BNR – The doomed Chinese real estate behemoth, Evergrande, has announced that it has lost 581.9bln yuan in the past two years. The company failed to fulfil its debt obligation in late 2021. It said that it has tardy revenue to traders in Hong Kong.

The real estate giant stated that it had been suffering from a stifling debt of nearly $300bln.

The massive loss points to the number of crises that befell the company in the past few years. Many real estate firms suffered due to the bearish market of properties in the globe’s 2nd biggest economic power.

According to files the company had submitted to the Hong Kong Stock Exchange, Evergrande stated it suffered losses of 476bln and 105.9bln yuan in 2021 and 2022, respectively.

The company stated that the loss was because of several factors, such as the dropping valuation of property and wealth. Furthermore, the larger borrowing prices were a reason for the company’s failure to pay its debts.

Evergrande was once the best company in trading properties in China. In March 2022, however, the firm’s shares have been removed from trading platforms.

Evergrande’s Struggle with $300bln Debt

The property sector in China suffered greatly when regulations emerged in 2020 about how much large property companies could borrow. In 2021, the real estate giant could not fulfil a critical obligation on time, failing to issue international loan interests of nearly $1.2bln.

The company’s monetary issues have reverberated in the Chinese real estate market. Afterwards, an array of other firms failed to pay their debts and left incomplete buildings and projects across China.

Earlier in 2023, Evergrande announced a strategy to revamp around $20bln in international debt. The firm combined debts of over $300bln as it grew strongly to be the country’s top real estate developer.

Over the last 15 years, the firm’s growth included a variety of sectors such as sports, entertainment and EV manufacturing.