On the evening of January 26, Evergrande Property announced that its three subsidiaries, namely Jinbi Property *** Evergrande Hengkang Property *** and Guangzhou Jinbi Huafu Property *** received a notice from the competent tax authorities: the above-mentioned companies recognized bad debt losses and made partial pre-tax deductions for RMB 13.4 billion of pledged execution funds in 2021, 2022 and 2023, and Evergrande Property failed to provide sufficient supporting materials for bad debt lossesIn 2021 and 2022, there is a risk of underpayment of corporate income tax, which is about 6500 million yuan and related late fees, the tax department required Evergrande Property to correct the declaration.
In this regard, Evergrande Property said that the company has fully reflected the tax payable in the 2021 and 2022 profit and loss statements, and this correction declaration does not involve retrospective adjustment of the previous financial data, and does not affect the net assets and profits of the relevant years.
However, just a day before the announcement, China Evergrande disclosed a dealExempt from 3$7.6 billion in debt.
As part of the transaction, the project company, Shantou Hengming Real Estate Development***, will forgive the transferor and its associates part of their debts to it, which amount to approximately RMB3$7.6 billion; It also agreed that after the completion of the transaction, the outstanding liabilities of RMB 200 million owed by the transferor to the project company will be repaid without interest and liquidated damages, and will be repaid on December 31, 2026. China Evergrande expects to record a revenue of approximately RMB3 in connection with this event0.4 billion yuan.
In addition, the legal dispute between China Evergrande Group and Evergrande Property is intensifying.
On January 26, Evergrande Property once again launched a lawsuit against China's Evergrande company, this time involving 11.4 billion yuan.
Evergrande Property announced that its wholly-owned subsidiary has filed a lawsuit with the Intermediate People's Court of Guangzhou City, Guangdong Province, regarding the enforcement of the deposit pledge of 13.4 billion yuan, and has received a notice from the court on January 25 to formally accept the case.
A total of 7 lawsuits were initiated by Evergrande Property, all of which were related to Evergrande, involving a total amount of more than 11.4 billion yuan. In the lawsuit initiated this time, since three of the defendants have been deregistered, Evergrande Property will also consider additional lawsuits against the shareholders of the relevant companies.
On November 28, 2023, Evergrande Property stated that its wholly-owned subsidiary, Jinbi Property, had filed a lawsuit with the Intermediate People's Court of Guangzhou Municipality, Guangdong Province, regarding the recovery of Jinbi Property's pledge guarantee of about 2 billion yuan of deposit receipts that was enforced by the bank, requiring the relevant responsible parties to repay about 19$9.6 billion and provisional interest of about 1500 million yuan.
In addition to the 11.4 billion yuan recovered, Evergrande Property has launched a lawsuit against Evergrande companies on the "13.4 billion yuan deposit pledge being enforced", which is a more feasible plan that Evergrande Property can take at present.
Judging from the books, Evergrande Property still has the ability to operate, but the stock price has plummeted.
According to the 2023 interim report, in the first half of 2023, Evergrande Property's operating income was about 614.5 billion yuan, a year-on-year increase of about 62%；The gross profit margin was approximately 244% ；Net profit attributable to the parent company 78.1 billion yuan, an increase of 43 percent year-on-year06%。
On January 29, 2024, Evergrande Property was suspended intraday。Before the suspension, Evergrande Property reported 0HK$39 shares, down 25%, with a total market capitalization of 42HK$1.6 billion.
In terms of news, according to the Hong Kong Judiciary **, the High Court of Hong Kong today ruled China Evergrande (03333.HK) winding-up petition for hearing. Judge Chen Jingfen saidEvergrande's debt restructuring plan lacked progress and became insolvent, and Evergrande was finally ordered to liquidateIn the afternoon, the regulatory order will be dealt with and written reasons will be issued. This news triggered a sharp drop in three listed companies including Evergrande Property under Evergrande.