Clock Is Ticking for Hong Kong Firms as Earnings Deadline Looms

  • Firms that submitted unaudited earnings must comply by May 15
  • Trading in 32 stocks was halted earlier due to results delay

Hong Kong-listed firms that have not submitted audited annual results have until mid-May before they risk a trading suspension, with the deadline likely to put pressure on real estate developers.

Some 192 firms had filed unaudited earnings by end-March to avoid having their shares suspended. With companies citing issues caused by Covid-19 outbreaks for the delays, firms were given until May 15 to file their annual reports, which would include audited earnings, according to the stock exchange. The exchange would consider applications from companies needing additional time beyond the deadline on a case-by-case basis.

A fresh round of suspensions may trigger further volatility in the Hang Seng Index, which is on track to post its biggest monthly loss since July. Fears about the fallout from China’s Covid curbs have hurt sentiment, and policy stimulus so far has fallen short of investors’ expectations.

Among major Chinese developers that had published unaudited annual results, only KWG Group Holdings Ltd. has filed an audited version so far, according to data compiled by Bloomberg. Guangzhou R&F Properties Co. and Logan Group Co. said they will publish audited statements by April 30, while Agile Group Holdings Ltd. said it will do so no later than May 15.

COMPANY UNAUDITED RESULTS EXPECTED DATE OF AUDITED RESULTS TRADING STATUS
KWG Published on Mar. 31 Published on Apr. 18 Trading
Powerlong Published on Mar. 29 Published on April 29 Trading
Logan Published on Mar. 31 On or before Apr. 30 Trading
Shimao Not able to publish Will make further announcements Suspended since Apr. 1
Kaisa No No Suspended since Apr. 1
Guangzhou R&F Published on Mar. 31 On or before Apr. 30 Trading
Agile Published on Mar. 31 On or before May 15 Trading
Ronshine Published on Mar. 31 As soon as practicable Trading
Evergrande No As soon as practicable Suspended since Mar. 21
Sunac Not able to publish As soon as practicable Suspended since Apr. 1
Aoyuan No No Suspended since Apr. 1
Source: Bloomberg Intelligence

Earlier this month, the exchange said that firms are given an extension to May 15 from the previous deadline of end-April to file their annual reports.

On April 1, trading in 32 stocks was halted after the companies failed to meet a deadline to file their unaudited results, according to the exchange. They included Sunac China Holdings Ltd. and Shimao Group Holdings Ltd.

Author: John Cheng, Bloomberg

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