The contract sales of the Chinese real estate company China Evergrande fell last year as the company struggled to repay its creditors, according to CNBC.
A filing of documents on Tuesday showed that the company’s contracted real estate sales stood at 443.02 billion yuan ($ 69.22 billion) last year, down 38.7% from 723.25 billion yuan in 2020.
Evergrande shares resumed trading in Hong Kong on Tuesday afternoon, with the shares trying to maintain gains of about 3%.
It is recalled that yesterday the trading of Evergrande shares in Hong Kong was suspended, pending the announcement of “inside information”, as the company had announced without giving further explanations.
At the time of trading, the stock was trading at $ 1.59 Hong Kong (20 cents), just above the Hong Kong $ 1.42 historical low of $ 24 on December 24, according to FactSet.
The company’s share has fallen more than 88% in the last 250 trading days. The company made no payments to its creditors in December, Fitch Ratings reported.
The company said Tuesday that it “will continue to actively maintain contact with creditors, seek to resolve risks and safeguard the legal rights and interests of all parties.”
The company added that the demolition order for the Ocean Flower Island project concerned only 39 buildings, according to the filing of documents on the Hong Kong Stock Exchange on Tuesday.
Evergrande’s public statements sought to reassure investors that the company was completing and delivering apartments to customers. But demand has waned for the company’s future projects.
Data for the year as a whole show contract sales of just 720 million yuan in just two months, between October 21 and December 31. In contrast, contract sales in August amounted to 38.08 billion yuan and 3.65 billion yuan between early September and October 20.
S&P Global Ratings warned in November that an Evergrande bankruptcy was “very likely” as the company was no longer able to sell new homes. Like other Chinese real estate companies, Evergrande’s business model relies heavily on selling apartments to customers before units are completed.
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Source From: Capital
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