Jakarta – Trading in stocks of China’s most indebted property giant, Evergrande restarted. The property company’s shares, which owe almost Rp. 5,000 trillion, immediately fell 87%.
Trading of Evergrande’s shares was previously locked on the Hong Kong stock exchange since March 21, 2022 or about 17 months ago. As soon as it opened on Monday local time, Evergrande’s shares plummeted immediately.
Quoted from CNBC, Monday (28/8/2023), shares Evergrande is now worth 22 Hong Kong cents. Far when compared to the price on March 18 2022 before it was discontinued, namely at 1.65 Hong Kong dollars.
The resumption of trading came as the company posted a loss of 39.25 billion yuan ($5.38 billion) for the six months ended June, a smaller loss compared to a loss of 86.17 billion yuan in the same period last year.
Revenue reached 128.81 billion yuan, up from 89.28 billion yuan in June 2022.
Last July, Evergrande filed for chapter 15 bankruptcy protection in a New York United States court which protects assets from creditors to non-US debtors.
In its submission to the Hong Kong exchange, Evergrande disclosed that it had a total debt obligation of 2.39 trillion yuan as of June this year, slightly lower than the 2.44 trillion yuan in the six months ended June 30, 2022.
In the month of June, Evergrande has total assets of 1.74 trillion yuan, including total cash, cash equivalents and restricted cash of 13.4 billion yuan.
Evergrande defaulted in 2021 and announced an external debt restructuring program in March, after having struggled to complete projects and repay suppliers and lenders.
Earlier this year, the company posted a combined loss of $81 billion in its long overdue earnings report.
Net losses in 2021 and 2022 amounted to 476 billion yuan and 105.9 billion yuan, respectively, due to property declines, land returns, loss of financial assets and financing costs, the company said.
In 2020, before the company went into default, Evergrande posted a net profit of 8.1 billion yuan.
Watch Video “Allure Mansion, Strategic Residential on the Edge of the City”
(zlf/zlf)
2023-08-28 02:36:44
#Reopened #Evergrande #Shares #owe #IDR #immediately #dropped
