Chinese developer Evergrande Group has been quiet since it missed its first payments in December, pushing its $2bn debt to near-exclusivity and leaving other companies scrambling for leverage to make payments.
By reducing the amount of debt it is facing, Evergrande defused pressure on other firms as it also cut its interest burden and cash flow pressure, it said late Wednesday in a regulatory filing.
Shares of the property developer rose as much as 7.5 per cent in Hong Kong trading, reversing losses of more than 6 per cent on Wednesday and erasing most of the day’s declines.
Evergrande reported a net profit of 2.92bn yuan ($419m) for the first six months of the year, compared with 11.26bn yuan a year earlier. Total revenue rose 67 per cent from the same period last year to 50.84bn yuan.
The results come less than a week after Evergrande issued a statement saying it had paid its last scheduled bond coupon with available cash, avoiding a bond default that some had speculated it might reach.