This article is from , author: Jose, Tang Yuanyuan, title figure from the visual China
Four years ago, the Evergrande Group, which appeared as a white knight, ended the battle between treasures and ten thousand in one fell swoop. Unexpectedly, the road to winning the fruits of victory would be so long and difficult.
On November 8, there is only less than 3 months left from the time limit of January 31, 2021 as agreed in the reorganization agreement that was postponed again. China Evergrande(03333.HK) and Shenshenfang A(000029.SZ) issued announcements separately, and decided to terminate Evergrande and Shenzhen The reorganization plan of Shenfang put a helpless end to this long wait of 4 years.
This result is a lose-lose for Evergrande and Shenshenfang A. For investors who have been locked up for 4 years due to trading suspension, it is even more miserable.
Constrained by the low valuation of H-shares for real estate companies for a long time, in exchange for more support for the restructuring of Shenzhen Real Estate and seeking A-share listing, Evergrande bought the 14.07% Vanke shares with real money and did not hesitate The loss of 7.07 billion yuan was transferred to Shenzhen Metro Group, a subsidiary of the Shenzhen Municipal Government. It even launched three rounds of investment attraction plans of up to 130 billion yuan to return to A shares.
As things change, although during the reorganization period, Evergrande has repeatedly stated that it will return to A sharesDifficulties.
Since the initiation of the Backdoor Return A plan, Evergrande has successively introduced three rounds of strategic investors, raising a total of 130 billion yuan. These investors include investors including CITIC, Zhongrong, Zhengwei Group, Huaxin, Suning, Shandong Expressway, Shenye Group, Shenzhen Guangtian, etc., who have acquired 36.54% of the enlarged equity of Evergrande Real Estate, and China Evergrande holds The remaining 63.46%.
The third round of capital introduction took place on November 6, 2019. Evergrande announced that Kailong Real Estate, Evergrande Real Estate and the company’s controlling shareholder Xu Jiayin entered into the third round of capital increase agreements with the third round of investors to introduce 60 billion yuan. Among them, Suning Appliance Group invested 20 billion yuan. So far, Evergrande Real Estate has introduced 130 billion yuan through three rounds of strategic investment, and the total valuation of Evergrande Real Estate has been mentioned to 425.23 billion yuan. At the same time, Evergrande postponed the final date of the restructuring agreement for one year to January 31, 2021 in the announcement.
It is worth noting that in this round of war investment, Suning Appliance’s funding amount was the highest, reaching 20 billion yuan, accounting for 4.7038% of Evergrande’s capital increase.
On September 24, an Evergrande Group “Report on Requesting Support for Major Asset Restructuring Projects” began to circulate on the Internet. The report, which was almost distressed and sent to the government, stated that if Evergrande Real Estate cannot complete the reorganization with Shenzhen Real Estate A on time, it must repay the strategic investor 130 billion yuan in principal and pay 13.7 billion yuan on January 31, 2021. Dividends, 130 billion from equity to liabilities, the asset-liability ratio will rise to more than 90%, which will trigger the Evergrande Group to cross default in relevant banks, trusts, funds and other financial institutions and bond markets.
At the same time, Suning also stated at the semi-annual performance meeting that if Evergrande Group fails to return to the A listing by the end of January 2021, Suning may exercise the repurchase right and require Kailong Real Estate to repurchase its shares with 20 billion yuan in cash. Equity in Evergrande Real Estate.
Hengda has signed a supplementary agreement with 86.3 billion of the 130 billion war investment to ease the restructuring storm in less than a week. On September 29, Evergrande announced that Zhantou agreed to switch to common equity long-term holding, and the equity ratio remained unchanged. For the remaining 43.7 billion war investment, Evergrande has completed negotiations with the 15.5 billion war investment, and is currently in the process of going through the formalities, and the 28.2 billion war investment is under negotiation.
Xu Jiayin, Chairman of the Board of Evergrande Group, Zhang Jindong, Chairman of Suning Holdings, Wang Wenyin, Chairman of Zhengwei International, Ye Yuanxi, Chairman of Grandland Holdings, Shao Mingan, Chairman of Anxin Trust, Tian Jiayu, Chairman of Jiayu Group, etc. 1300 Senior executives of billion strategic investors attended the signing ceremony.
On November 8th, while announcing the termination of the reorganization, Evergrande>
Regulatory constraints have also begun to strengthen. In the “three red lines” indicators for real estate companies under the guidance of the Ministry of Housing and Urban-Rural Development and the Central Bank, according to the 2019 annual report data, Evergrande’s coefficient is fully stepped down, of which the net debt ratio is as high as 159%, excluding advance receipts The subsequent asset-liability ratio is 83%, and the cash short-term debt ratio is 0.61.
In order to save its own cash flow, Evergrande Real Estate was ahead of other real estate developers by launching a full-scale online house sale as early as February 2020, and launched a series of “buy houses at the lowest price” and “check out without reason” on Hengfangtong. Concessions, lower the subscription threshold to 2,000 yuan, and start a minimum 78% discount.
Under a series of stimulus measures, the latest performance data released by Evergrande shows that a total of 181.97 billion yuan in sales was achieved from September to October, and the cumulative sales in the first 10 months were 632.59 billion yuan, which has exceeded the total of 601.06 billion yuan in 2019. Sales, to achieve 97.3% of this year’s 650 billion yuan sales target. At the current sales rate, Evergrande is expected to exceed the annual sales target of 650 billion yuan ahead of schedule, and is expected to sprint towards the internal control target of 800 billion yuan.