EGRNF - China Evergrande liabilities fall in 2022 but board sees doubt as 'going concern'
2023-07-17 11:40:23 ET
China Evergrande's ( OTC:EGRNF ) total assets slid by 13%, outpacing its total liabilities decline of 5.5% in 2022, the debt-hobbled Chinese property developer disclosed in its long-delayed 2021 and 2022 financial statements.
"Material uncertainties exist in relation to the Group’s ability to continue as a going concern in view of the Group’s future cash flow," Evergrande's ( OTC:EGRNF ) board said in its filing.
Total assets fell to RMB 1.84T at Dec. 31, 2022 from RMB 2.11T at Dec. 31, 2021. Total liabilities fell to RMB 2.44T from RMB 2.58T. Net current liabilities, though, rose to RMB 687.7B from RMB 627.3B.
Cash, cash equivalents, and restricted cash totaled RMB 14.3B at Dec. 31, 2022, down from RMB 28.8B a year earlier.
During the most recent year, the company's loss of RMB 125.8B narrowed from the massive RMB 686.2B loss in 2021.
The 2021 loss included RMB 31.3B fair value net losses on investment properties, a RMB 373.7B writedown on properties under development and completed properties held for sale, RMB 50.4B impairment losses on financial assets, and RMB 46.0B of other net losses.
In 2022, those losses either dropped or reversed to a gain. Evergrande's ( OTC:EGRNF ) loss last year included a RMB 1.81B net gain on investment properties, a RMB 1.69B writedown on properties under development and completed properties held for sale, RMB 12.4B of impairment losses on financial assets, and RMB 38.2B on other net losses.
Total comprehensive expenses for the year fell to RMB 125.4B from RMB 686.6B in 2021, the company disclosed in a filing.
The beleaguered property developer has been struggling with its heavy burden of debt after China's government cracked down on easy lending standards in the real estate sector. In December 2021, S&P declared that Evergrande ( OTC:EGRNF ) defaulted on some offshore notes.
In March, China Evergrande's ( OTC:EGRNF ) long-awaited plan to restructure its offshore notes failed to impress investors.
More on China Evergrande:
- Evergrande Property Services sees working capital sufficient through mid-2024
- China Evergrande EV arm to pursue liablity transfer for $3.6B gain
- China Evergrande unveils restructuring plan for offshore notes
- China Evergrande chairman pledges to pay debt as restructuring drags on
- Evergrande's previous annual financial statements
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China Evergrande liabilities fall in 2022, but board sees doubt as 'going concern'