(Yicai Global) Nov. 30 -- Property developer Sunac China Holdings has cut its profit forecast for last year, citing the impact of Covid-19, sluggish sales, and major changes in the firm’s operating environment.

Net profit likely fell about 207 percent in 2021 from the previous year, the Tianjin-based company said in a statement yesterday. Core net profit is expected to have plunged around 184 percent. Sunac earlier predicted that net profit and core net profit had probably dropped 85 percent and 50 percent, respectively.

The company said it lowered the forecast after making further provisions for property impairment, an expected credit loss on receivables and external guarantees, and goodwill and related long-term assets in its cultural tourism city business because of recurrent Covid outbreaks, the rapid downturn in China’s real estate market, and significant changes in the operating environment since this March.

Sunac is gripped by a cash crunch and is preparing to restructure its domestic debt. The company’s stock was suspended from trading on the Hong Kong stock exchange on April 1 after the developer failed to submit its 2021 annual results on time. It has also not filed an interim report for 2022 yet.

Sunac said it would release unaudited results for 2021 by Dec. 31.

The company had contracted sales of about CNY153.1 billion (USD21.4 billion) for about 11.6 million square meters of properties as of October, with prices averaging about CNY13,220 (USD1,852) per sqm.

Editor: Futura Costaglione