Translation and commentary: Jenny Ball
On November 24, the Hong Kong “Chinese Property Group” announced that it would sell 751 million shares of China Evergrande, and the company’s loss is expected to exceed 10 billion HK dollars. Liu Luanxiong, the owner of ” Chinese Property “, is a well-known HK businessman and a good friend of Xu Jiayin for many years.
Huaren Property stated in its announcement on the 24th that the relevant shareholders have given written approval to the directors to sell 751 million shares of China Evergrande. The sale authorization will be valid from September 23, 2021 to September 22, 2022.
The announcement shows that the cost of “Chinese Property” purchase of 860 million shares of China Evergrande from 2017 to 2018, it’s approximately HK$13.596 billion. Now it is estimated that it’s only worth of HK$2.26 billion after liquidation, with a loss of more than HK$11 billion. The price has shrunk by 85% from the original average purchase price of 15.8 HK dollars per share.
HK wealthy businessman Liu Luanxiong and Chen Kaiyun are important shareholders of China Evergrande, and Chen Kaiyun is the executive director of “Chinese Property”. They have made great profits after purchasing the shares of Evergrande.
According to news from the “Daily Business News” on the 24th, in December 2019, China Evergrande announced an announcement of a dividend of 1.419 yuan per share for the fiscal year ended December 31, 2018. According to the total equity of China Evergrande, the total dividend of China Evergrande reached approximately RMB 18.7 billion. Liu Luanxiong and Chen Kaiyun and his wife hold 9% of the shares of China Evergrande. Therefore, Liu Luanxiong and Chen Kaiyun and his wife received about 1.7 billion yuan in the 18.7 billion yuan of dividends that year.
In addition, judging from Liu Luanxiong and his wife’s purchase of China Evergrande stock in 2017, combined with the stock price trend in the following years, the highest book profit was nearly tens of billions of HK dollars.
As of the close of November 24, the stock price of “Chinese Property” was reported at HK$3.76 per share, with the latest market value of HK$7.173 billion; the share price of China Evergrande was reported at HK$2.78 per share, with the latest market value of HK$36.836 billion.
Commentary: Miles Guo has warned those HK tycoons in 2019 when the young people in HK started protesting against the CCP’s erosion to HK’s 50 years status promised by Sino-British Joint Communiqué since HK downfall in 1997, that if those tycoons and elites didn’t protest against CCP together with the young people, they would be the first target for CCP to ransack their wealth once CCP suppressed the protesting. this day is coming.
Miles also warned the world to watch out that the fall of Evergrande is the first domino card that will lead to the economic collapse of the world.
Source of article: hk.epochtimes.com
Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.