Real Estate

The Evergrande Group headquarters building in Shenzhen is pictured on January 11, 2022 in Shenzhen, Guangdong Province of China.
Liang Xiashun | Visual China Group | Getty Images

China Evergrande Group posted a combined loss of $81 billion in its long overdue earnings report late on Monday.

The world’s most indebted property developer fell into default in 2021 and announced an offshore debt restructuring program in March, having struggled to finish projects and repay suppliers and lenders.

Evergrande’s net losses for 2021 and 2022 were 476 billion yuan ($66.36 billion) and 105.9 billion yuan ($14.76 billion), respectively, as a result of writedowns of properties, return of lands, losses on financial assets and financing costs, the company said.

In its last normal year of operation, 2020, Evergrande posted a net profit of 8.1 billion yuan.

Evergrande’s colossal debt pile in recent years has become the source of serious concern about China’s property sector, a bedrock of the Chinese economy, with defaults and abandoned property projects seen across the country.

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