Shares of bankrupt Chinese property giant, Evergrande Group, crashed 79% on Monday, their first trading day following a suspension of more than 17 months.
Evergrande was the most traded stock in Hong Kong on Monday, with about 1.85 billion shares changing hands.
The results for the first six months of the year were announced Sunday night, with the company reporting a net loss of 33.01 billion yuan, better than the 66.35 billion yuan loss a year ago, but still catastrophic.
The distressed developer posted long-overdue annual earnings reports for the last two years on Aug. 16, revealing a combined net loss of a record 581.94 billion yuan, a reversal from 8.07 billion yuan in net profit in 2020 prior to a crackdown by Beijing on the industry.
Its total cash and cash equivalents, including restricted cash, was 13.38 billion yuan as of the end of June, while net current liabilities were 713.10 billion yuan.
Its electric vehicle unit China Evergrande New Energy Vehicle Group on Friday night separately announced a net loss of 6.86 billion yuan for the first six months of the year, compared to a net loss of 13.36 billion yuan a year ago.
As part of the financial restructuring, China Evergrande Group has proposed selling part of the EV unit to NWTN Automobile, a Nasdaq-listed, Dubai-headquartered mobility product company founded by Chinese entrepreneur Alan Nan Wu. NWTN is willing to acquire 27.5% of the enlarged share capital of Evergrande's EV unit for HK$3.88 billion to "Support [the] business recovery and growth" of Evergrande Group.
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