Evergrande Group

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Evergrande Group
恒大 集团

logo
legal form Corporation
ISIN KYG2119W1069
founding 1996
Seat Shenzhen
management Xu Jiayin
Number of employees 123,276 (2020)
sales 507 billion yuan
(66.8 billion euro ) (2020)
Branch Real estate industry
Website www.evergrande.com

The Evergrande Group (also China Evergrande Real Estate Group , formerly Hengda Group ) is the second largest real estate company in China in terms of sales . It sells and develops apartments mainly to higher and middle income residents. The company is based in Shenzhen ( Guangdong ), but the holding company is registered in the Cayman Islands .

In mid-2021, the company got into trouble due to high levels of debt: As of June 30, 2021, the company had liabilities of 1.96 trillion. Renminbi (259.2 billion euros ). As a result, its shares plummeted.

Companies

The company currently owns 45.8 million square meters of developing land and real estate projects in 22 cities (including Guangzhou , Tianjin , Shenyang , Wuhan , Kunming , Chengdu , Chongqing , Nanjing , Zhengzhou , Luoyang , Changsha , Nanning , Xi'an , Taiyuan , Guiyang ). This puts the Evergrande Group in second place behind Country Garden among property developers in mainland China. Some of the tallest skyscrapers in the world were designed and developed by the company.

The group also operates a mineral water brand called Evergrande Spring (恒大 冰 泉) and a football teacher school. Evergrande Health , a publicly traded subsidiary of the Evergrande Group, is now the largest shareholder in Faraday Future after acquiring 45 percent of the auto company for a total of $ 2 billion.

From 2018 to 2021, Evergrande was the world's most valuable real estate company. In the Forbes Global 2000 of the world's largest companies, the Evergrande Group ranks 94 (as of 2019). The company came in early 2018 at a market capitalization of around 42 billion  US dollars . In the same year it was ranked 64th in the list of the fastest growing companies. The founder of the company Xu Jiayin (Hui Ya Kan) is one of the richest people in China with a fortune of 34 billion US dollars (2019) .

story

Evergrande Center in Guangzhou

Evergrande used to be known as the Hengda Group and was founded in 1996 by Xu Jiayin in the southern Chinese city of Guangzhou . In October 2009, the company went public on the Hong Kong Stock Exchange with a value of 722 million US dollars.

The group bought and invested in Guangzhou Football Club in 2010 . Since then, the club has been one of the most successful football clubs in the country and won the AFC Champions League 2013 under Marcello Lippi . In 2015, this competition was won a second time. The club won the Chinese Super League seven times in a row from 2011 to 2017 .

In recent years, Chinese real estate developers like Evergrande and Dalian Wanda have made forays into "alternative, income-generating businesses outside of the real estate market." The company is now active in various business areas, including solar systems , pig breeding , agriculture and baby food . In January 2019, Evergrande acquired 51% of the shares of NEVS , which holds the patents for battery-electric Saab. In 2020 Evergrande also acquired the remaining shares.

Debt and stock slump in 2021

In September 2021, the rating agency Fitch lowered its long-term rating for Evergrande from previously CCC + to CC due to high debt and the risk of imminent payment defaults . Evergrande had warned the company was in "unprecedented trouble," but denied speculation about an impending bankruptcy .

On September 14, 2021, Evergrande again warned of liquidity risks due to the decline in its property sales. The company is in talks with potential investors to sell some of its assets, but has not made any "significant progress" so far. Protests then broke out in front of Evergrande's headquarters in Shenzhen. State support for Evergrande is unlikely, according to the editor-in-chief of the Chinese online newspaper Global Times , and the company is not systemically important .

During the crisis, the share price fell within five months by 95% from € 7.52 (April 16, 2021) to € 0.338 (September 17, 2021). On September 20, 2021, the stock plunged again by up to 19% to its lowest level in over 11 years. The stock reached the equivalent of 0.225 €, the lowest level since May 2010. The fall of Evergrande, coupled with the fear of a real estate bubble in China, led u. A. also fell on the stock exchanges of the United States.

See also

Individual references and comments

  1. ↑ a b Annual Report 2020. ( PDF ; 9.7 MB) 中國 恒大 集團 - China Evergrande Group. In: irasia.com. Pp. 23, 81 , accessed on September 17, 2021 (English).
  2. ↑ The Evergrande Group ( Chinese  恒大 集團 / 恒大 集团, Pinyin Héngdà jítuán , Jyutping Hang 4 daai 6 Zaap 6 tyun 4  - "Hengda Group"), also known as Evergrande Real Estate Group Limited (恒大 地產 集團 有限公司 / 恒大 地产 集团 有限公司, Héngdà Dìchǎn Jítuán Yǒuxiàn Gōngsī , Jyutping Hang 4 daai 6 Dei 6 caan 1 Zaap 6 tyun 4 Jau 5 haan 6 Gung 1 si 1  - "Hengda real estate group", coll. 恒大, Héngdà , Jyutping Hang 4 daai 6 ), formerly Hengda Group .
  3. ↑ China's Evergrande tops world's most valuable real estate brand: report - Xinhua | English.news.cn. In: xinhuanet.com . Accessed January 26, 2021 .
  4. ^ Summer Zhen: Evergrande draws eight strategic investors for Shenzhen listing. In: scmp.com. South China Morning Post January 2, 2017, archived from the original October 7, 2019 ; accessed on September 15, 2021 (English).
  5. ↑ a b China Evergrande Group on the Forbes Global 2000 List. Accessed February 24, 2019 .
  6. ↑ Announcement Of Unaudited Interim Results For The Six Months Ended 30 June 2021. ( PDF ; 163 kB) In: irasia.com. P. 5 , accessed on September 17, 2021 (English).
  7. ^ "Evergrande launches IPO with generous terms" ( Memento from August 25, 2008 in the Internet Archive ), Finance Asia
  8. ↑ Evergrande Spring (恒大 冰 泉, Héngdà bīngquán , Jyutping Hang 4 daai 6 bing 1 cyun 4 ), mineral water brand .
  9. ↑ 恒大 冰 泉 概览( Memento from July 1, 2014 in the Internet Archive )
  10. ^ Sean O'Kane: Faraday Future reveals the source of its $ 2 billion investment as a co-founder steps away. June 26, 2018, accessed February 24, 2019 .
  11. ^ China Evergrande Group on the Forbes Growth Champions List. Accessed February 24, 2019 .
  12. ↑ # 24 Hui Ka Yan. Bloomberg Billionaires Index. In: bloomberg.com. Bloomberg LP , February 24, 2019, accessed February 24, 2019 .
  13. ↑ Amy Or: Evergrande Gets $ 722 million. In: Wall Street Journal. October 30, 2009, accessed January 26, 2021 .
  14. ↑ Guangzhou Evergrande Taobao - Cup history. Accessed February 24, 2019 .
  15. ^ Dalian Wanda changes property strategy after IPO. In: Financial Times. January 15, 2015, accessed January 26, 2021 .
  16. ↑ Gerhard Mauerer: Electric Saab manufacturer: Evergrande takes over majority in NEVS. In: automobilwoche.de. January 16, 2019, accessed September 15, 2021 .
  17. ↑ Evergrande takes over Saab's successor NEVS completely. In: elektroauto-news.net. June 22, 2020, accessed on September 15, 2021 (Source: GlobalLegalChronicle - National Modern Energy's $ 379.5 Million Sale Of Its 17.6% Stake In NEVS // SaabBlog - NEVS to be fully acquired by Evergrande).
  18. ↑ mho: Evergrande crisis feeds fear of the domino effect in China. In: faz.net . September 8, 2021, accessed September 8, 2021 .
  19. ↑ a b Evergrande warns again of liquidity bottlenecks . Der Spiegel, September 14, 2021.
  20. ↑ China Evergrande is not 'too big to fail', says Global Times editor . Reuters , September 17, 2021.
  21. ↑ CHINA EVERGR.NEW EN.VEH.G , dtv. Retrieved September 17, 2021.
  22. ↑ Clare Jim: Evergrande troubles punish China property as contagion concern spreads. In: reuters.com. Thomson Reuters , September 20, 2021, accessed on September 20, 2021 (English, video clip with English subtitles of 1 min 18 sec).
  23. ↑ Steffen Richter: Fall of a Giant . Die Zeit , September 20, 2021.
  24. ↑ Evergrande crisis causes significant losses on Wall Street , Frankfurter Allgemeine Zeitung , September 21, 2021.