27-8-2023 (BEIJING) China Evergrande Group, a prominent property developer, disclosed a net loss of 33 billion yuan (US$4.53 billion) for the period from January to June this year. This figure marks a significant decline from the previous year when the company reported a loss of 66.4 billion yuan during the same period.
The ongoing financial challenges of Evergrande have placed it squarely in the epicenter of a crisis within China’s property sector, a crisis that has been unfolding since late 2021 and has witnessed a series of debt defaults.
In a long-anticipated earnings report released last month, the world’s most indebted property developer revealed a staggering combined net loss of 582 billion yuan for the years 2021 and 2022. This stark contrast follows a year of profitability in 2020, when Evergrande posted a profit of 8.1 billion yuan.
Over the two-year period of 2021 and 2022, the company’s revenue plummeted by 55 percent, reaching 230.1 billion yuan. Simultaneously, liabilities surged by 23 percent, climbing to 2.4 trillion yuan, while assets dwindled by 20 percent to 1.8 trillion yuan.
In a recent announcement made on Friday, Evergrande stated that it had satisfactorily complied with exchange guidance required for the resumption of trading of its Hong Kong-listed stock. The company has submitted an application for trading to recommence on August 28th.
Trading of Evergrande’s stock has remained suspended since March of the previous year. This suspension was pending the release of the company’s 2021 and 2022 financial results and the resolution of various issues, including an investigation into the seizure of 13.4 billion yuan in deposits from a subsidiary.
