Dec. 4 (CNA) - It's been a long time since so many people have paid as much attention to a special meeting of real estate companies as they did on the night of the 2nd.
Evergrande Group Chairman Xu Jiayin's rumors boiled half a day after the night of the 2nd Evergrande Group to ensure the delivery of the building of the work of the special meeting, Xu Jiayin appeared to be "nothing to come out to walk a couple of steps" to respond to the rumors of the way. In fact, before the meeting, many Evergrande insiders have denied the rumor.
What is Xu Jiayin up to in the upcoming year 2022? What's the way forward for the former richest man in China?
At 7:00 p.m. on December 2, Evergrande Group held a special meeting on the work of guaranteeing the delivery of buildings. Source:Evergrande Group official website
Started with nothing, no one can do anything about it.
Unlike the sons who were born with a golden spoon, Hui's life has been in "difficult mode" from the very beginning.
Xu Jiayin was born into a poor family in Taikang County, Zhoukou City, Henan Province in 1958. Taikang has been a famous city in the Central Plains since ancient times. The reckless hero Wu Guang and the landscape poet Xie Ling Yun both came from here. On the same yellow land, shortly after Xu Jiayin was born, his mother died of illness.
"How happy are you people who grew up with a mother watching over you!" After becoming famous, Xu Jiayin would also say to his subordinates in Evergrande meetings full of envy.
What did the lack of mother's love bring to him since he was a child? Xu Jiayin summarized it as "independence" and "stubbornness". Unlike other children, he did not drop out of school to work as a farmer, but insisted on studying.
He was also a hard-working farmer, and even worked as a dung man when he was at his poorest.In 1978, Xu succeeded in the college entrance examination, and after graduation, he spent ten years in a steel factory. Later, taking advantage of the east wind of reform and opening up, he came to Shenzhen to work as a salesman, and in 1992 he placed a 100,000 yuan order for his company.
Of course, the stubborn Hui Kayan wouldn't want to work for someone forever. in 1996, Hui founded the Evergrande Group, aiming for real estate.
At that time, in Guangzhou, most real estate developers still focused on large homes. Occasionally, they would build a few small houses in the corners to fully utilize the area. After market research, Xu Jiayin decided to develop Evergrande's first project, "Jinbi Garden", focusing on small houses. In his opinion, at that time, Chinese people did not have so much money in their hands, and people who only built large houses would probably not have the money to buy them, which would not be conducive to the rapid return of capital.
As he had hoped, Evergrande sold out quickly after the development of "Infinity Gardens" was completed, so Evergrande has a large amount of cash flow to continue development. With a series of precise operations by Xu Jiayin, Evergrande has become a dark horse in the Chinese market.
In 1999, Hui Ka Yan pushed Evergrande to the top 10 real estate enterprises in Guangzhou; in 2004, Evergrande jumped to the top 10 real estate enterprises in China; in 2009, Evergrande was successfully listed on the Hong Kong Stock Exchange, with a total market value of HK$70.5 billion.
Photo: Hui Ka Yan.
Blind Expansion, Richest Man's Dream Wakes Up
Evergrande's success has made Hui Kayan shine. Since 2010, Hui has become a regular on the rich list and was awarded China's richest man on the 2017 Forbes Rich List and Hurun Rich List.
Xu Jiayin drops to 172nd on the 2022 Hurun 100 Rich List (China) with a fortune of 30 billion yuan.
Evergrande's "gold dollar soccer" is the most colorful of Xu Kayan's real estate. 2010, Xu Kayan smashed a giant Guangzhou Evergrande soccer team, with thick banknotes to refresh the Asian soccer circle.
On November 9, 2013, cheered by nearly 50,000 fans, Guangzhou Evergrande won the AFC Champions League title with a 1-1 draw at home against South Korea's Seoul FC by virtue of the number of goals scored on the road, becoming the first Chinese soccer club to stand at the top of Asia in 23 years.
In 2020, Hui took a 500,000-square-meter plot of land in Xiecun, Panyu, Guangzhou, for 6.8 billion yuan, and is set to spend another 12 billion yuan to build a world-class professional soccer stadium that will surpass Barcelona's home stadium, Camp Nou.
Assuming all goes well, the 100,000-capacity soccer stadium is expected to be completed by the end of 2022 and will be another highlight of Hui's career.
But like the most commonly heard phrase in soccer circles, "Soccer is round, you don't know what will happen at the last minute." Xu Jiayin and his soccer stops in the second half of 2021.
On April 16, 2020, Evergrande released the Guangzhou Evergrande Football Stadium 16 release. Figure source: Evergrande Group
Under difficult circumstances, all efforts are made to ensure the delivery of the building
Due to the high leverage and high debt of real estate companies, Evergrande disclosed in 2021 that it might not be able to fulfill its guarantee obligations. The central bank has commented that Evergrande Group's risks are mainly due to mismanagement and blind expansion.
Evergrande's asset disposal dynamics have been affecting the sensitive nerves of the capital market. in November, Evergrande sold the glittering Evergrande headquarters in Shenzhen Bay at a price of 7.54 billion yuan; in October, the Guangzhou Panyu land parcel that carries Xu Jiayin's soccer dream was won by Guangzhou City Investment. Local governments are also speeding up the recovery of Evergrande's land. According to incomplete statistics, Evergrande has owned more than 12,000 mu of land since 2021, when it fell into financial difficulties, equivalent to 8 million square meters of land recovered by the government for free.
The latest news is that on the afternoon of November 30, Evergrande Wealth announced that it would adjust the cash-out program released on December 31, 2021, and adjusted the current monthly cash-out of 8,000 yuan per person to 2,000 yuan per person per month.
Evergrande's self-help action is far more than these, the most important of which is naturally "to ensure the delivery of buildings". Counting the emergence after this storm.
So far this year, Xu Jiayin's name has only appeared three times on Evergrande Group's official website, and the theme is delivery and selling houses.
Even at the end of October, the Hengchi 5, which has invested 47.4 billion yuan and has been in the making for more than 2 years, finally saw its official delivery, with the first batch of 100 units. The repeated delays in mass production and delivery time of Hengchi Automobile finally gave the market a preliminary explanation. However, on such an important occasion, Xu Jiayin, who has high hopes for Hengchi Automobile, was not present.
On the evening of December 2, in the much-anticipated special meeting on the work of guaranteeing the delivery of buildings, Hui focused on summarizing this year's resumption of work and production to ensure the delivery of buildings.
Ensure the completion of the year's guaranteed delivery of buildings.
Earlier this year, Hui said at the Evergrande mobilization meeting that Evergrande would pay for about 70 million square meters of construction this year, the
About 600,000 sets. By the end of the year, Xu appeared and said, "From January to November this year, Evergrande Group realized 256,000 units of properties, and for the whole year 2022
Striving to complete 300,000 sets of deliveries, 44,000 sets of deliveries must be completed in quality and quantity in December." Compared to the beginning of the year, the target number of units for the delivery-preserving task has been halved.
Also at the beginning of the year, Evergrande's headquarters moved out of Shenzhen's Nanshan District, where it had worked for nearly five years, and returned to the embrace of Guangzhou. Some have commented that it is this air of pragmatism and inclusiveness that has made Guangzhou a business capital that has lasted for thousands of years. Now, Xu Jiayin is back in Guangzhou, trying to return to pragmatism and practicality to weather the storm.
But the future remains to be seen, what awaits Hui? Everything needs time to test.
