BUZZ-Country Garden Services plunges to record low after impairments forecast

Reuters2023-12-19

** Shares in Country Garden Services tumble as much as 12.1% to HK$6.08, an all-time low

** Stock among top 10 biggest losers and the seventh most traded stock by value in the bourse

** Country Garden Services, the property management unit of embattled developer Country Garden , says it expects its 2023 net profit will decrease by 3.2 billion yuan ($448.17 million) to 4.1 bln yuan due to impairments

** It says it has made an impairment provision of 1.8 bln yuan to 2.3 bln yuan for trade receivables due from related parties of the group

** Reason is because the related party customers are engaged in real estate development and their businesses are under periodical liquidity pressures due to significant changes in the real estate market, it says

** It also made an impairment charge of 1.4 bln yuan to 1.8 bln yuan for goodwill and other intangible assets

** Country Garden Services adds the impairments will not have any impact on the cash flow for its operation

** The Hang Seng Mainland Properties Index falls 3.1%

($1 = 7.1401 Chinese yuan renminbi)

(Reporting by Clare Jim)

((clare.jim@tr.com))

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