After Xu Jiayin**, an even more bizarre scene happened, Evergrande Property sued to recover 13.4 billion deposits.
Introduction. After Xu Jiayin was arrested, Evergrande received another heavy blow, and Evergrande Real Estate actually sued Evergrande. Such a strange scene shows that Evergrande Group has more and more problems. As Evergrande Real Estate, a subsidiary of Evergrande, it dares to sue Evergrande Group, there must be some ulterior secrets in it.
Evergrande financial crisis.
There is a very complex connection between Evergrande Real Estate and Evergrande, Evergrande Real Estate was once considered a major asset of Evergrande, but due to the intensifying financial crisis of Evergrande, Evergrande Real Estate also faced the same problem. Evergrande Real Estate suddenly broke out at the end of 2021, and Evergrande Bank used Evergrande's 13.4 billion yuan of savings, causing huge losses. Previously, Evergrande Real Estate mortgaged Evergrande's loan, but this time, Evergrande's account had problems and was transferred from its account by a bank. The occurrence of this accident has made the market value of Evergrande Real Estate **, and has a great impact on the company's reputation and future development.
Hopson Development Bidding Contract.
In 2021, Evergrande Real Estate Company, co-founded by Evergrande and Zhu Mengyi, purchased shares of Evergrande Real Estate and finally completed the business with 20 billion **. But just as the deal was coming to an end, Evergrande temporarily changed its mind and put all the blame on Hopson. Hopson issued a statement saying that Evergrande had made a request for an advance payment to it, but the company had not finished its research on the project because it was afraid that Evergrande Real Estate would not be able to obtain funds from Evergrande and other affiliates. Hopson's concerns are not wrong. Immediately afterwards, Evergrande Real Estate's 13.4 billion funds were exposed, that is to say, once Hopson Company defaulted on this money, it would be in great trouble. The accident also made Evergrande's internal problems more prominent.
Evergrande family business self-examination.
After the incident, Evergrande organized an investigation team to conduct an in-depth study of the matter, but obtained some unsatisfactory conclusions. After verification, Xia Haijun, Pan Darong, and Ke Peng conspired to **13.4 billion yuan, and on this ground, all three resigned from their posts. However, a few months later, Evergrande released a more detailed investigation report, but this time Xu Jiayin claimed to have no knowledge of the matter, only saying that someone else asked him to sign it, and did not read it carefully. However, the lawyer said that signing the signature meant that he already knew about it, so he was responsible for it. Immediately afterwards, Evergrande's high-level officials were arrested one after another, Pan Darong, Ke Peng and others were arrested, Xia Haijun was nowhere to be found, some people said he went abroad, some people said he came back, but it was not confirmed.
Evergrande real estate lawsuit and recovery of losses.
Now, Evergrande Real Estate has filed a lawsuit against Evergrande in order to recover the 13.4 billion funds that have been embezzled. According to the agreement at that time, Evergrande Real Estate planned to recover the first batch of 2 billion yuan of assets in three sets of mortgages. Although Evergrande Real Estate's revenue and profit in the first half of this year are okay, a large amount of funds have been transferred to make its market value**. However, it is not easy to recover the money. Evergrande Group's current liabilities are 23 trillion, while his net worth is only 17 trillion, his debt has already reached billions. Evergrande Real Estate may have filed this lawsuit to explain to other shareholders, and at the same time hope to recover some of its losses when Evergrande is finally liquidated.
The consequences and reflections that come with it.
The reason why Evergrande encounters such problems is that in addition to its own operating conditions, it is also closely related to changes in the outside world. Compared with two years ago, the real estate ** is very different from two years ago, even if Evergrande Real Estate recovers 13.4 billion, it will be difficult to recover its value. At the same time, Evergrande is also facing huge financial pressure, and may even be forced to liquidate. Therefore, Evergrande Real Estate sued Evergrande, perhaps just to protect its own rights and interests and recover some losses. Looking at the whole thing, the encounter between Xu Jiayin and Evergrande really makes people sigh, which is in response to the sentence: If people don't do it, they will be blessed.
All in all, after Xu Jiayin was arrested, Evergrande Real Estate sued Evergrande, which attracted widespread attention. The entanglement and twists and turns of various interests involved in the company's listing process make people put forward higher requirements for the connection between entrepreneurs and the company and the internal management of the company. Evergrande's financial crisis, Hopson's merger and acquisition case, Evergrande's internal control review, and Evergrande Real Estate's lawsuit are just a small episode of Evergrande. Therefore, Evergrande is facing a major problem, that is, to get out of the predicament as soon as possible, reshape the image of the enterprise, and reshape the corporate image. It is also a warning to China's private entrepreneurs, private enterprises and their family members, that is, to strengthen the internal management of the company and prevent the adverse consequences caused by the company's own problems.