Hong Kong CNN —Evergrande Group, the world’s most indebted real state developer, has reported a significant narrowing in its net losses for the first half of the year, thanks to a rise in revenue because of “the short boom of the property market” earlier this year.
Its shares plummeted 87% at Monday’s open, after they resumed trading following a 17-month suspension.
Evergrande said its loss attributable to shareholders amounted to 33 billion yuan ($4.5 billion) for the January to June period, a 50% drop from the 66.4 billion yuan loss ($9.1 billion) recorded in the same period a year ago, it said in a Sunday filing to the Hong Kong stock exchange.
Revenue surged 44% from a year ago, reaching 128.2 billion yuan ($17.6 billion).
But it had borrowed heavily to fund its expansion and defaulted on its debt in 2021, sparking a crisis in China’s real state sector, which accounts for as much as 30% of the country’s economy.
Persons:
Evergrande, “, ”
Organizations:
Hong Kong CNN — Evergrande, Revenue
Locations:
Hong Kong, Shenzhen, United States