Evergrande posts losses of $81 billion over two years

Hong Kong, July 18 (SocialNews.XYZ) Evergrande Group, the world’s most indebted property developer, has posted long-delayed financial results as a key part of its debt restructuring, which is shaping up to be one of the largest in Chinese corporate history, a media report said.

The company reported losses attributable to shareholders of 476 billion yuan ($66 billion) and 106 billion yuan ($15 billion) for 2021 and 2022, respectively, according to a Monday stock exchange filing, CNN reported.

Its combined net losses for the two years amounted to 582 billion yuan ($81 billion).

This is the first time the group has released results since 2021, when its collapse sparked China’s worst-ever property crisis, which continues to weigh on the economy, CNN reported.

Shares in Evergrande have been suspended from trading since March 2022 because of its delay in releasing 2021 results.

To avoid being delisted, Evergrande had to report the results no later than September 20, in addition to meeting other requirements specified by the stock exchange.

The filing also revealed that Evergrande’s total debts had reached 2.437 trillion yuan ($340 billion) by the end of last year.

Evergrande’s total assets, meanwhile, were valued at only 1.838 trillion yuan ($256 billion), which means it could be insolvent, CNN reported.

The company’s employee headcount fell by 17% to 102,910 by the end of last year from two years ago.

The conditions indicate “the existence of material uncertainties” that may cast significant doubt about the company’s ability to continue as a going concern, it said.

Evergrande has been undergoing a major debt restructuring since late 2021, which was ordered by the government. CNN reported.

Source: IANS