China's football club Guangzhou Evergrande and Taobao reported a loss of 1.8 billion yuan ( US$267 million) in 2018, according to the National Equities Exchange and Quotations(NEEQ) listed company's annual report released on Wednesday.

The club recorded an operating cost of 2.43 billion yuan (361 million dollars), and operating revenue of 603 million yuan (90 million dollars) in 2018.

According to the financial regulations issued by the Chinese Football Association (CFA), the total permitted expense for a super league club amounts to around 174 million US dollars in 2019, and will decrease year by year to 130.5 million dollars in 2021. In the 2019 Chinese Super League (CSL) season, the deficit cap will be set at 46.4 million dollars.

Evergrande have to cut at least over 50 percent of their expense and more than 80 percent of deficit in 2019, or they will be penalized by the CFA.

The Brazilian duo Paulinho and Anderson Talisca cost Evergrande a transfer fee of 651 million yuan (97 million dollars), which exceeded the limitations set by CFA. The club have to pay the same amount of "transfer fee tax" according to the regulations issued by CFA.

Guangzhou finished second place in CSL in 2018, ending a run of wining the champions for seven consecutive years.

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