Evergrande Group

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Evergrande Group
恒大集团
TypePublic
SEHK: 3333
IndustryReal estate
Founded1996
FounderXu Jiayin (Hui Ka Yan)
Headquarters
Shenzhen, Guangdong
,
China
Area served
China
Key people
Xu Jiayin (Chairman)
RevenueIncrease CN¥507.250 billion[1]
(US$79.176 billion, 2020)
Decrease CN¥63.520 billion[1]
(US$9.914 billion, 2020)
Decrease CN¥8.076 billion[1]
(US$1.260 billion, 2020)
Total assetsIncrease CN¥2,301 trillion[1]
(US$147.294 billion, 2020)
Total equityDecrease CN¥350.431 billion[1]
(US$54.69 billion, 2020)
Number of employees
123,276[2] (31 December 2020)
SubsidiariesHengda Real Estate
Websitewww.evergrande.com
Evergrande Group
Simplified Chinese恒大集团
Traditional Chinese恆大集團

The Evergrande Group or the Evergrande Real Estate Group (previously Hengda Group) is China's second-largest property developer by sales,[3] making it the 122nd largest group in the world by revenue, according to the 2021 Fortune Global 500 List.[4] It is based in southern China's Guangdong Province, and sells apartments mostly to upper and middle-income dwellers.[5] In 2018, it became the world's most valuable real estate company.[6]

The holding company of the group is incorporated in the Cayman Islands.[4] Its headquarters are in the Excellent Houhai Financial Center in Nanshan District, Shenzhen.[7]

In August 2021, the Financial Times reported that Evergrande Group is facing a record number of cases filed by contractors in Chinese courts as pressure mounts on the company's management to reduce its $300bn in liabilities, including around $100bn in debts.[8][9][10]

In mid-September 2021 it was reported that the company was in danger of being unable to issue payments on loan interest due on 20 September.[11][12] It was estimated that around 1,500,000 customers could lose deposits on Evergrande homes that have yet to be built if the company goes under.[13]

History[]

Formerly called the Hengda Group, Evergrande was founded by Xu Jiayin in the southern Chinese city of Guangzhou in 1996.[citation needed]

In October 2009 the company raised $722 million in an initial public offering on the Hong Kong Stock Exchange.[14]

The group bought football club Guangzhou Evergrande F.C. in 2010 and invested heavily, and under Marcello Lippi they won the 2013 AFC Champions League. The group has a mineral water brand Evergrande Spring (恒大冰泉)[15] and a football tutoring school.

In recent years Chinese property developers like Evergrande and Dalian Wanda have made forays into "alternative, income-generating businesses away from the property market". For example, Evergrande has expanded into solar panels, pig farming, agribusiness, and baby formula.[16]

In 2017, Evergrande stocks, share price, profits and revenue, surged to almost three to four times in value, propelling founder Xu Jiayin to one of China's richest men, as well as one of the wealthiest people in Asia.[17][18][19][20]

In 2020, Evergrande generated a revenue of around 507 billion yuan.[21]

Operations[]

The firm has developed projects in over 170 cities in China. It is one of the 10 largest real estate developers in Mainland China, and one of the five largest real estate developers in Guangdong Province—the other four being Country Garden, Guangzhou R&F Properties, Hopson Development, and Agile Property.

Evergrande Group currently owns 45.8 million square metres of development land and real estate projects in 22 cities, including Guangzhou, Tianjin, Shenyang, Wuhan, Kunming, Chengdu, Chongqing, Nanjing, Zhengzhou, Luoyang, Changsha, Nanning, Xian, Taiyuan, and Guiyang. in Mainland China, which ranks second among the Mainland real estate developers, just after Country Garden.[22]

Alibaba CEO Jack Ma has a minority share of the company.[citation needed] Alibaba also has a 50% stake in the football club.[23]

In 2016, founder and chairman Xu Jiayin was the eighth-richest person in China, worth $4.9 billion.[24][permanent dead link] As of June 2019, his net worth was reported as US$30.4 billion, making him the third-richest person in China.[25]

The under-construction Ocean Flower Island, located in Hainan, is one of its major projects. Evergrande Plaza, in Chengdu, was designed by Aedas, and completed in 2014.[26]

Evergrande Health, a listed subsidiary of Evergrande Group, is now the largest shareholder of Faraday Future, after having acquired a 45 percent stake in the automotive company, for a total of $2 billion.[27]

Citron Research report[]

In 2016, the Hong Kong Market Misconduct Tribunal (chaired by Mr Justice Hartmann) suspended American short seller and Citron Research founder Andrew Left for five years, due to the publication of a highly critical report on the company, "finding him culpable of disclosing false or misleading information inducing transactions under the Securities and Futures Ordinance (SFO) in the publication of a research report on Evergrande Real Estate Group Limited (Evergrande) in June 2012."[28][29][30] The trading ban "has raised concerns over freedom of speech in Hong Kong’s financial markets."[31]

Subsidiaries[]

Real estate[]

Evergrande Real Estate is at the forefront of the Chinese real estate market and is known as "Wan Heng Bi" with the other two top three real estate companies, Vanke and Country Garden.

Sports[]

In March 2010, Evergrande bought all shares of Guangzhou F.C. for 100 million yuan. On April 16, 2020 Evergrande opened the construction of Guangzhou Evergrande Football Stadium in Xie Village, Panyu District, Guangzhou.[32]

Automotive[]

Evergrande Group announced in November 2019 that it will invest 45 billion yuan over the next three years to develop new energy vehicles, build three production bases in Nansha, Guangzhou and Shanghai, and launch the first batch of electric vehicles in the name of "Evergrande New Energy Vehicle "in 2020.[33]Hengchi series concept was incorporated into Guanghui Group, the world's largest auto dealer, to establish a sales network; a "State Grid Evergrande" joint venture company was formed with State Grid to provide intelligent parking services in condominium parking lots. In June 2020, Evergrande Group acquired the remaining 49% of NEVS for $380 million, after having acquired 51% of the shares for $931 million in 2019.[34]

Tourism and entertainment[]

Hengda group tour operators are two major theme park brands "Hengda children of the world", "Hengda water world", and Hainan has a large tourist complex "Chinese island of Hainan to spend".[35][36][37]

Health[]

"Evergrande Health Group" primarily operates "Evergrande Health Valley" in the retirement apartment community and works with Brigham and Women's Hospital in Massachusetts to manage Hainan's "Boao Evergrande International Hospital".[38] In 2015, Evergrande Health Industry was formed by the holding Evergrande Real Estate Group Co., Ltd. (the predecessor of the China Evergrande Group) and the Wonchen Medical Beauty Group of South Korea, forming the "Hengda Wonchen Medical Beauty Hospital".[39]

Media[]

Heng Teng Network in 2015 by Evergrande Real Estate Group Co., Ltd (predecessor of China Hengda Group) and Tencent, in Guangzhou, set up (head office) a joint company in Shenzhen "Karen Teng Network Limited ". On October 26, 2020, Hengteng Network announced that it would acquire 100% of Ruyi Pictures by issuing new shares at a total transaction price of approximately HK $7.2 billion.[40]

Finance[]

Evergrande Group acquired a 50% stake in Sino-Singapore Great Eastern Life Insurance Company in 2015 and changed its name to Evergrande Life. In addition, Evergrande Group is the largest shareholder of Shengjing Bank, holding 17.28% of the shares.

Food[]

Evergrande Group has been involved in the grain and oil, dairy and mineral water businesses. Evergrande Group launched "Hengda Bingquan" mineral water in early 2014 and invited numerous artists including Jackie Chan to advertise with 6 billion yuan in advertising fees. After a huge loss of 4 billion yuan and left the market in 2016.

Music[]

Hengda Group in December 2010 money into the creation of Hengda music, invited Song Kenan, chairman, Gao Xiaosong served as music director, invited Jin Zhipeng, the great Zhang became his signature artists, touring the creation of the "Hengda Star Music Festival" brand, retired from business in 2015, "Hengda Music" was renamed "Xinao Music".

Financial data[]

Financial data in CNY[41][42]
Year Revenue Net Income Assets Equity
2010[43] 45,801,401,000 8,024,676,000 104,452,464,000 21,366,225,000
2011[44] 61,918,185,000 11,726,593,000 179,023,408,000 34,130,753,000
2012[45] 65,260,838,000 9,181,921,000 238,990,551,000 41,691,325,000
2013[46] 93,671,780,000 12,611,778,000 159,950,689,000 79,342,634,000
2014[47] 111,398,112,000 12,604,053,000 206,225,229,000 112,378,004,000
2015[48] 133,130,000,000 10,460,000,000 757,035,000,000 142,142,000,000
2016[49] 211,444,000,000 5,091,000,000 1,350,868,000,000 192,532,000,000
2017[50] 311,022,000,000 24,372,000,000 1,761,752,000,000 242,208,000,000
2018[51] 466,196,000,000 37,390,000,000 1,880,028,000,000 308,626,000,000
2019[52] 477,561,000,000 17,280,000,000 2,206,577,000,000 358,537,000,000
2020[53] 507,248,000,000 8,076,000,000 2,301,159,000,000 350,431,000,000

See also[]

References[]

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  4. ^ Jump up to: a b "China Evergrande Group Fortune Global 500". Fortune. 2 August 2021. Retrieved 18 September 2021.
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  6. ^ "China's Evergrande tops world's most valuable real estate brand". Xinhua English news. 5 September 2018.
  7. ^ "Contact". Evergrande Group. Retrieved 2021-02-04. 35 / f, excellent houhai financial center, no. 1126 Hyde [sic] road, nanshan district, shenzhen - Chinese address: "深圳市南山区海德三道1126号" (based on the Chinese address it is Haide Third Road)
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  15. ^ "恒大冰泉概览". Archived from the original on July 1, 2014.
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  52. ^ "2019 Annual Report" (PDF). doc.irasia.com.
  53. ^ "2020 Annual Report" (PDF). doc.irasia.com.

External links[]

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