China Evergrande liquidated Xu Jiayin or lost both people and money, and the fate of the company of

Mondo Sports Updated on 2024-02-10

Kunpeng Project

China Evergrande liquidated Xu Jiayin or lost both people and money, and the fate of the company of the same name is different

No matter how well you perform, it will be the "end of the show" in the end.

Recently, the Hong Kong High Court announced the bankruptcy and liquidation of China Evergrande, which has been a "thunderstorm" for more than two years, delaying eight rounds of hearings, and finally coming to an end.

This is a bankruptcy system similar to that of Huaxia.

The company ordered by the court to cease business must cease business, and then carry out property liquidation, and in a certain order, in a certain order, all the property of the company will be distributed by the creditors, and finally the company will be dissolved.

China Evergrande, Evergrande Automobile, Evergrande Real Estate, before China Evergrande declared bankruptcy, all announced a suspension of trading.

*It seems that this has been expected for a long time, and the three stock prices **2087%,18.21%, and 250%。

China Evergrande is now 0163 Hong Kong dollars, its total assets are only 21HK$500 million.

Xu Jiayin, who is trapped in prison, is likely to end up in disrepute, and other companies under Evergrande will also end up in the same fate.

As mentioned before, Evergrande currently has three companies, namely China Evergrande, Evergrande Automobile, and Evergrande Real Estate, which represent three major industries: real estate, new energy vehicles, and real estate.

These three companies are all affiliated with Evergrande, but their futures are not the same.

First, the court ordered bankruptcy to China Evergrande, which is mainly engaged in real estate.

China Evergrande is now close to 24 trillion has reached the brink of bankruptcy, and some experts **, China Evergrande's final solvency is not even 3%.

In other words, if you lend 100 yuan to Evergrande, you can only get less than 3 yuan in interest in the end.

So what about Evergrande?

According to the report, Evergrande's losses have reached more than 100 billion, while the company's net assets have reached 328400 million, has reached the verge of bankruptcy.

Liu Yongzhuo, the managing director of Evergrande Automobile Company, has also **, and Newton Company has terminated the deal with a capital of 500 million US dollars.

Without investors, the future of Evergrande Group is difficult to predict.

So, what will happen to Evergrande Real Estate? Do you want to be like those two people just now?

Evergrande Real Estate issued a statement on November 28, 2023 that it has filed a lawsuit against China Evergrande and three subsidiaries in the Guangzhou Intermediate Court due to the freezing of the company's deposits and claims for damages.

On January 26 this year, three days before China Evergrande's bankruptcy, Evergrande Real Estate once again announced that it had filed seven lawsuits against Evergrande's enterprises, involving total assets of more than 11.4 billion.

Counting the previous 2 billion, Evergrande Real Estate claimed 13.4 billion yuan from China Evergrande and its affiliates.

Why did Evergrande Real Estate sue China Evergrande? Aren't these two men born of the same mother?

Although the two companies belong to Evergrande, they have their own division of labor in terms of operation and finance.

As the saying goes, China Evergrande took away the funds of Evergrande Real Estate, so Evergrande Real Estate will ask China Evergrande for this fund.

However, all this is the appearance, and the deeper reason is that Evergrande is likely to keep Evergrande Real Estate, why? This may be the only remaining company of Evergrande.

The real estate industry is generally a transaction, and everything is over after the sale, but the real estate transaction is different, once delivered, there is a certain management fee.

Although this amount of money is a drop in the bucket compared to the cost of buying a house, the scale of Evergrande Real Estate is too large, and the management fee alone adds up to a lot of money.

Evergrande Real Estate's recently announced results show that as of the first half of this year, its contracted land reached 812 million square meters, and the total contracted construction area reached 509 million square meters.

The company expects that in the first half of this year, the company will complete 61Operating income of 4.5 billion yuan, an increase of 6 over the same period last year2%;Net profit 7900 million yuan, net profit margin reached 129%。

Therefore, Evergrande Real Estate is not only well-funded, but also very profitable, and is the only enterprise that Evergrande can still maintain operations.

It is precisely for this reason that after the suspension of Evergrande Real Estate, more than 6% of the company, seems to want to draw a clear line with its brother China Evergrande through litigation and gain recognition from the outside world.

Because Evergrande Real Estate is still rich and is still the brother of China Evergrande, will China's creditors go to ask for the arrears of Evergrande Real Estate? Probably not.

Just like Evergrande Real Estate sued China Evergrande before, claiming more than 13.4 billion yuan, everyone is a creditor of China Real Estate, and it is not realistic to recover a sum of money from Evergrande.

However, if the creditors turn to Evergrande, the "mother" of the twins, Evergrande Real Estate is likely to suffer indirectly. Why?

First of all, Evergrande, as the controlling shareholder of China Evergrande, has a certain responsibility for China Evergrande, that is, mothers must take care of their children.

However, Evergrande does not have so much money, China Evergrande is on the verge of bankruptcy, Evergrande Automobile is also in debt, and the only hope is Evergrande Real Estate.

Evergrande Real Estate, a real estate company owned by Evergrande, pays Evergrande a part of its earnings every year, and this income is likely to be used by them to fill their own holes.

Will Evergrande Real Estate collapse because of its two elder brothers? The answer is no.

After all, the profits brought by Evergrande Real Estate to Evergrande are only the part they invested.

It's like two older brothers have separated, living separately, and taking care of their own mother is a must, but everyone's child support has to be paid by themselves, not endless support.

Moreover, China Evergrande will soon go bankrupt, and then the creditors will get some property, and everything will be over.

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