Evergrande’s property service unit unruffled by parent’s liquidity crisis, in talks for refund of guarantee for developer’s loans
- Evergrande Property Service posts operating revenue of 11.8 billion yuan (US$1.7 billion), gross profit of 2.7 billion, net profit of 1.48 billion for 2022
- Evergrande’s services unit says it is in talks for repayment of funds involved under guarantees issued for 13.4 billion yuan loans of the parent
China Evergrande Group’s property service arm said its parent’s liquidity crisis did not have a significant impact on its revenues and it continues to chase funds that were used as pledge for loans to the debt-stricken developer and seized by creditors.
Evergrande Property Service Group reported operating revenue of 11.8 billion yuan (US$1.7 billion), gross profit of 2.7 billion yuan, and net profit of 1.48 billion yuan for 2022, according to filings on Monday evening that revealed its much delayed financial results. In 2021, it had reported losses at the gross and net levels although it had a higher revenue of 13.1 billion.
Shares of Evergrande Property Service Group have been put on trading halt since March 21, 2022 due to the delay in publishing its accounts. It said the delay was “due to the drastic changes in the operational environment of China Evergrande Group”.
It would be mandatory for the new bonds to be exchanged into equities of the corresponding listed firms at maturity – within 24 months in the case of Evergrande Property Services.