In 2022, Evergrande’s every move is still the focus of the market.
Recently, an administrative punishment decision issued by the comprehensive administrative law enforcement bureau of Danzhou City, Hainan Province was circulated on the Internet. The administrative punishment decision said that Danzhou Xinheng Tourism Development Co., Ltd. is located in the third (sixth) phase of Island 2, Haihua Island, Baimajing Town, Danzhou City. It has built 39 buildings with a total construction area of 434941.46 square meters. The planning license obtained in violation of the law has been revoked The project violates the provisions of Article 40 of the urban and rural planning law of the people’s Republic of China. According to the provisions, the company is hereby ordered to dismantle the above illegal buildings within 10 days. If the demolition is not carried out within the time limit, the law enforcement bureau will organize the demolition according to law. The document is signed on December 30, 2021 by Danzhou comprehensive administrative law enforcement bureau.
According to the information of enterprise investigation, Danzhou Xinheng Tourism Development Co., Ltd. was established in 2015 with a registered capital of RMB 80 million, and Danzhou Xinheng Tourism Development Co., Ltd. is a wholly-owned subsidiary of Evergrande children’s World Group Co., Ltd.
For the above news, the reporter asked Evergrande for confirmation, and the relevant personnel said that the company was verifying the news.
Public market information shows that Haihua island is known as the world’s largest artificial island. According to the data, Hengda Haihua island is located in the bay area of Danzhou City, Hainan Province. The island is composed of three independent offshore islands, with a planned reclamation area of about 8 square kilometers. The planned plane shape is three flowers blooming in the sea, so it is called “Haihua island”. The “Haihua island” project is planned to have international convention and Exhibition Center, museum group, fairy tale world, water park, ocean world, international shopping center, modern hotel group, five countries hot spring city, Huaxia film and television base and other business formats.
The reporter searched the website of Danzhou Municipal People’s government and found that the Haihua Island project of Xinheng Tourism Development Co., Ltd. has been issued an administrative punishment decision by Danzhou ecological and Environmental Protection Bureau for many times.
In December 2020, Danzhou municipal government publicized the completion of the rectification task of the third central ecological and environmental protection inspector, and implemented the rectification of 39 residential buildings in plot 2-14-1 of Haihua island. On the basis of ordering the overall shutdown of 39 residential buildings, withdrawing the pre-sale license and revoking the registration form of environmental impact of construction projects for the record, this paper puts forward a proper disposal plan for 39 residential buildings.
On December 27, 2021, Danzhou City issued the publicity of the people’s Government of Danzhou City on the completion of the rectification task of the third central ecological and environmental protection inspector. Danzhou City issued a suspension order for 39 residential buildings on May 10, 2020, resulting in the overall suspension of the project; And temporarily withheld 2 construction permits for 39 residential buildings in accordance with laws and regulations.
Xu Jiayin: never give up and carry out the guaranteed delivery to the end
At present, Evergrande, confidence is more important than gold.
In the face of many difficulties, the chairman of Evergrande’s board of directors continued to cheer the whole staff in his New Year speech.
On December 31, 2021, the official wechat of Evergrande group announced that more than 100 buildings in Evergrande ushered in the most important moment – centralized delivery to owners with quality and quantity guaranteed. Evergrande said that it would continue to adhere to the commitment of “guaranteed delivery of the building”. As long as we work together and make persistent efforts, every owner will have a warm and beautiful happy home, and the company will resume sales, resume operation and pay off its debts. ”
Previously, Evergrande also held a weekly meeting on resumption of work and guaranteed delivery of buildings, summarizing the resumption of work and production in December last year. According to the official micro data of the group, as of December 26 last year, the resumption rate of Evergrande’s national projects was 91.7%, an increase of 40 percentage points compared with the “pledge meeting of guaranteed delivery” in early September last year; The number of people returning to work was 89000, which was still 31% higher than that in September last year when many northern provinces entered the winter break.
“Since the company got into trouble, we have delivered less than 10000 units in September, October and November. However, with the comprehensive promotion of resumption of work and production, 115 projects of the group are planned to be delivered in December, and there are still five days left in this month. We must make full efforts to ensure the completion of the target of 39000 units to be delivered this month,” Xu Jiayin, chairman of the board of directors of Evergrande group, stressed at the meeting, “No one of Evergrande is allowed to lie flat”.
Evergrande group also said that at present, more than 80% of the main bodies and decoration units have resumed cooperation with Evergrande, and more than 80% of the long-term cooperative material suppliers have also resumed supply, and 6869 material supply contracts have been signed. The new material supply mode plays a key role in the final hardbound project of “guaranteed delivery building”.
Evergrande did not disclose the above new material supply mode in detail. In its previous announcement, the group said that it was negotiating with suppliers and construction contractors to delay payment or deduct arrears with property to strive for the resumption of the project. Since the middle of the year, Evergrande has stopped many projects due to the debt crisis. China Daily disclosed that as of the first half of this year, Evergrande’s trade accounts payable and other accounts payable reached 951.133 billion yuan, a year-on-year increase of 14.71%. Resumption of work, production and guaranteed delivery of buildings has become one of the important ways for Evergrande to save itself.
Evergrande group has not disclosed monthly sales since September. The latest data comes from the announcement on October 20. From September to October 20, Evergrande group achieved a contract sales amount of 3.65 billion yuan (including the deduction for the sale of property units to suppliers and contractors), with a contract sales area of 405000 square meters. As of the date of announcement, Evergrande group has achieved a total contract sales amount of 442.3 billion yuan this year, with a contract sales area of 54.192 million square meters. Compared with the “golden nine and silver ten” in previous years, this sales data is bleak.
Under the pressure of liquidity, Evergrande announced its default on December 3, saying that the group had received a notice of a guarantee obligation of US $260 million, which may lead to creditors’ demand for accelerated maturity of debts in the event that the group failed to perform its guarantee obligations or other financial liabilities.
Immediately, the Guangdong Provincial Government interviewed Xu Jiayin overnight. In order to effectively resolve risks, the Guangdong provincial government agreed to send a working group to Evergrande to urge and promote enterprise risk disposal. Evergrande also announced the establishment of “China Evergrande group risk resolution committee” on December 6. The Committee has seven members from various industries. The chairman is Xu Jiayin, chairman of the board of directors of China Evergrande, and the co chairman is Liu Zhihong, deputy general manager of Yuehai holdings. In addition, pan Darong, chief financial officer and executive director of Evergrande, Zhao Limin, vice president of China Cinda, Li Feng, chief capital operation officer of Yuexiu group, Guosen Securities Co.Ltd(002736) compliance director Chen Yong Hao Han, partner of Beijing Zhonglun law firm.
On December 22, Evergrande announced that in view of the current risks faced by the group, the risk resolution Committee of China Evergrande group is mobilizing extensive resources and will actively maintain communication with creditors, strive to resolve the group’s risks and safeguard the legitimate rights and interests of all parties.
However, Evergrande also disclosed that due to the change of its cash flow status and capital arrangement, China integrity international decided to reduce the credit rating of Evergrande real estate from BB to B, and reduce the debt credit rating of “19 Evergrande 01”, “19 Evergrande 02”, “20 Evergrande 01”, “20 Evergrande 02”, “20 Evergrande 03”, “20 Evergrande 04”, “20 Evergrande 05” and “21 Evergrande 01” from BB to B, And continue to include the subject and debt credit rating in the observation list of possible downgrades.
On December 31, Evergrande wealth also issued an announcement on the adjustment of the cashing scheme of investment products. The specific scheme is as follows: 1. In December 2021 and January and February 2022, the principal of 8000 yuan shall be paid to each investor every month. If the remaining principal is less than 24000 yuan, the remaining principal shall be cashed. 2. March 2022 and beyond: the company will actively raise funds and further improve the subsequent cashing scheme based on the implementation of Article 1 of the “cashing scheme”, which will be announced in late March 2022. The company will accelerate the disposal and Realization of various assets through transfer, auction, establishment of trust plan, litigation and other channels, and all the funds will be used for the cashing of investment products.
(Securities Times)
