China’s Evergrande has lost $81 billion over the past two years
The Shenzhen headquarters of Evergrande Group is pictured on January 11, 2022 in Shenzhen, Guangdong province of China.
Liang Xiashun | Visual China Group | Getty Images
China Evergrande Group posted a comprehensive loss of $81 billion in its extended earnings report late Monday.
The world’s most indebted property developer fell into default in 2021 and announced an offshore debt restructuring program in March, after struggling to complete projects and repay suppliers and lenders.
Evergrande’s net losses for 2021 and 2022 were 476 billion yuan ($66.36 billion) and 105.9 billion yuan ($14.76 billion), respectively, as a result of property write-downs, land returns, financial asset losses and financing costs , the company said.
In its last normal operating year, 2020, Evergrande had a net profit of 8.1 billion yuan.
Evergrande’s colossal debt pile in recent years has become the source of serious concern for China’s real estate sector, a bedrock of the Chinese economy, with defaults and abandoned property projects seen across the country.
