NANJING, CHINA – AUGUST 18, 2023 – An aerial photo shows a residential district of Evergrande in Nanjing, east China’s Jiangsu Province, August 18, 2023. (Photo by Costfoto/NurPhoto via Getty Images)
Shares of the world’s most indebted real estate developer Evergrande Group China plunged as much as 87% when it opened on Monday, trading for the first time since March 21, 2022.
The shares fell to 22 Hong Kong cents on Monday, from their last close at 1.65 Hong Kong dollars per share on March 18, 2022.
The rebound in trade comes as the company posted a loss of 39.25 billion yuan ($5.38 billion) for the six months ended June, down from the 86.17 billion yuan loss for the same period last year.
Revenue was 128.81 billion yuan, up from 89.28 billion yuan in June 2022.
In July, the beleaguered company has filed for bankruptcy (chapter 15) protection in a US court, which shields its US assets from creditors while it works out a restructuring deal elsewhere.
On file with the Hong Kong Stock ExchangeEvergrande disclosed that its total liabilities stood at 2.39 trillion yuan in June this year, slightly lower than the 2.44 trillion yuan in the six months ended June 30, 2022.
As of June, Evergrande had total assets of 1.74 trillion yuan, including total cash, cash equivalents and restricted cash of 13.4 billion yuan.
Earlier this year, the company recorded a combined loss of $81 billion in its long-awaited results report.
Net losses for 2021 and 2022 were 476 billion yuan and 105.9 billion yuan, respectively, due to property write-downs, land restitution, losses on financial assets and financing costs, the company said. Company.
In 2020, before the company defaulted, Evergrande recorded a net profit of 8.1 billion yuan.
— CNBC’s Sumathi Bala and Elliot Smith contributed to this report.