Recently,EvergrandeCarsThe announcement said that the share subscription agreement signed with Newton Group has expired. This news letsInvestmentsThe people panicked because it meant thatEvergrandeCars's self-help operation suffered a fiasco. Newton Group originally planned to:EvergrandeCarsStrategyInvestments$500 million and provide 600 millionRMBof bridging funds. However, the lapse of the agreement means that this funding is ultimately aborted, givingEvergrandeCarsBrings a huge dilemma.
EvergrandeCarsIt has always been consideredEvergrandeOne of the Group's most important high-quality assets, if it can be recovered, it will greatly enhance the confidence of creditors. But lost the Newton GroupInvestmentsEvergrandeCarsFacing the risk of downtime. According to the semi-annual report data,EvergrandeCarsIn the first 6 months of 2023, 1revenue of 5.5 billion, but the gross loss reached 60.88 million, a significant increase of 532% year-on-year. As of June 30, 2022EvergrandeCarsThe loan was 27 billion, which was not repaidDebtUp to 93400 million, and the cumulative number of overdue commercial bills reached 35900 million, and the total debt exceeds 75.6 billion. At the same time,EvergrandeCarsof cash and cash equivalents were less than 96.89 million. Newton Group's funds areEvergrandeCarsThe life-saving money that prolongs life has now lost this part of the fundsEvergrandeCarsThe predicament is even more difficult to reverse.
The exit of the Newton Group makes:EvergrandeThe Group is facing an even more dire situation. EvergrandeThe Group has been in talks with domestic and foreign creditors over the past few monthsDebtConvert to equity. However,EvergrandeThe huge amount of the groupDebtMake it difficult for creditors to let go, whether it is looking for a new oneInvestmentsStillDebtReorganization, progress has been very slow. Newton's exit weakened even moreEvergrandeThe hope of the group to find a savior, also letEvergrandeThe Group is at risk of possible insolvency.
According to industry sources, if the risk mitigation committee is unable to provide a viable one by the end of this monthDebtRestructuring plan,EvergrandeThe group will face the fate of liquidation. However, the current situation seemsEvergrandeThe bloc seems ready to give up. InChina Securities Regulatory CommissionRightEvergrandeAfter the real estate investigation, the company has lost the issuance of newBillsEligibility. PreviousDebtThe restructuring plan has not been able to be implemented, which is related toEvergrandeThe group's divestment is directly related. Even ifChina Securities Regulatory CommissionWilling to giveEvergrandeSome opportunities for the group may be too late.
EvergrandeAs a leading company in China's real estate industry, the Group's crisis has raised concerns about the entire real estate market. InEvergrandeFacing the pressure of bankruptcy and bankruptcy, China's real estate market is likely to take a hit, especially for those withEvergrandeHave business dealingsQuotientand partners, they can be at great risk.
EvergrandeGroup'sDebtThe problem is not limited toEvergrandeCars, which is under its umbrellaEvergrandeReal estate is also facing huge sumsDebtand unliquidated litigation cases. According to the announcement, by the end of November 2023,EvergrandeThe number of real estate-related litigation cases reached 2,053, with a total amount of more than 490 billion. and the failure to pay the dueDebtThe total amount reached 316.4 billion. These numbers are hard for creditors to believeEvergrandeThere is also the ability to continue to operate, and it also makes people feel goodEvergrandeThe management of the group has lost trust. EvergrandeThe Group's predicament is not just an isolated case, but also reflects the challenges and risks facing China's real estate market as a whole.
EvergrandeThe predicament faced by the Group has reached a very serious point. The exit of the Newton Group means:EvergrandeThe group lost important financial support, and a series ofDebtThe problem also makes the creditor rightEvergrandeConcerns about future performance. EvergrandeThe group's crisis has also raised concerns about China's real estate market, particularly with the groupEvergrandeHave business dealingsQuotientand partners, they can be at great risk.
EvergrandeThe Group's challenges are not just a single case, but are closely related to the problems in China's real estate market as a whole. China** has introduced a number of policy measures to curb the overheating and risks of the real estate market, however, these policies are not as good as:EvergrandeFor such a large real estate company, it is too late to avoid its troubles. For China's real estate market, how to resolveEvergrandeThe crisis of the group and maintaining the stability and healthy development of the market is an important issue.
In addition,EvergrandeThe crisis of the group also reminds us that companies should pay attention to the process of doing businessRisk managementand brand image building. A healthy, transparent and trustworthy corporate image is one that the company obtainsInvestmentsIt is also the foundation of trust between the company and creditors, and it is also the basis for businesses to remain resilient and respond to challenges in times of crisisCritical。Enterprises should strengthen internal management and establish a goodRisk managementsystem, thereby improving the adaptability and resilience of the enterprise.
All in allEvergrandeThe group is facing a huge dilemma, and its crisis is not only affectingEvergrandeIts own development has also raised concerns about China's real estate market. In thisCriticalAt the moment, enterprises and all sectors of society should work together to find solutions to promote the stable and healthy development of the market for ChinaEconomyto contribute to sustainable development.