Centaline Property has stated that its subsidiary in mainland China has been deprived of substantial commissions, rendering it incapable of paying the related commissions and performance wages to its employees. This comes as a response to the company's reports on delayed payments from developers, including the troubled Evergrande, to this subsidiary.
In a statement, Centaline Property mentioned that its mainland subsidiary, Centaline (Shenzhen) Property Limited, has yet to receive some commissions due to real estate developers grappling with debt crises and liquidity crunches. The statement was made amidst a deepening real estate market crisis and escalating default risks, which have led to developers failing to pay commissions to real estate agencies.
Centaline Property noted that the amount of unpaid commissions by developers is enormous, preventing Centaline from prepaying these commissions to employees. Although the company did not disclose specific figures, the state-owned Securities Times previously reported that real estate developers owe the company's Shenzhen subsidiary more than 1 billion yuan ($137.19 million).
Centaline Property has established a team to handle overdue payments, promising that once funds are recovered, it will prioritize settling the corresponding commissions with employees. Currently, all subsidiaries are operating normally, and the company will not exit the mainland China market.
Liu Tianyang, the head of Centaline Property's overdue team, told the Securities Times earlier that some real estate developers offset commissions with housing, often resulting in revenue losses for real estate agencies in Shenzhen. The company is facing tremendous operational pressure, and paying commissions to employees will bring more difficulties to the company.
