HONG KONG (Reuters) -China's top property developer Country Garden Holdings said on Thursday its core profit plunged 90% in 2022 and it posted a record net loss, hurt by a sluggish property market and a debt crisis in the sector.

Country Garden said core profit, which excludes changes in the value of assets and financial instruments and foreign exchange, was 2.6 billion yuan ($377.36 million), down from 26.9 billion yuan the previous year.

It however posted a net loss of 6.1 billion yuan, a reversal from 26.8 billion yuan net profit in 2021.

Country Garden had flagged the disappointing results earlier this month, citing a drop in gross profit margin, a rise in provisions for impairments on property projects and net foreign exchange losses.

Property firms in China have struggled to complete projects and sell new houses in a sector hit by a debt crisis since mid-2021.

Many Chinese developers have so far posted a drop in core profit or a loss for their 2022 results, while a few state-backed peers fared better and recorded a rise.

Shares of Country Garden reversed losses after the earnings results, gaining 0.5% as of 0555 GMT. The Hang Seng Mainland Properties Index rose 0.7%.

In Thursday filing, the developer described 2022 as "a harsh winter" for the sector but said the market had bottomed out and was poised for a recovery as favourable economic policies restored industry confidence.

"However, Country Garden has to keep clear-headed because the market will not recover overnight," it said. "The property sector is still under great strain."

Its total interest-bearing debts fell 15% to 271.3 billion yuan and its net gearing ratio was 40%, down 5.4 percentage points from end-2021.

The developer said it was determined to transform itself into a high-tech enterprise in the future by developing construction robots and a tech-enabled construction business.

($1 = 6.8900 Chinese yuan renminbi)

(Reporting by Clare Jim; Editing by Jamie Freed)