China Evergrande Group, the world’s most-indebted property developer, on Sunday reported a narrower net loss for the first half of the year, thanks to a rise in revenue, reports Nikkei Asia. Evergrande said its January-June loss was RMB 33 billion ($4.53 billion) versus a RMB 66.4 billion loss in the same period a year earlier.
The developer is at the center of a crisis in China’s property sector that since late 2021 has seen a string of debt defaults, unfinished homes and unpaid suppliers, shattering consumer confidence in the world’s second-largest economy. This month, missed US dollar coupon payments by China’s largest private developer, Country Garden, fanned concern of contagion in an economy already weakened by tepid domestic and foreign demand, faltering factory activity and rising unemployment.
In a filing on Sunday, Evergrande said first-half revenue rose 44% from a year earlier to RMB 128.2 billion, as it “actively planned for the resumption of sales and successfully seized the short boom of the property market that emerged at the beginning of the year”. Cash fell by 6.3% to RMB 13.4 billion.