Updates of Evergrande Real Estate Group Ltd
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Evergrande has warned that it can repay debt if it does not get the money it needs, while China’s heavily indebted builders are battling to cope with the financial crisis.
The shocking news from the company came in a timely report on Tuesday that confirmed the profit alert issued last week and outlined a number of ways to earn its revenue including real estate sales.
“The group is at risk of repayment by borrowing and litigation outside its business,” Evergrande said, adding that it would continue to sell goods, raise money and try to attract new businesses.
The warning comes at a time when Evergrande is facing unprecedented challenges in its history, a number of recent problems raising questions about income, forcing them to sell goods and I find it strange public criticism from the government because of his debts.
Evergrande said “negative reports” on his business had “negative” implications for his involvement, which led to delays in construction costs and payments to suppliers, which led to some jobs being suspended. It also said it was in agreement with the government on the matter.
“If the merged operations do not resume operations, there could be a risk of damage to the project and the potential for disruption to the organization,” the company said in its earnings report, which showed that overall profits fell 29% a year to Rmb10. 5bn ($ 1.6bn). It has 778 jobs in 223 cities in China.
Evergrande, which has been growing for decades after China’s urban development and its chairman Hui Ka Yan was the richest man in the country, is now rushing to reduce its debt. It said its total lease was Rmb572bn by the end of June, down from Rmb717bn at the end of 2020.
His misfortune contributed to the push borrow money in China’s most dangerous repatriation in recent months.
Manufacturers in China have all been pressured by Beijing’s proposal launched last year, but Evergrande endured the turmoil 12 months after plans to name his company in Shenzhen were foiled, which threatened financial losses.
Market tensions were exacerbated by a number of recent issues, including a court ruling that suspended one of its own bank deposits, and suspend government services. Evergrande, which relies heavily on paying off debts from clients and providing sales revenue to builders, wants to meet case numbers in Chinese courts this year.
In an effort to raise funds, Evergrande intends to roll out its products in the electric car business, which has not yet sold a car and its shares have fallen 80% this year, as well as a supply chain. Evergrande shares have dropped by about 70% a year to date.
Nigel Stevenson, a researcher at GMT Research in Hong Kong, said that “Evergrande’s choices have slowed down” and that there is “a lot of burden on unpaid wages”.