The debt crisis of Evergrande Group and other property developers in China has jeopardized their supply partners, as a growing number of Chinese construction and interior design companies write off assets or report profit warnings. Beijing Jiayu Door, Window, and Curtain Wall Co. projected a loss of as much as 1.4 billion yuan (about $220 million) in 2021, owing to 1.89 billion yuan (about $297 million) in unpaid receivables and commercial bills from Evergrande that are likely to go sour, in its annual earnings forecast last week. Shenzhen Wenke Landscape Co. also warned, in the latest exchange filing, of a net loss last year as a result of Evergrande’s 1.88 billion yuan (about $295.3 million) in defaults and receivables. As dozens of Chinese suppliers have revealed debts owed by developers like Evergrande, and most China-listed companies begin reporting their annual financial results this month, more such disclosures are expected. Some …
China Evergrande’s Debt Crisis Piles Pressure on Suppliers Who Issue Spate of Profit Warnings
February 8, 2022
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