[Epoch Times November 24, 2021](Epoch Times reporter Liu Yi reported) On November 24, the Hong Kong Chinese Real Estate Group announced that it would sell 751 million shares of China Evergrande, and the company’s loss is expected to exceed 10 billion. Hong Kong dollar. Liu Luanxiong, the owner of “Chinese Real Estate”, is a well-known Hong Kong businessman and a good friend of Xu Jiayin for many years.
Huaren Property stated in its announcement on the 24th that the relevant shareholders have given written approval to the directors to sell 751 million shares of China Evergrande. The sale authorization will be from September 23, 2021 to September 22, 2022. Valid during the month.
The announcement shows that the cost of Chinese Real Estate’s purchase of 860 million shares of China Evergrande from 2017 to 2018 is approximately HK$13.596 billion. Now it is expected that only HK$2.26 billion will be cashed out after the liquidation, with a loss of more than HK$11 billion.
As early as August this year, Chinese Land has already begun to sell equity in China Evergrande. According to its announcement on September 23, the company sold about 108.9 million shares of Evergrande during the period from August 30, 2021 to September 21, 2021, for a total cash of 246.5 million Hong Kong dollars, and the average price per share was approximately At 2.26 Hong Kong dollars, this price has shrunk by 85% from the original average purchase price of 15.8 Hong Kong dollars per share.
The announcement stated that Chinese Land purchased a total of 860 million shares of Evergrande between 2017 and 2018 and held the shares until June 30, 2021; the total purchase cost was nearly HK$13.6 billion, with an average of HK$15.8 per share.
Hong Kong wealthy businessman Liu Luanxiong and Chen Kaiyun are important shareholders of China Evergrande, and Chen Kaiyun is the executive director of Chinese Real Estate. They have made a lot of profits after purchasing the shares of Evergrande.
According to news from the “Daily Business News” on the 24th, in December 2019, China Evergrande announced that it would distribute a dividend of RMB 1.419 per share for the fiscal year ended December 31, 2018. According to the total equity of China Evergrande, the total dividend of China Evergrande this time reached approximately RMB 18.7 billion. Liu Luanxiong and Chen Kaiyun and his wife hold 9% of the shares of China Evergrande. Therefore, Liu Luanxiong and Chen Kaiyun and his wife received approximately 1.7 billion yuan in the 18.7 billion yuan dividend of China Evergrande that year.
In addition, judging from Liu Luanxiong and his wife’s purchase of China Evergrande stock in 2017, combined with the stock price trend in the following years, the book profit was as high as nearly 10 billion Hong Kong dollars.
As of the close of November 24, the stock price of Chinese Land was reported at HK$3.76 per share, with the latest market value of HK$7.173 billion; China Evergrande’s share price was reported at HK$2.78 per share, with the latest market value of HK$36.836 billion.
Editor in charge: Fang Xiao#