The Strategist

Debt of China’s Evergrande falls to $339.9B

07/18/2023 - 10:32

The corporation has released reports for the years 2021 and 2022, which disclosure was long overdue.

Debt of China’s Evergrande falls to $339.9B
By the end of 2022, Evergrande, one of China's leading real estate developers, would have reduced its total debt holdings by 5.5% year over year to 2.437 trillion yuan (about $339.9 billion). This is in accordance with the real estate developer's financial report, which was posted on the Hong Kong Stock Exchange on Monday.

The developer released reports for the years 2021 and 2022 that had been long overdue. The paper states that at the end of the previous year, Evergrande possessed 210 million square meters of land and was engaged in 79 projects. By the end of 2022, the company's overall asset value—1.838 trillion yuan, or about $256.35 billion—had decreased by 12.7% year over year.

The company's net losses totaled 476 billion yuan (about $66.36 billion) by the end of 2021, and 105.9 billion yuan (roughly $14.77 billion) in 2022. Evergrande reported a profit of 8.1 billion yuan for 2020 before to the crisis.

After years of rapid expansion and active borrowing, the Chinese real estate developer Evergrande failed to make payments to creditors and subcontractors in 2021. Evergrande started liquidating assets in an effort to avoid bankruptcy.