China Evergrande Group, the world’s most indebted developer, narrowed its first-half loss significantly mainly due to an absence of impairment loss on investments.
Net loss during the period ended-June was 33.01 billion yuan ($4.53 billion) compared with CNY66.35 billion loss a year earlier, the company said late Sunday.
Revenue rose to CNY128.18 billion compared with CNY89.28 billion in the same period last year mainly due to higher contributions from its property development business.
Evergrande shares, suspended from trading since March 21, 2022, resumed trading on the Hong Kong stock exchange Monday and sank as much as 87%.
Impairment losses on financial assets were only CNY643.0 million compared with CNY8.19 billion loss in the first half of 2022. Impairment losses on investments accounted for using the equity method in the first half of 2023 was nil as against CNY18.03 billion a year earlier.
China’s crackdown on leverage in the property sector in 2021 hurt many real-estate developers, who suffered severe drops in home sales and reduced access to the debt market.
Evergrande defaulted on debt payments as its cash-flow problems mounted, leaving it unable to pay its contractors and suppliers.
The company’s total liabilities as at end-June amounted to CNY2.39 trillion, Evergrande said, adding that it will expedite the restructuring of offshore debts and work toward protecting the long-term interests of various creditors.
Earlier this month, the company sought a U.S. court’s approval to restructure more than $19 billion in its offshore debts as part of its attempt to move ahead on plans to complete one of the world’s largest and most complex debt restructurings.