Evergrande's overdue results show steep losses, liabilities
By Clare Jim
HONG KONG (Reuters) -China Evergrande Group, the world's most indebted property developer, posted a steep net loss of $14.8 billion in 2022 and a rise in total liabilities in its long overdue results on Monday.
The developer defaulted in late 2021 and has been struggling to complete projects and repay its many suppliers and creditors. After announcing an offshore debt restructuring plan in March, it is now garnering support to complete the process.
With one of the largest debt piles in the country, Evergrande's debt problem has rippled through China's property sector, a pillar of the world's second-largest economy, leading to a string of defaults and uncompleted homes across the nation.
Shares of Evergrande listed in Hong Kong have been halted from trading since March 21 last year, pending the 2021 and 2022 financial results and an investigation into 13.4 billion yuan of seized deposits of a unit, among others.
The shares will remain suspended, Evergrande said in the filing on Monday. The company risks being delisted if its shares remain suspended for 18 months.
Evergrande reported a net loss of 476 billion yuan ($66.36 billion) and 105.9 billion yuan ($14.76 billion) for 2021 and 2022, respectively, versus a net profit of 8.1 billion yuan in 2020 when its operation was normal.
The huge losses were caused by return of lands, write-down of properties, losses on financial assets and finance costs, it said.
Its total liabilities amounted to 2.4 trillion yuan last year, an increase of 23% from 2020, while total assets were worth 1.8 trillion yuan, down 20%.
Revenue dropped 55% to 230.1 billion yuan in 2022 from 2020.
Its auditor, Prism Hong Kong and Shanghai Limited, however said in the report it does not
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