GT Online: Evergrande’s Asset Disposal Progresses Slowly

Written by: Ermat

Image Source: cn.nytimes.com

On December 3, China Evergrande made an announcement that it could not fulfill its guarantee obligation for a US$260 million debt, according to a report by Caixin on December 6. On the same day, the Guangdong government issued an announcement saying that the government was highly concerned about it and immediately interviewed Hui Kayan, the actual controller of Evergrande Group. In addition, the progress of Evergrande’s disposal assets is slow.

Evergrande Group’s system is more complicated, mainly including real estate, property, finance, automobile, Internet and other sectors. Among them. The real estate sector, mainly Evergrande Real Estate, is its most core business. 2021 interim report data show that the total asset size of Evergrande Real Estate is 1,905.643 billion yuan, and the asset-liability ratio is 82.25%. Among them, the interest-bearing liabilities reached 406.076 billion yuan, accounting for 25.91% of all total liabilities.

On August 10, 2021, Evergrande announced that it was “approaching investors to discuss the sale of Evergrande New Energy Vehicle and part of the interests in Evergrande Properties”. In October, Evergrande announced the sale of 51% of Evergrande Property to Hershey for HK$20.40 billion. But it was suspended 16 days later. At present, the property segment has not yet found a receiver.

According to some statistics, from March to November this year, Evergrande realized a total of about 60 billion yuan through sales, which is less than 3% of its total assets.On October 15, the central bank also said in the “third quarter financial statistics press conference” that it was “urging Evergrande Group to increase its asset disposal efforts”. At present, it seems that Evergrande’s asset disposal efforts are far from enough.

Source: 

恒大首现公开市场违约 省政府及多部门介入拒绝“躺平”

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

0 Comments
Inline Feedbacks
View all comments

秘密翻譯組G-Translators

秘密翻译组需要各类人才期待战友们的参与: https://forms.gle/bGPoyFx3XQt2mkmY8 🌹 欢迎大家订阅 - GTV频道1: https://gtv.org/user/5ed199be2ba3ce32911df7ac; GTV频道2: https://gtv.org/user/5ff41674f579a75e0bc4f1cd Dec. 06