Kaisa Group Holdings Ltd. is back on the bourse, more than two years from when the Hong Kong-listed developer's string of problems seemingly started with the resignation of its chairman, Kwok Ying-shing, who has since returned.
The trading halt on Kaisa shares lasted until March 27 at 9 a.m. Hong Kong time, from March 31, 2015. The resumption of trading was approved by The Stock Exchange of Hong Kong Ltd. after the company cleared five conditions, including the publication of its financial results for the years 2014, 2015 and 2016.
In separate filings, the company said that losses in the 2014, 2015 and 2016 financial years were at 1.30 billion Chinese yuan, 1.25 billion yuan and 347.5 million yuan, respectively. The company did not declare any dividends in the three reported years.
For the year ended Dec. 31, 2016, revenue was 17.77 billion yuan, gross profit was about 2.31 billion yuan at a 13.0% margin and contracted sales were 29.84 billion yuan. As at 2016-end, it carried about 16.57 billion yuan in cash and bank deposits, against debt of about 87.54 billion yuan.
The resumption also shows that Kaisa has sufficient working capital for its operations for at least 12 months. It said it completed the restructuring of its offshore and onshore debt in mid-2016. It also restored its public float in Hong Kong in February.
Bloomberg News reported March 27 that Kaisa's shares surged by a record 85% in Hong Kong to HK$2.92 apiece when it resumed trading.
Aside from being the first Chinese company to default on a loan in 2015, Kaisa in the past years saw failed and successful capital deals, project suspensions, auditor and other management changes and several negotiations with its debtors.
As of March 24, US$1 was equivalent to 6.89 Chinese yuan.