China Evergrande Group, the world’s most indebted developer, narrowed its losses significantly in 2022 as it clawed its way back to the business of selling properties and reined in costs.
The Guangzhou-based conglomerate’s net loss was 105.91 billion yuan ($14.51 billion) compared with a loss of CNY476.04 billion in 2021, according to its annual 2022 report published late Wednesday.
Revenue fell to CNY230.07 billion from CNY250.01 billion over the period.
Evergrande had defaulted on debt payments as its cash-flow problems mounted, which also caused it to fail to pay its contractors and suppliers. China’s crackdown on leverage in the property sector in 2021 hurt many real-estate developers, which suffered severe drops in home sales and reduced access to the debt market.
The developer’s total liabilities at the end of 2022 amounted to CNY2.44 trillion. The company said it will expedite the restructuring of offshore debt and other works to protect the long-term interests of various creditors.
As part of its debt restructuring, Evergrande entered into a deal covering $19 billion in bonds following lengthy negotiations with international creditors.
Holders of the developer’s foreign debt could choose to swap their holdings into new long-term debt or take some principal losses and get a mix of shorter-term bonds and equity-linked notes backed by shares of Evergrande or two of its listed subsidiaries, including Evergrande Auto.
On its business outlook, the company said it will endeavor to ensure steady and orderly advancement of key tasks such as “ensuring the delivery of properties,” the continuous operation of new-energy vehicles and property services.
It is also looking at either selling or effectively using some of its core assets, to keep addressing the risks it faces.