The property crisis that has been going on in the world’s second-biggest economy for the past two years has hurt Evergrande.
China Evergrande Group lost $81 billion over two years, according to a long-delayed report of its results on Monday.
The property developer with the most debt in the world went bankrupt in late 2021 and has been fighting to finish projects and pay back suppliers and lenders. Evergrande announced one of the most significant debt restructuring plans in the country in March and is now getting help to finish the process.
The company said that Evergrande’s net losses for 2021 and 2022 were 476 billion yuan ($66.36 billion) and 105.9 billion yuan, respectively. Write-downs of properties caused these losses, the return of lands, losses on financial assets, and borrowing costs.
Experts in the market did not have high hopes for Evergrande.
A housing crisis has rocked the Chinese economy for the past two years. These results show how big the problems have been for the country’s largest property company. The debt crisis at Evergrande has sent shockwaves through China’s property market, causing a string of defaults and leaving property projects all over the country unfinished.
Since Evergrande went public in 2009, this was the company’s first two full-year losses. Since March, trading in the developer’s Hong Kong-listed shares has been stopped until the developer’s financial results for 2021 and 2022. Evergrande said on Monday that trading will stay stopped until those results are released. If the business’s shares are not reinstated within 18 months, there is a chance that the company will be delisted.
