Evergrande's delayed results show significant losses and liabilities.

Hong Kong

July 17 (Reuters) - China Evergrande Group (3333.HK), the world's most indebted real estatedeveloper, announced a combined loss of $81 billion in 2021 and 2022 and a rise in total liabilities in its long-awaited financial results on Monday.

Debt and debt problems

The developer defaulted in 2021 and is now struggling to complete projects and pay off debts to its many suppliers and creditors. After announcing a plan to restructure its overseas debt in March, it is now finding support to complete the process.

With one of the largest debts in the country, Evergrande's debt problems are spreading to China's real estate market, a pillar of the world's second-largest economy, leading to a number of defaults and unfinished homes across the country.

The implications for Evergrande shares

Hong Kong-listed Evergrande shares have been halted from trading since March 21 last year pending its 2021 and 2022 financial results and an investigation into seized deposits worth 13.4 billion yuan in one of its subsidiaries, and so on.

The shares will remain suspended, Evergrande said in a statement on Monday.

Losses and financial results

Evergrande reported a net loss of 476 billion yuan ($66.36 billion) and 105.9 billion yuan ($14.76 billion) for 2021 and 2022, respectively, compared with a net profit of 8.1 billion yuan in 2020, when its operations were normal.

The huge losses were due to land reversions, real estate impairment, losses on financial assets and finance costs.

Debt restructuring

In a separate filing, Evergrande said hearings on its plans to restructure overseas debt will be held in a Hong Kong court on July 24 and in a Cayman Islands court on July 25 for creditors to review and approve the proposal.

The developer has yet to disclose the latest figures for creditor support after the deadline for applying for the incentive was extended to May.

Evergrande, you need to get more than 75% of the cost of debt in each class of debt to successfully pass the plan. It reported in April that 77 percent of Class A debt holders and 30 percent of Class C debt holders expressed support.

($1 = 7.1729 Chinese yuan)