The shares of the Chinese developer Evergrande have returned to the Hong Kong Stock Exchange after almost a year and a half suspended from trading with a fall of 86.6%, to stand at 0.22 Hong Kong dollars (0.025 euros). At 7:27 Spanish time, Evergrande moderated the decline in its shares to 79.4%, placing the value of the share at 0.34 Hong Kong dollars (0.040 euros).
The Chinese promoter informed the market this Sunday of its results for the first half of the year, in which it registered a net attributable loss of 33,012 million yuan (4,191 million euros), half of what it lost in the first half of 2022.
The invoicing of the Asian company amounted to 128,067 million yuan (16,256 million euros) until June, a figure 43% higher than that of the first half of last year. At the end of the first half of 2023, Evergrande’s liabilities exceeded 2.38 trillion yuan (302,183 million euros), 2% less than at the end of 2022.
Evergrande published its overdue accounts for the years 2021 and 2022 last July, in which the company recorded losses for an aggregate amount of 581,211 million yuan (73,769 million euros at current exchange rates).
Specifically, the Chinese real estate giant suffered losses of 476,095 million yuan (60,431 million euros) in the 2021 financial year, red numbers that it managed to reduce in 2022 to 105,116 million yuan (13,372 million euros). In the 2020 financial year, the Chinese developer had posted an attributable net profit of 8,076 million yuan (1,027 million euros).
The release of the company’s accounts for the back years of 2021 and 2022 was part of Evergrande’s efforts to go public again after trading in its shares was suspended in March 2022.
The problems for Evergrande began two years ago, when the Chinese group recognized liquidity difficulties and risks of default. The promoter recently filed for bankruptcy protection under Chapter 15 of the United States Bankruptcy Law in a New York court. Precisely, this Chapter 15 protects the assets of the company in the United States, while restructuring agreements are managed in other jurisdictions.
International debt restructuring agreements sometimes require a filing of a Chapter 15 case in the course of completing a transaction. Thus, Evergrande’s petition referred to the restructuring procedures that are being carried out in Hong Kong and the Cayman Islands.
The Chinese construction company has been working for some time to finalize a debt restructuring plan outside its country. In July it received court approval to vote on the deal and meetings are scheduled to take place later this month.
Evergrande announced last March a plan to carry out the restructuring of part of its offshore debt, which then amounted to approximately 140,284 million yuan (17,702 million euros).
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