China Evergrande’s unit faces heat for not publishing 2021 annual report

(Reuters) – China Evergrande Group said on Tuesday that its Hengda Real Estate Group unit and a company director were facing sanctions from stock exchanges for failing to publish its 2021 annual report.

Under the sanctions, both Shanghai and Shenzhen stock exchanges were critical of Hengda Real Estate and China Evergrande Group executive director Qian Cheng for not filing the report by April 30, 2022.

The embattled property developer, however, backed its executive director, saying he was “still suitable” for the post, and added that the disciplinary sanction would not have any material adverse impact on the business or operations of the group.

The company, with more than $300 billion in total liabilities including offshore debt, sits at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year.

Evergrande said on Monday its listed electric vehicle arm would book a $3.6 billion gain from the transfer of two debt-laden companies to another group unit as part of the auto firm’s restructuring.

(Reporting by Jaskiran Singh in Bengaluru; Editing by Anil D’Silva)