Hong Kong
CNN
—
Evergrande Group, the world’s most indebted property developer, said its net loss narrowed significantly in the first half of the year, thanks to higher earnings from a “short-term boom in the property market” earlier this year.
The company’s shares plunged 87% at the start of trading on Monday after resuming trading after a 17-month hiatus.
Evergrande said its loss attributable to shareholders for the January-June period reached 33 billion yuan ($4.5 billion), down 50% from a loss of 66.4 billion yuan ($9.1 billion) in the same period last year. declaration on sunday to the Hong Kong Stock Exchange. Sales reached 128.2 billion yuan ($17.6 billion), up 44 percent year-on-year.
The company said it “has successfully capitalized on the short-term property market boom that appeared at the beginning of the year by planning aggressively for the resumption of sales.”
The Shenzhen-based company has long been one of China’s largest property developers by turnover. But it has borrowed heavily to fund its expansion and defaulted in 2021, sparking a crisis in China’s property sector, which accounts for 30% of the country’s economy. Earlier this month, the company filed for bankruptcy in the United States.