Evergrande loses 4.198 billion euros with liabilities of 303.752 million euros
Indebted Chinese real estate giant Evergrande announced a loss of 33.012 billion yuan ($4.528 billion or €4.198 billion) in the first half of the year, down 50.4 per cent from the same period in 2022, when it lost 66.4 billion yuan ($9.136 billion or €8.46 billion).
The company, which in 2020 had earned 8.076 billion yuan ($1.126 billion or 1.001 billion euros), also said that at the end of June 2023 its total liabilities reached about 2.38 trillion yuan ($327.598 billion or 303.752 billion euros), 2.02% lower than the previous year, but about 25% higher than at the end of 2020.
Of this amount, 624.765 billion yuan ($85.701 billion or €79.463 billion) relates to loans, an increase from the end of 2022 of 2.02%.
The figures also reflect a 5.13% decline in the value of the company’s total equity from year-end 2022 to 1.74 trillion yuan ($239.231 billion or €221.817 billion).
In the first half of 2023, Evergrande, mired in a Chinese property sector crisis that has seen a series of debt defaults since the end of 2021, turned over 128.067bn yuan ($32.084bn or €28.529bn), up 43% compared to the same time period in 2022.
Apart from operating losses, Evergrande attributed much of its negative results to factors such as the return of land and impairment losses on financial assets.
EVERGRANDE’S LISTING RESTARTS
Chinese property developer Evergrande, the world’s most indebted property developer, applied on Monday for its shares to be re-listed on the Hong Kong stock exchange.
In a statement sent to the bourse on Friday night, Evergrande said it had met all the requirements to lift the suspension of its share listing, which had been in place since 21 March 2022.
Evergrande claimed in the document that it has “sufficient business operations”.
The company said it is “prioritising the stabilisation of operations and the resolution of risks”, and that it is “working with maximum effort to ensure the delivery of properties”.
The real estate company reported that, with the support of local governments, upstream and downstream companies and landowners, the group resumed construction on 732 projects to ensure property delivery. By 2022, Evergrande delivered a total of 301,000 units.
