2023-07-17 22:20:00
Chinese property developer China Evergrande has posted losses of more than $81 billion in 2021-22 combined. The company issued a long-delayed earnings report as it seeks to resume stock trading and complete the country’s largest debt restructuring.
A 105.9 billion yuan ($2.5 trillion) loss attributable to shareholders for the full year 2022 was in the red, according to a filing with the Hong Kong stock exchange on Thursday. 476 billion yuan deficit in 2021.
The numbers illustrate how Evergrande has suffered from the housing crisis over the past two years. This is the first time the company has posted losses for two consecutive years since its listing in 2009.
Evergrande’s sales halved to about 250 billion yuan in 2021, before dropping further to 230 billion yuan in 2022. Although the 2022 deficit has narrowed from 2021, it will sharply worsen from the 8 billion yuan surplus in 2020.
The company’s total debt soared to 2.58 trillion yuan at the end of 2021. By the end of 2022, it fell slightly to 2.44 trillion yuan.
The earnings release has given offshore bondholders more to consider when considering debt restructuring proposals. Evergrande said it aims to hold meetings with various classes of bondholders on the 24th and 25th of this month. The company said in April that more than 77% of its “class A” creditors supported the restructuring plan, but only 30% of its “class C” creditors. Each bond class would need to secure 75% consent for the debt restructuring to take place, he said.
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Analysts Daniel Huang and Adrian Shim of Bloomberg Intelligence said the earnings release could put Evergrande closer to resuming stock trading and could also get its debt restructuring plan approved.
news-rsf-original-reference paywall">Original title:China Evergrande Posts Losses of $81 Billion Over Two Years (2)(excerpt)
(Updates to add debt totals, analyst comments, etc.)
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