(Reuters) - The property services arm of Chinese builder Country Garden ( CTRYF ) is expecting a drop of up to 1.10 billion yuan ($150.03 million) in annual earnings as its sanitation business plans to record an impairment charge for goodwill and tangible assets.

The unit, Country Garden Services ( CTRGF ) , said the impairment was primarily because the expansion of its sanitation business had not been carried out as was scheduled and expected in the past years, leading to a drop in both sales and profit.

The long payment period of some customers of the sanitation business had also resulted in some "unsatisfactory" cash flows, Country Garden Services ( CTRGF ) said in an exchange filing.

It does not expect the charges to affect the normal operations of the firm, the company said, adding it had enough working capital and a stable business operation.

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

Property developer Country Garden ( CTRYF ), which has been in the middle of a prolonged local debt crisis, said last week it had proposed a deal to its offshore creditors to cut its debt by $11.6 billion.

($1 = 7.3319 Chinese yuan renminbi)

(Reporting by Aaditya Govind Rao & Sherin Sunny in Bengaluru; Editing by Anil D'Silva)