08/27/2023 – 21:36
The Chinese Evergrande, considered the most indebted real estate developer in the world, significantly reduced its losses in the first half of 2023, mainly due to the absence of losses due to the deterioration of investments.
Net loss for the six months ending in June was 33.01 billion yuan (4.53 billion US dollars), compared with 66.35 billion yuan (9.1 billion US dollars) in the same period last year. , informed the company on the night of this Sunday, 27.
Revenue increased to CNY 128.18 billion (US$17.6 billion), compared to CNY 89.28 billion (US$12.2 billion) in the same period last year, mainly due to higher contribution from development business real estate.
Losses from impairment of financial assets amounted to just CNY 643 million (US$88.2 million), compared to the loss of CNY 8.19 billion (US$1.1 billion) in the first half of 2022. depreciation of investments accounted for in the first half of 2023 were nil compared to CNY 18.03 billion (US$2.5 billion) a year earlier using the equity method.
China’s crackdown on leverage in the real estate sector in 2021 hurt many developers, who suffered severe declines in home sales and reduced access to the debt market. Evergrande defaulted as its cash flow problems increased, leaving it unable to pay builders and suppliers.
The company’s total liabilities at the end of June amounted to 2.39 trillion yuan (328 billion US dollars), the company announced, adding that it will accelerate the restructuring of offshore debts and work to protect the long-term interests of various creditors.
Earlier this month, the company applied for US court approval to restructure more than $19 billion of its offshore debt as part of a bid to advance plans to complete one of the world’s largest and most complex debt restructurings. .
The company said that its shares, with trading suspended since March 21 of last year, will resume trading on the Hong Kong Stock Exchange from August 28. Source: Dow Jones Newswires.
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