A. Based on China Evergrande Group Financial Report data for 2020 and 2021, describe your opinion...

  

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A. Based on China Evergrande Group Financial Report data for 2020 and 2021, describe your opinion about the company's financial condition before it was declared bankrupt. B. Do you think that China Evergrande Group's Capital Structure conditions in those years were too aggressive, causing financial difficulties? How does the Modigliani-Miller Capital Structure theory explain this? C. Do you think the decision by the Chinese Evergrande Group to declare bankruptcy at the end of 2023 is the right decision? D. What do you think about the Chinese government's attitude of not trying to rescue the Chinese company Evergrande Group? E. Analyze the share price of China Evergrande Group in the last 3 years before entering a period of financial difficulties. What do you think is the relationship between the company's share price and its financial condition? F What do you think about China Evergrande Group's Value of the Firm before and after being declared bankrunt? CONDENSED CONSOLIDATED BALANCE SHEET ASSETS Non-current assets Property, plant and equipment Fight-of-use assets Investment properties Goodw Intangible assets Trade and other receivables Prepayments Investments accounted for using the equity method Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Deferred income tax assots Current assets Inventories Properties under development Completed properties held for sale Trade and other receivables Contract acquisition costs Prepayments Income tax recoverable Financial assets at far value through profit or loss Restricted cash Cash and cash equivalents Total assets Explain Note T 7 7 7 7 9 10 11 12 13 9 10 13 14 14 30 June 2021 (Unaudited) RMB milion 81,027 19,617 155,407 8,185 13,510 6,955 2,334 115,736 3,562 9,006 8.777 424,982 357 1,278,966 144,514 175,940 4,100 164,004 20,000 1,004 74,855 86,772 1,952,500 2,377,575 31 December 2000 Audited) RMB milion 75.731 18.501 165,860 7.102 10.000 7.249 2461 92,270 1,412 8.230 5.043 300.225 368 1,257.908 146,473 141,706 5,190 151,006 16.334 3.195 21,902 158,762 1.904.904 2,301,150 C EQUITY Equity attributable to shareholders of the Company Share capital and premium Other reserves Retained earnings Non-controling interests Total equity LIABILITIES Non-current liabilities Borrowings Derivative financial aten Deferred income tax oblities Other pay Current Sabilities Derivative financul bes Borrowings Trade and other payables A Contract sabies Total liabilities Note 15 16 30 17 16 17 18 (Unaudited) RMB mon 4,218 122,900 63,610 190,806 220,233 411,041 331,726 64 50,214 11,771 393,775 301 240,049 951,133 215,790 165,406 1.572,750 1,906,534 Total equity and abilities The above concerned consolidated balance sheet should be read in conjunction with the accompanying notes 2,377,575 Authed FIVES milion 4.636 92.786 49.480 140,001 200,530 350,431 081,066 53.142 9.278 443,475 335.477 829,174 185,746 150.000 1,507,253 1,900.728 2.301,150 A. Based on China Evergrande Group Financial Report data for 2020 and 2021, describe your opinion about the company's financial condition before it was declared bankrupt. B. Do you think that China Evergrande Group's Capital Structure conditions in those years were too aggressive, causing financial difficulties? How does the Modigliani-Miller Capital Structure theory explain this? C. Do you think the decision by the Chinese Evergrande Group to declare bankruptcy at the end of 2023 is the right decision? D. What do you think about the Chinese government's attitude of not trying to rescue the Chinese company Evergrande Group? E. Analyze the share price of China Evergrande Group in the last 3 years before entering a period of financial difficulties. What do you think is the relationship between the company's share price and its financial condition? F What do you think about China Evergrande Group's Value of the Firm before and after being declared bankrunt? CONDENSED CONSOLIDATED BALANCE SHEET ASSETS Non-current assets Property, plant and equipment Fight-of-use assets Investment properties Goodw Intangible assets Trade and other receivables Prepayments Investments accounted for using the equity method Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Deferred income tax assots Current assets Inventories Properties under development Completed properties held for sale Trade and other receivables Contract acquisition costs Prepayments Income tax recoverable Financial assets at far value through profit or loss Restricted cash Cash and cash equivalents Total assets Explain Note T 7 7 7 7 9 10 11 12 13 9 10 13 14 14 30 June 2021 (Unaudited) RMB milion 81,027 19,617 155,407 8,185 13,510 6,955 2,334 115,736 3,562 9,006 8.777 424,982 357 1,278,966 144,514 175,940 4,100 164,004 20,000 1,004 74,855 86,772 1,952,500 2,377,575 31 December 2000 Audited) RMB milion 75.731 18.501 165,860 7.102 10.000 7.249 2461 92,270 1,412 8.230 5.043 300.225 368 1,257.908 146,473 141,706 5,190 151,006 16.334 3.195 21,902 158,762 1.904.904 2,301,150 C EQUITY Equity attributable to shareholders of the Company Share capital and premium Other reserves Retained earnings Non-controling interests Total equity LIABILITIES Non-current liabilities Borrowings Derivative financial aten Deferred income tax oblities Other pay Current Sabilities Derivative financul bes Borrowings Trade and other payables A Contract sabies Total liabilities Note 15 16 30 17 16 17 18 (Unaudited) RMB mon 4,218 122,900 63,610 190,806 220,233 411,041 331,726 64 50,214 11,771 393,775 301 240,049 951,133 215,790 165,406 1.572,750 1,906,534 Total equity and abilities The above concerned consolidated balance sheet should be read in conjunction with the accompanying notes 2,377,575 Authed FIVES milion 4.636 92.786 49.480 140,001 200,530 350,431 081,066 53.142 9.278 443,475 335.477 829,174 185,746 150.000 1,507,253 1,900.728 2.301,150