(Yicai) Aug. 11 -- Shares in Fantasia Holdings Group plummeted today as investors took fright after the heavily indebted Chinese developer released its 2021 and 2022 financial results, ending a 16-month trading suspension on the Hong Kong stock exchange and also revealing the scale of its liquidity crisis.

Fantasia’s share price [HKG:1777] plunged 55 percent to finish the day at HKD0.09 (USD0.01).

The developer logged losses of CNY10.8 billion (USD1.5 billion) in 2021 and CNY6 billion in 2022, according to the earnings results released by the Shenzhen-based firm yesterday. This was on a sales turnover of CNY45.7 billion (USD6.3 billion) for 2021 and CNY2.9 billion (USD401 million) for 2022.

Its cash reserves had shrivelled 88 percent by the end of 2022 from the year before to CNY2.7 billion (USD373.4 million). Meanwhile, it had racked up CNY59 billion (USD8.1 billion) in debt, with a debt-to-assets ratio of 1,228.9.

Fantasia, which was the first Chinese developer to default in this round of real estate defaults in October 2021, had been unable to repay CNY43.5 billion (USD6 billion) of liabilities as of the end of last year.

This casts great doubt on its ability to continue as a going concern, according to the independent auditor’s report.

The firm had racked up USD4.2 billion in offshore debt as of Nov. 20, 2022. It published an offshore debt restructuring plan on Jan. 13, proposing to change USD1.3 billion of debt to equity, to convert other debt into new US dollar-denominated notes and to extend the maturity dates of some bonds by between two and six-and-a-half years. If the proposal is approved, Fantasia will cut its offshore liabilities in half.

The developer’s debt restructuring plan had gained support from 76 percent of creditors as of May, more than the required minimum of 75 percent, but it has not yet implemented the plan.

Editor: Kim Taylor