Entering text into the input field will update the search result below

Evergrande: Not So Grand Financial Statements?


  • Evergrande Group is the latest listed company to unexpectedly teeter on the verge of bankruptcy.
  • Evergrande’s revenue growth fell consistently from 59% in 2016 to 2% in 2019 before recovering to 6% in 2020. The largest drop occurred between 2018 and 2019, when it declined from 49% to 2%.
  • Evergrande’s margins didn’t do well either. Gross profit margin, EBITDA margin, operating profit margin, and net profit margin all decreased between 2016 and 2020.

entrance of China Evergrande Center

LewisTsePuiLung/iStock Editorial via Getty Images

Evergrande Group (EGRNF) is the latest listed company to unexpectedly teeter on the verge of bankruptcy.

When businesses are thrust into public view for the wrong reasons, my first thought is always whether we could

This article was written by

CFA Institute is a global community of more than 100,000 investment professionals working to build an investment industry where investors’ interests come first, financial markets function at their best, and economies grow.

Recommended For You

Comments (5)

Chris Lau profile picture
Evergrande is paying debt with debt: Bondholders to receive new notes or a combination of new debt and instruments tied to shares of subsidiaries.
Chris Lau profile picture
Chinese regulators say Evergrande default an individual case, impact controllable

My favourite sentence of the whole statement: "The recent default of property developer China Evergrande Group is an individual case and will pose little impact on the market."
* pinky swear
Very good but keep in mind that a large company like this in a communist country will never go bankrupt, it may become a government company or it will be guided until the problema is solved. All actors involved are in a way governement dependent and will accept whatever needed solution is proposed…. !!!
@Russom Out of interest, what do you think the effect would be on Western banks that are heavily exposed to this company? The Chinese government can't do much to help that.
good analysis. also need to consider it was based on reported numbers. not saying they were wrong but to what extent were other equity positions and/or financing arrangements that were funded or committed not properly accounted for or disclosed. Valuation of properties held for development, in the process of development or held for sale were validated by what independent third party appraisals or comp sales? There also other issues in the PRC which I won't touch on but I think readers can see where I am going with this. Not just a PRC issue, Trump's real estate and casino debacles took years before lenders who became partners had to recognize their losses.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!


SymbolLast Price% Chg
Div Rate (TTM)
Yield (TTM)
Short Interest
Market Cap
Compare to Peers

More on EGRNQ

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.