On December 4, a special meeting of real estate enterprises triggered widespread public attention, just like the night of the 2nd Evergrande Group to ensure the delivery of the building of the special meeting of the re-enactment.
After chairman Xu Jiayin about the rumors boiled, he personally attended the meeting on the evening of the 2nd, to "nothing out of the two steps" posture to respond to the rumors. And before that, Evergrande insiders have been rumors.
Standing on the threshold of 2022, what is the former "richest man in China" Xu Jiayin busy with? How will his future path unfold?
Starting with nothing and being unique
Unlike those rich kids born with a golden spoon, Hui's life has been full of challenges from the start.
Xu Jiayin was born in 1958 to a poor family in Taikang County, Zhoukou City, Henan Province. Taikang, a famous city in the Central Plains, was home to heroes like Wu Guang and poets like Xie Ling Yun. In this yellow land, Xu Jiayin's mother passed away shortly after his birth.
"How happy are you people who have been pampered by your mothers since childhood!" After a successful career, Xu Jiayin once expressed his envy to his subordinates at an Evergrande Group meeting.
Xu Jiayin's experience of being deprived of his mother's love from a young age is summarized as "independence" and "resilience". Instead of dropping out of school to work as a farmer, he insisted on pursuing his education.
He used to be a hard-working farmer, and even worked as a manure worker in the toughest moments. 1978, Xu Jiayin succeeded in the college entrance examination, and after graduation, he worked in a steel factory for ten years. With the spring wind of reform and opening up, he came to Shenzhen, and in 1992, he placed an order of 100,000 yuan for his company.
However, Hui Kayan was not satisfied with working for others all the time. 1996, he founded the Evergrande Group with the ambition of real estate.
At that time, most of the real estate developers in Guangzhou focused on large units. After market research, Xu Jiayin decided that Evergrande's first project "Infinity Garden" would focus on small units because he believed that Chinese people did not have so much money at that time, and large units were not conducive to the rapid return of capital.
As expected, "Infinity Garden" was a big hit once it was launched, and Evergrande thus gained a large amount of cash flow to continue development. Under Xu Jiayin's precise operation, Evergrande Group has rapidly risen to become the dark horse in China's real estate market.
In 1999, Evergrande became one of the top 10 real estate enterprises in Guangzhou; in 2004, it jumped to one of 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 up to HK$70.5 billion.
Blind Expansion, Shattered Dreams of Being the Richest
Evergrande's success has made Hui Kayan a regular on the rich list and the richest man in China on the Forbes and Hurun Rich List in 2017.
However, in 2022, Hui's wealth has shrunk to 172nd on the Hurun 100 list.
In addition to real estate, Xu Jiayin also invested heavily in the Guangzhou Evergrande soccer team, refreshing the Asian soccer circle.
In 2013, Guangzhou Evergrande won the AFC Champions League, becoming the first Chinese soccer club to stand on top of Asia in 23 years.
In 2020, Hui took a 500,000-square-meter plot of land in Guangzhou's Panyu for 6.8 billion yuan, with plans to invest 12 billion yuan in building a world-class soccer stadium that would surpass Barcelona's home stadium, Camp Nou.
However, in the second half of 2021, Hui's soccer dreams came to an abrupt end.
Perseverance in the face of adversity
Due to high leverage and high debt, Evergrande faces difficulties in fulfilling its guarantee obligations in 2021. The central bank pointed out that Evergrande's risks mainly stem from mismanagement and blind expansion.
The dynamics of Evergrande's asset disposal has always touched the nerves of the capital market.2021 In November, Evergrande sold the Evergrande headquarters in Shenzhen Bay at a price of 7.54 billion yuan; and in October, the Panyu land plot in Guangzhou that carries Xu Jiayin's soccer dream was captured by Guangzhou City Investment. Local governments are also accelerating the recovery of Evergrande's land.
The latest news shows that Evergrande Wealth announced that it will adjust the cash-out program released on December 31, 2021, adjusting the monthly cash-out of RMB 8,000 per person to RMB 2,000 per person per month.
Evergrande's self-help action is far more than these, the most important of which is "guarantee delivery". Since this year, Xu Jiayin's name in the Evergrande Group official website has only appeared three times, the theme is delivery and selling houses.
At the end of October, Hengchi 5 finally saw its official delivery with the first batch of 100 units. Although Hengda Auto had suffered delays in mass production and delivery, Xu Jiayin has high hopes for Hengchi Auto.
On the evening of December 2, in the much-anticipated work of guaranteeing the delivery of buildings on the topic of the meeting, Hui focused on summarizing the resumption of work and production to ensure the delivery of buildings this year to ensure the completion of the full year of guaranteeing the delivery of the task.
At the beginning of this year, Xu Jiayin said at the Evergrande mobilization meeting that Evergrande will pay for about 70 million square meters of buildings this year, about 600,000 sets. By the end of the year, he said, "From January to November this year, Evergrande Group realized 256,000 sets of buildings, and strive to complete 300,000 sets of deliveries for the whole year of 2022, and 44,000 sets of deliveries must be completed in quality and quantity in December." Compared with the beginning of the year, the target number of sets for the task of guaranteed delivery has been reduced by half.
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 Guangzhou. Xu Jiayin tries to get through the current difficulties with a pragmatic and inclusive temperament.
However, what does the future hold? It all remains to be revealed in time.
