First, at first glanceEvergrandePropertywith itActual controllerXu JiayinThe identity of the sonChina Evergrande GroupIt seems a bit bizarre. But in reality, there are more details and motives behind this. EvergrandePropertyYesChina Evergrande Groupof the subsidiary, whileEvergrandeHowever, the Group failed to repay the pledge on timeBanksof deposits, causedEvergrandePropertyof deposits suffered enforcement. EvergrandePropertyIn order to protect their own rights and interests, they had to takeLawsmeans towardChina Evergrande GroupRecovery of the executed deposit and interest.
The background of the case is, for the sake of mitigationEvergrandeThe Group's real estate business and financial pressure,EvergrandeThe group has beenEvergrandePropertyand its subsidiariesPledge of certificates of depositGiveBanksto get a loan. However, when the loan matures,EvergrandeThe Group's failure to meet its repayment obligations resulted in:BanksEnforcedEvergrandeProperty13.4 billion yuan of pledged deposits. This move not only letsEvergrandePropertyhas also exacerbated the imbalance of its balance sheet.
According toEvergrandePropertyIn the interim report released, the company's total assets as of June 30, 2023 were 76100 million yuan, with a total debt of 83600 million yuan, the insolvent part is 7500 million yuan. And if the 13.4 billion yuan deposit is not executed,EvergrandePropertyThe total assets will exceed 21 billion yuanDebt-to-asset ratioIt will also drop sharply, and it will be able to sell better**, and the stock price and market capitalization will also increase.
ForEvergrandeProperty, the indictmentChina EvergrandeThere are three main purposes. First of all, it sends a signal to the outside world to actively recover losses by filing a lawsuit. Although the timing and outcome of the recovery of the funds remains uncertain, the lawsuit itself isEvergrandePropertyA way to show a positive attitude. Secondly, this move is alsoEvergrandePropertyPrepare for offshore debt restructuring. The offshore debt restructuring of a similar real estate company Sunac has been successfully completedEvergrandeThe debt restructuring package has not yet been obtainedCreditor CommitteeApproval. ForEvergrandeIt is crucial to resolve the issue of offshore debt restructuring as soon as possible, because only after the debt problem is resolved, can more energy be put into domestic real estate projects. As mentioned in the previous debt restructuring plan,EvergrandePropertyofwill be part of the repayment of debts. Therefore, the possibility of recovering 13.4 billion yuan of deposits is reservedEvergrandePropertyvalue and the ability to take on more debt.
Finally, through prosecutionChina Evergrande GroupEvergrandePropertyAble to interruptStatute of Limitations。ChinaLawsprescribedStatute of Limitations3 years, and if the debt is not asserted within this period, the right to prevail will be forfeited. EvergrandePropertyThere is a possibility that the filing of the lawsuit will be interruptedStatute of Limitationsand restart the 3-year term. In the future, we may see more announcements like this, after allEvergrandePropertyThe subsidiaries have also suffered losses caused by illegal pledges, and they may sue one after anotherChina Evergrande Group。This so-called "son sues Lao Tzu" drama is a well-known real estate company in ChinaEvergrandeSuch a company has a total debt of up to 2The 4 trillion yuan super-large enterprise is also impressive.
In short,EvergrandePropertyComplaintsChina Evergrande GroupThere are both reasons behind it and exposureEvergrandeProblems in the group's internal management and financial risk control. EvergrandeGroup withEvergrandePropertyAlthough it is a company under the same holding group, it is inLawsHowever, they are independent entities, and their respective assets and liabilities cannot be mixed. EvergrandeThe group willEvergrandePropertyThe deposit is pledged toBanks, which eventually leads toEvergrandePropertyloss of funds and debt issues. This is also a wake-up call for other real estate companies to strengthen risk control andMoney managementto avoid irreparable losses to the subsidiary due to internal financial problems. At the same time, forInvestmentsIt is also necessary to be vigilant about the internal relationships and financial status of real estate enterprises to avoid losses.
Now,EvergrandeThe group is facing the dual dilemma of restructuring huge debts and operating pressure, which has aroused widespread attention from the market and the public. Anyway,EvergrandeThe challenges and problems faced by such a mega-real estate company are huge and complex, so we can't tell what will happen in the future. However,EvergrandePropertyAs well as the wholeEvergrandeThe situation of the group is a wake-up call. It is hoped that the real estate industry in the future can learn from this incident and strengthen internal risk control and management to protect itInvestmentsjointly promote the healthy development of the real estate industry.