After Xu Jiayin**, something even more bizarre happened.
Introductory. Following Xu Jiayin**, Evergrande Group was hit again, and Evergrande Real Estate actually took Evergrande Group to court. This even more bizarre incident highlights the growing problems of Evergrande Group. Evergrande Real Estate, as a subsidiary of Evergrande Group, dared to go to court with Evergrande Group, the actual controller, and there must be major entanglements of interests and important insiders behind it.
Evergrande Group's financial problems.
Evergrande Real Estate is inextricably linked with Evergrande Group, Evergrande Real Estate was once considered an important asset of Evergrande Group, but with the deterioration of Evergrande Group's financial problems, Evergrande Real Estate is also in trouble. At the end of 2021, Evergrande Real Estate collapsed, and 13.4 billion deposits were siphoned off by Evergrande Group, and Evergrande Real Estate suffered heavy losses. Prior to this, Evergrande Real Estate had been providing guarantees for Evergrande Group's loans, but this time Evergrande Real Estate mishandled it, causing the bank to cut off Evergrande Group's deposits. The outbreak of this incident led to the market value of Evergrande Real Estate, which seriously damaged the reputation and development prospects of Evergrande Real Estate.
Hershey's acquisition deal.
In 2021, Evergrande Group and Hopson Development, a subsidiary of the Zhu Mengyi family, reached a preliminary agreement on the acquisition of a controlling stake in Evergrande Real Estate, with the two parties agreeing on a transaction amount of 20 billion yuan. However, when the deal was about to be finalized, Evergrande suddenly reversed itself and blamed Hopson. Hopson Development issued a statement explaining that Evergrande Group asked for early payment, but Hopson Development has not completed the investigation and is worried that it will not be able to receive payment from Evergrande Group and other related companies after acquiring Evergrande Real Estate. As it turned out, Hengsheng's fears were justified. Soon, Evergrande Real Estate embezzled 13.4 billion yuan**, which means that if Hesheng pays this amount in advance, the consequences will be very serious. The occurrence of this incident has further exposed the internal problems of Evergrande Group.
Evergrande Group internal inquiry.
After the incident broke out, Evergrande Group set up an investigation team to conduct an internal investigation, but the results of the investigation were not satisfactory. The conclusion shows that Xia Haijun, Pan Darong and Ke Peng jointly organized the embezzlement of 13.4 billion, which eventually led to the expulsion of the three. However, a few months later, Evergrande Group released more detailed investigation results, and surprisingly, Xu Jiayin said that he did not know, saying that someone else signed on behalf of him, and did not look carefully. But the lawyer explained that signing meant knowing and that he must bear legal responsibility. After a period of time, Evergrande Group executives have been arrested, Pan Dairong, Ke Peng successively, and Xia Haijun's whereabouts are still unknown, there are rumors that he has gone abroad, and there are also reports that he has returned to China, but none of them have been confirmed.
Evergrande Real Estate Litigation and Damages.
Now, Evergrande Real Estate has decided to take Evergrande Group to court in an attempt to recover the misappropriated 13.4 billion yuan. According to the agreement at the time, of the three sets of commitments, Evergrande Real Estate hoped to recover the first set of 2 billion yuan. Although Evergrande Real Estate achieved good revenue and profits in the first half of the year, the huge misappropriation of funds caused its market value to plummet. However, recovering the funds is not an easy task. At present, Evergrande Group has total liabilities of 2.3 billion yuan and net assets of only 1.7 billion, and is already facing tens of billions of debt redemptions. Evergrande's lawsuit may be aimed at holding other shareholders accountable and trying to recover some of its losses in the eventual liquidation of Evergrande Group.
Impact and reflection on follow-up.
In addition to poor internal management, changes in the external environment are also one of the reasons why Evergrande Group is in trouble. The current market situation is very different from two years ago, and even if Evergrande Real Estate recovers 13.4 billion, it will be difficult to recover its market value. At the same time, Evergrande is facing huge financial pressure and may be forced to go bankrupt. Therefore, Evergrande Real Estate may only take legal action against Evergrande Group to protect its own interests and recover part of its losses. Looking back on the whole incident, the fate of Xu Jiayin and Evergrande Group is indeed embarrassing, which is also reflected"If you don't do it, you won't die"The truth.
In short, after Xu Jiayin, Evergrande Real Estate took the initiative to sue Evergrande Group in court, which attracted widespread attention. The complex entanglement of interests and internal twists and turns behind this incident make us have to reflect on the importance of the relationship between entrepreneurs and enterprises and internal governance issues. Evergrande Group's financial problems, Hershey's acquisition transaction, Evergrande Group's internal investigation, and Evergrande Real Estate's legal recourse are all manifestations of Evergrande Group's internal problems. How to solve these problems and restore the company's development and reputation is an important issue facing Evergrande Group. At the same time, it also reminds other entrepreneurs and business families to pay attention to internal governance and prevent internal problems from causing damage to the company.