Evergrande: Chinese real estate industry titan admits to $81 billion loss

Crisis-hit Chinese real estate company Evergrande has disclosed that it lost a total OF 581.9 billion yuan ($81.1 billion; £62 billion) between 2021 and 2022.

The company, which went into debt default in late 2021, informed Hong Kong investors of its missed results.

Evergrande has struggled with debts worth an estimated $300 billion (£229 billion).

The significant losses show how severely the developer was impacted by the current real estate market crisis in the second-largest economy in the world.

The company said late on Monday that it lost 105.9 billion yuan in 2017 and 476 billion yuan in 2021 in filings to the Hong Kong Stock Exchange.

This happened as revenue more than halved over the course of two years.

Evergrande claimed that a number of factors, such as the depreciating value of real estate and other assets as well as increasing borrowing costs, were to blame for the losses.

Trading in the company’s shares, which were once the most popular in China, has been halted since March of last year.

In 2020, new regulations limiting the amount large real estate corporations might borrow were adopted, upending China’s real estate market.

The next year, Evergrande failed to meet a significant deadline and pay the interest on about $1.2 billion in foreign loans.

Due to its financial difficulties, a number of other developers have stopped making payments on their loans, abandoning incomplete construction projects all around the nation.

Evergrande announced ITS intentions earlier this year to restructure over $20 billion in foreign debt.

As it aggressively developed to become one of China’s largest enterprises, the firm piled up debts totaling more than $300 billion.

The company’s growth during the past 15 years has spanned a variety of sectors, including sports, entertainment, and the production of electric vehicles.

Guangzhou FC became under the administration of Evergrande in 2010, and the team’s name was changed to Guangzhou Evergrande Taobao FC.

The squad was reinforced thanks to a fresh infusion of cash, and it swiftly earned promotion to the top division of Chinese football. Since 2011, it has won the Chinese Super League championship eight times, including seven consecutive seasons.

The club was kicked out of the Super League last season, and Evergrande’s $1.8 billion building plans were scrapped. In addition, Guangzhou FC has been reinstated as the club’s new name.

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