Failed projects, abandoned hotels, empty car parking spaces, deserted shops…the list goes on. Evergrande adopted a “build it and they will come” business model - except that they didn’t come. Indeed, nearly a fifth of properties ever completed remain unsold, while dead assets account for almost a third of total assets excluding cash, a consequence of management’s lack of investment discipline. And yet Evergrande’s financial statements show no evidence of ever taking any write-downs. Are its auditors asleep? Current attempts to outgrow its problems will only compound them. Our calculations suggest asset write-downs of RMB150bn (US$23bn) are needed, 3x shareholders’ equity. The company is insolvent by our reckoning.