Building 70 million square meters, Xu Jiayin “disassemble” Evergrande crisis
Never allow a fire sale of company assets.It is a demand Mr Xu has made several times over the past year.As 2022 begins, evergrande’s every move is still the focus of the market.On February 6, 2022 in Evergrande cover on the floor of the New Year starts mobilization meeting, Mr Xu said that starting in June last year, he has been emphasized at any time can’t sell the assets of the company, pay attention to prevent loopholes exist in the process of asset disposal, cannot rely on the assets too cheaply to pay off debt, or the assets sold are hard to pay off debt.Evergrande’s problems cannot be solved overnight, and a fire sale of assets is not the best way.It is necessary for Evergrande to dissolve the crisis by gradually disassembling, ensuring delivery and restructuring.On January 26, Evergrande issued a statement saying that it is pushing auditors to promote relevant work, and will continue to listen to the opinions and suggestions of creditors, and strive to come up with a restructuring plan in the next six months.In fact, evergrande currently has 56 million square meters of unlicensed projects under construction, 160 million square meters of land reserve and 150 redevelopment projects.From the current asset reserve perspective, Evergrande may indeed have a soft landing, but the difficulty is really not small.From the richest man to the disposal of real estate, the current status of Evergrande is the direct result of Xu jiayin’s previous strategic decisions.How “beautiful” before, now there is much pain.As early as 2015, Vanke chairman Yu Liang had predicted that the golden age of real estate has passed.Wang Shi also said that the era of making money by digging holes is over.However, facing the “depression era” of third-tier and fourth-tier property markets, Evergrande, Country Garden and Sunac are obviously unwilling to give up this opportunity.Taking 2015 as a time node, some housing enterprises began to increase leverage and expand greatly, which is also the cause of today’s “tragedy”.From 2015 to 2018, evergrande, Country Garden and Sunac were the three companies that expanded the fastest compared to other real estate companies, while their debts also skyrocketed.When the third and fourth tier became the “main battlefield” of real estate enterprises, Country Garden overtook Vanke and became the “cosmic real estate enterprise”, followed by Evergrande. However, they did not realize that the previous scale first model would bring great trouble to them.Statistics show that from 2015 to 2016 alone, evergrande’s liabilities jumped to 1.160 billion yuan, and its asset-liability ratio also reached 85.9%.Behind the crazy expansion is a relatively big division, some expansion, some withdrawal.It was also at this time that Wang Jianlin of Wanda began to divish the real estate business, which was fully prepared in the early stage. Therefore, after the double murder of Wanda stocks and bonds, Wang Jianlin resolutely cut down the cultural tourism and disposed of a large number of hotel businesses, so that Wanda could quickly turn the corner.In 2017, Evergrande added 126 million square meters of land, a record high.In the same year, The Hurun Rich List was released and Xu jiayin became the richest person in China with a net worth of 290 billion yuan.In the days when he became the richest man, Xu Jiayin may not be happy, because the industry’s “winter” is coming faster than expected.In 2018, several accidents caused Yang guoqiang a headache, perhaps feeling something, country Garden has been known for strong turnover stepped on the “brake”, slowing down the pace of expansion.At the same time, Evergrande also began to look elsewhere, so Xu jiayin and Jia Yueting “hand in hand” new energy.Statistics show that from 2018 to 2019 in more than a year, Xu Jiayin has announced in Guangzhou nansha investment 160 billion to establish three new energy vehicle base and signed with the Shenyang municipal government 120 billion new energy vehicle base project.The investment amount of 300 billion yuan a year exceeded the market value of China Evergrande at the time.After two years of buying and buying, Evergrande began to transform from theory to practice.At the end of 2019, “Workshop Director” Xu Jiayin held the Evergrande New Energy Vehicle Global Strategic Partnership Summit in Guangzhou, which brought together the global automotive industry chain and executives to attend the summit.”Big” is the core of Evergrande’s strategy in making cars.Grand pattern, grand strategy and grand scale.At the same time, Evergrande has simultaneously developed 15 models, which is unprecedented in the history of automobiles.To Xu’s surprise, winter came so quickly. Within one or two years, under three red lines, Evergrande has come to this stage.Xu jiayin said: “In the past, when the company was operating normally, the inflow and outflow of capital was very large, such as 1.3 trillion yuan in 2019 and 1.2 trillion yuan in 2020. In the past, we used to build 500,000 or 600,000 houses a year at the peak.The company was in trouble in June last year, and almost no money came in from September last year.In fact, the biggest problem of Evergrande at present is not building cars or debt, but ensuring the payment of housing.At present, Evergrande Group pre-sale supervision funds still more than 50 billion yuan.Xu jiayin also stressed that the development of Evergrande project is not balanced, and the continuity of construction after the resumption of construction will be close to 80 billion yuan of unpaid sales and 90 billion yuan of available sales value of guaranteed building, and this 170 billion yuan is the capital base of continuous guaranteed building.In 2022, according to Xu jiayin’s vision, the target of building 600,000 units, about 70 million square meters, should be completed.If the restructuring goes smoothly, Evergrande may be able to gradually dismantle the crisis and land smoothly.