China's largest property developer by sales warned core profit may have plunged more than 70 percent in the first half from a year ago and despite management assurances that the firm has ample cash to repay debt.

Country Garden [HKG: 2007] fell 5.2 percent to close at HKD2.39 (30 US cents) per share today. The stock has slumped more than 70 percent over the past 12 months amid a downturn in China’s property market.

Core net profit may come in at between CNY4.5 billion and CNY5 billion (USD663 million and USD736 million) in the six months ended June 30, down from CNY15.2 billion a year earlier, the Foshan-based builder said yesterday. Revenue likely fell 39 percent to CNY185.1 billion (USD27.3 billion).

The weaker performance resulted from factors such as slowing construction, lower sales income, and expected foreign exchange losses due to currency fluctuations. But Country Garden is operating well, with sufficient cash and stable liquidity, it added.

The developer has prepared funds to repay CNY4 billion (USD588.8 million) of domestic bonds next month and in November, senior executives said at a meeting with investors today. It has no US dollar-denominated bonds due this half, according to Executive Vice President Cheng Guangyu.

First-half sales by area likely fell 32 percent to 23.5 million square meters, Country Garden said. Last month, the builder had contracted sales of 3.4 million sqm worth CNY30.1 billion.

Editor: Emmi Laine, Xiao Yi