Kardan N.V.•H12020:
€31.2million net loss to equity holders (H12019: net loss of €46.6million), is due to high interest expenseson the debentures,which were partially offset by positive impact of FXandIsraeli CPIon the Company’s debentures, an impairment lossin the Real Estate activities and a net loss of the Water Infrastructure activitiesas a result of provisions for losses on projects and doubtful debts.
•Q2 2020: € 27.5million net loss to equity holders (Q2 2019: net loss of € 23.1 million).
Real Estate•H1 2020:the net loss to equity holders amounted to €4million (H12019: net profitof €1.5million), as a result of a decreaseof€7.7millioninthe value of the Galleria Dalian shopping mall.The loss was mitigated by the profit from deliveries of apartments in the Dalian project and the joint venture projects.
•The COVID-19 pandemic had someimpact on the development activities and a more significantimpact on the investment property activities. As shops in the Galleria Dalian shopping mall had to be temporarily closedin the first halfof 2020, a rental discount of €0.7million in total was granted to tenantsand the valuation of the mall further decreased.Water infrastructure (discontinued operation)•H12020: the net lossattributable to equity holdersamounted to €12.8million impacted by provisionsfor doubtful debtsandimpairments and losses mainly on terminated projects(H12019: net lossof €11.9million).
•Kardan’swater infrastructure company -TGI,is currently in the midst of ongoingnegotiations with the financing banks regardingthe restructuring of its debts. •The outbreak of the COVID-19virus has impactedthe water infrastructure activities. Whilst in a significant number ofcountriesin which it operates,the projects in which TGIis involvedcontinued in full or in part; insomecountries the projects have stopped completelyfor a limited period. In addition, the economic crisis following the COVID-19 outbreak impacts the economic activity in some of the countries where TGI is operating. However, TGI’s assessment is that its projects in these affected countries will continuealbeitat a slower pace than previously estimated.
Other•The Company did not repay the February 2018,2019and 2020scheduled paymentsof principal and interest to the Company’s Debenture Holders (series A and B). As a result, since February 2018 the Company is in default. •The ordinary shares of Kardan delist from the stock exchange of Euronext Amsterdameffective as oftoday,31 August2020.The shares and debentures of Kardan will remain listed on the Israeli Stock Exchange.