Chinese property developer Kaisa Group Holdings Ltd. said it expects a loss for 2014, a reversal from a net profit of 2.86 billion yuan (US$456 million) in the previous year.
Late Monday, the developer, which is listed in Hong Kong and based in Shenzhen, said its results for 2014 will be published by the end of March. It didn’t state the size of the projected loss, or elaborate on why it expects to be in the red.
Kaisa’s troubles started late last year, when authorities in Shenzhen blocked sales of properties in a number of its projects in the southern city, without providing a reason. Numerous senior people at the company later resigned, including Chairman Kwok Ying Shing.
Many creditors demanded early repayment of debt after his resignation. In response to litigation by the lenders, local courts in cities across China have blocked sales or frozen some of the firm’s projects and bank accounts.
Kaisa is in the midst of a rescue by Sunac China Holdings Ltd., another Chinese developer. It is seeking concessions from its creditors.