Pediafx.com – Tuesday 29 August 2023
Pediafx.com – Shares of Chinese property developer Evergrande plummeted by 87 percent at the opening of trading on Monday, August 28, 2023. Evergrande’s shares were traded for the first time since March 21, 2022.
Evergrande’s shares dropped to 22 Hong Kong cents on Monday, August 28, 2023, compared to the closing price on March 18, 2023. At the end of trading on Monday, August 28, 2023, Evergrande Group’s shares closed down by 78.79 percent.
Evergrande’s shares resumed trading as the company reported a loss of 39.25 billion yuan, equivalent to USD 5.38 billion, until June 2023. This loss was smaller compared to the same period last year, which amounted to 86.17 billion yuan. The company’s revenue reached 128.81 billion yuan, showing an increase from 89.28 billion yuan in June 2022.
In July 2023, Evergrande filed for Chapter 15 bankruptcy protection in a U.S. court, which would shield its assets in the U.S. from creditors while it worked on restructuring agreements elsewhere.
In its filing with the Hong Kong stock exchange, Evergrande disclosed that it had total liabilities of 2.39 trillion yuan as of June 2023. This amount was slightly lower compared to the same period last year, which stood at 2.44 trillion yuan.
As of June 2023, Evergrande had total assets of 1.74 trillion yuan, including cash, cash equivalents, and restricted cash of 13.4 billion yuan.
Evergrande experienced a default in 2021 and announced a foreign debt restructuring program in March after facing difficulties in completing projects and repaying suppliers and lenders.
Earlier this year, the company reported a combined loss of USD 81 billion in its long-delayed financial statements.
The net losses for 2021 and 2022 amounted to 476 billion yuan and 105.9 billion yuan, respectively. This was due to property devaluation, land returns, losses on financial assets, and financing costs. In 2020, before the company faced default, Evergrande recorded a net profit of 8.1 billion yuan.
