At the beginning of this year, Evergrande Group held an important meeting, at which Xu Jiayin summarized 2022 and put forward goals for 2023. He said that as long as all Evergrande people work together, work hard and work hard, they will be able to complete the task of ensuring the delivery of the building, repay debts, resolve risks, and open a new chapter of nirvana's rebirth. However, the news that followed was disappointing. Not long ago, Xu Jiayin was taken compulsory measures on suspicion of violating the law and committing crimes, and Evergrande is facing a huge dilemma.
Evergrande's financial situation is worrying. According to the financial report data, in 2021 and 2022, Evergrande will lose a total of 581.9 billion yuan, and the total debt will be as high as 257 trillion yuan, net debt reached 650 billion yuan. Xu Jiayin kept saying that he wanted to repay his debts, but in fact failed to control the expansion of the debt, which eventually led to his own unfortunate fate.
This is also a wake-up call for other real estate companies. We should not use crooked ways to keep our interests to ourselves and our debts to the state and society. The only way out is to do your best to repay the money and guarantee the delivery of the house. It's a tough choice, but it's the right path.
Recently, Country Garden held a monthly management meeting, and Yang Guoqiang's daughter Yang Huiyan said that even if it is a pot and selling iron, the Yang family must fully support Country Garden. This statement is reminiscent of Xu Jiayin's bold words at the Evergrande meeting. However, how much real gold can the Yang family really come up with to support Country Garden?
According to the Hurun 2023 100 Rich List, Yang Huiyan's total paper wealth is 48 billion yuan. However, this figure does not represent actual cash. In the same period last year, Yang Huiyan's total wealth exceeded 70 billion yuan, but recently, due to the shrinkage of the market value brought about by Country Garden's share price and equity, the Yang family's wealth is also shrinking rapidly.
In addition, Country Garden is currently facing a cash flow crisis and short-term debt repayment pressure. According to the financial report data, Country Garden's short-term liabilities exceeded short-term liquid assets by nearly 100 billion yuan. Whether the Yang family can come up with enough cash in time to support Country Garden's operations is a key issue.
Although the Yang family expressed their full support for Country Garden, considering the existing financial situation and the actual situation of the family's assets, the cash they can really come up with to support Country Garden may not exceed 40 billion yuan. However, Country Garden's loss in the first half of 2023 has exceeded 55 billion yuan, almost exhausting all the cash that the Yang family can come up with.
Therefore, judging from the current situation, the support of the Yang family is only a drop in the bucket and cannot fundamentally solve the predicament of Country Garden. Compared with pinning hopes on the family's smashing pot and selling iron, we should pin our hopes for the future on the stabilization of the property market**.
Xu Jiayin's rhetoric is far from reality, and he cannot control the scale of Evergrande's debt. Similarly, the Yang family's support capacity is limited and unable to solve Country Garden's serious cash flow problems. In the face of these difficulties, real estate companies should truly fulfill their performance responsibilities and do their best to repay the money and ensure the delivery of the house, rather than relying on the so-called support of individuals or families. At the same time, supervision should also be strengthened to prevent similar risks and promote the stable development of the real estate market.