Country Garden’s property services arm expects annual revenue to decline.

(Reuters) – The property services arm of Chinese developer Country Garden expects a decline in annual revenue of up to 1.10 billion yuan ($150.03 million), as its sanitation business plans to record impairment charges on goodwill and tangible assets.

He said that the disability of the country’s garden service was mainly due to the fact that the expansion of the sanitary protection business did not work as planned and expected in the past years, resulting in a decrease in sales and profits.

Long payment periods for some sanitation business customers have resulted in some “unsatisfactory” cash flows, the Inland Garden Service said in an exchange filing.

He said he did not expect the lawsuit to affect the company’s normal operations, saying the company had sufficient working capital and a stable business.

The company said it expects to report its fiscal 2024 results between mid-March and late 2025.

Property developer Country Garden, which has been embroiled in a long-running domestic debt crisis, said last week it had reached an agreement with offshore lenders to reduce its debt by $11.6 billion.

($1 = 7.3319 Chinese Yuan Renminbi)

(Reporting by Aditya Govind Rao and Sherin Sunny in Bengaluru; Editing by Anil D’Silva)