China Evergrande Group posted a combined loss of $81 billion in its long overdue earnings report on Monday July 17.
The world’s most indebted property developer fell into default in 2021 and announced an offshore debt restructuring program in March, having struggled to finish projects and repay suppliers and lenders.
Evergrande’s overall deficits for 2021 and 2022 were 476 billion yuan ($66.36 billion) and 105.9 billion yuan ($14.76 billion), respectively, because of writedowns of properties, return of grounds, losses on monetary assets and financing cost, the organization said.
In its last year of operation, in 2020, Evergrande posted a net profit of 8.1 billion yuan.
In recent years, Evergrande’s enormous debt pile has become a serious concern for China’s property sector, which is the foundation of the Chinese economy. Throughout the country, there have been defaults and abandoned property projects. The organization’s proposed rebuilding is expected to be heard at the High Court on July 24.
JPMorgan gauges that around 50 property engineers have defaulted on $100 billion of seaward bonds throughout recent years, while handfuls have been suspended from trading on the Hong Kong stock exchange.
Over 30 developers’ monthly contracted sales are tracked by CreditSights, but only eight, according to experts, had reported increases.
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