By HUANG Yu

Real estate giant, Evergrande, has finally released its 2021 report, 2022 interim report and 2022 annual report. The reports revealed net losses of 686 billion yuan (US$96 million) in 2021 and 126 billion yuan in 2022.

Real estate assets suffered massive losses. Non-operating losses exceeding two hundred billion yuan. Facing insolvency, net assets are negative 600 billion yuan.

Regarding Evergrande's 2022 financial report, auditors issued a non-standard report stating they were unable to express an opinion, pointing out uncertainties about Evergrande's ability to continue operations and questioning its debt repayment and asset liquidation capabilities.

As of the end of 2022, Evergrande had over a thousand projects in progress and considerable land reserves, which might offer some relief to its current predicament. However, it will be exceedingly challenging for Evergrande to restore normal operations without several hundred billion yuan in financing.

Considering current market conditions, for Evergrande to alleviate its liquidity pressure, the most critical task is overseas debt restructuring. Evergrande will convene a meeting on overseas debt restructuring later this month in Hong Kong.