Evergrande Property Services recorded net income of 781 million yuan in the first half, the company said in a Hong Kong stock exchange filing late Thursday. It generated growth across revenue, gross profit margin and area under management. It didn’t declare an interim dividend.
The services provider is a crucial part of Evergrande’s restructuring proposal as the parent developer and its electric-vehicle unit posted a loss of $81 billion and $11.7 billion respectively over the past two years. In March, Evergrande proposed a debt overhaul plan that credit investors can receive new notes maturing in 10 to 12 years or a combination of new debt and instruments tied to the shares of Evergrande’s property-services unit, its electric-vehicle division or the builder itself.
It cautioned on a transaction that sparked the ouster of several top executives and the trading suspension of Evergrande’s three Hong Kong-listed firms last year. About 13.4 billion yuan of deposits at the unit were pledged as security for loans to the parent company, triggering an internal probe that led to the removal of Evergrande’s Chief Executive Officer. In February, Evergrande said it was in discussions to repay the money, including by transferring assets to the subsidiary.