00:00 After 17 months of suspension of trading on Evergrande's shares, today the shares are back trading.
00:09 But the losses incurred by this company in today's trading were to a large extent measurable.
00:16 Let's take a look at what happened in today's trading for these trading.
00:20 What is the plan that the company announced and how was it agreed to resume trading on its shares?
00:28 First, let's talk about the suspension of trading after it was suspended in March 2022.
00:34 Only in today's session, we saw a 78% return on the shares.
00:39 The shares were closed at 22 cent levels.
00:43 The last trading session for the company 17 months ago, we saw 65 Hong Kong dollars levels.
00:55 This means that the market value of this company declined from more than 50 billion dollars in 2021 to 586 million dollars.
01:07 The company said that its request to resume trading on its shares comes with its disclosure that it worked on what is known as the internal control system.
01:19 It agreed to the terms of the system and therefore requested to resume trading on its shares.
01:26 But the losses were minor in today's session, even if we compare it to the market value 17 months ago.
01:35 The interesting thing today is that the company was previously, with its activation of Chapter 15,
01:41 or the request for protection against bankruptcy in Manhattan Court,
01:45 after this, it announced that it will hold a meeting with its creditors to discuss the details of the restructuring of the structure for its debts.
01:58 Today, the company announced that it postponed this meeting.
02:02 This meeting was supposed to be today, but it was postponed until the end of September.
02:07 It said that the reason for this is to give investors an opportunity to understand what happened to the company,
02:15 and also to see how the movements were for the company's shares in the first trading sessions.
02:20 The movements were not positive at all.
02:23 In any case, we are talking about a very bad financial situation for this company.
02:29 We are talking about net losses that reached, at the end of the first half of this year, 4.5 billion dollars.
02:37 The revenues rose by about 44% annually.
02:40 But this is not what matters to the investor.
02:42 What matters to the investor is the cash buffers.
02:44 How many liquidity does the company have to complete its projects and at the same time reach an agreement with the creditors?
02:52 The cash buffers for the company reach only 13.4 billion yuan.
02:57 This is a very low number for a company of Evergrande's size,
03:03 which has to continue in its construction process.
03:09 These are the levels of debts that we have seen until the end of the first half.
03:14 The cash flow was 1.8 billion dollars, and the revenues were also in the first half of this year.
03:23 This company is not only a threat to any of its investors, but also to the Chinese real estate market as a whole.
03:31 We have heard about the difficulties that Country Garden is facing.
03:35 The main problem for these companies today is, first, high debt,
03:40 and second, there is not enough liquidity for the companies that work in real estate development in China.
