Home Business Under the Evergrande crisis, Vanke internally issued a document to save food and clothing | Yu Liang | Wang Shi | Shenzhen Metro

Under the Evergrande crisis, Vanke internally issued a document to save food and clothing | Yu Liang | Wang Shi | Shenzhen Metro

by admin

[Epoch Times November 18, 2021](Epoch Times reporter Li Jing comprehensive report) At a time when the debt crisis of Evergrande Group is attracting global attention, Vanke Group, a large real estate company controlled by the Chinese Communist Party’s state-owned enterprises, recently issued a report. A document with the theme “About Vanke Group Headquarters’ Initiative to Reduce Food and Clothing and Create a “Wartime Atmosphere”” has again attracted attention from all walks of life.

Lu Media 21 Economic Net reported that the core idea of ​​this “Proposal” is to improve management and reduce unnecessary expenses. These include “subtracting actions and expenses that do not produce value”, “spending small money to do big things” and so on. This initiative also clearly requires Vanke’s management to lead by example, be diligent and thrifty, and eliminate waste, and even mention details such as “people turn off the lights”.

An insider of the Vanke Group confirmed to China Business News that this proposal document is true. At the “2021 Business Exchange Meeting” held not long ago, Vanke Group Chairman Yu Liang has repeatedly mentioned the need to “cherish money” and “make small money” in an effort to survive the “trouble period” of China’s real estate industry.

Vanke Group also issued an announcement a few days ago that the board of directors has resolved to apply for authorization to the general meeting of shareholders, intending to issue direct debt financing instruments within a range of no more than 30 billion yuan (RMB, the same below). “Need” and “adjustment of debt structure”.

See also  Generali breaks the ice on the allowance for smart workers: 300 euros per year

In 2018, the theme of Vanke’s autumn regular meeting was “Live”.

Vanke Group, headquartered in Shenzhen, is one of the largest real estate developers in China. Vanke’s announcement shows that in October 2021, Vanke’s contracted sales amount was approximately 41.95 billion yuan, a year-on-year decrease of 19.81%; the contracted sales area was approximately 2.581 million square meters, a year-on-year decrease of 29.48%. In the first three quarters of this year, the net profit of Vanke shareholders was 16.69 billion yuan, a year-on-year decrease of 16%.

In the second half of this year, China’s property market generally experienced a significant cooling. According to the national real estate development investment and sales data released by the Statistics Bureau of the Communist Party of China from January to October this year, the sales area in October was 127 million square meters, a year-on-year decrease of 21.7%; the development investment amount was 1.24 trillion yuan, a year-on-year decrease of 5.4%; the newly started area was 1.38 Yiping, a year-on-year decrease of 33.1%.

At present, the most eye-catching is the debt crisis of China’s large real estate company Evergrande Group. Real estate developers controlled by state-owned enterprises, including Vanke, have been required to purchase most of Heng’s assets.

According to the semi-annual report released by Evergrande, as of June 31, Evergrande owed a total of 1.97 trillion yuan (about 300 billion US dollars) to suppliers, creditors and investors. On November 16, “China Business News” cited sources familiar with the matter that since July 1, in order to maintain the liquidity of the group, Evergrande Chairman Xu Jiayin has raised funds through the sale of personal assets or pledged equity. Inject more than 7 billion yuan in cash into the group.

See also  Evergrande’s 240 billion debts confirmed that it faces a heavy price for defaulting investors | China Evergrande | Xu Jiayin

China Evergrande’s attempt to cash out part of its business seems to be frustrated. The company said last month that it had cancelled its equity transfer agreement with Hopson. Chinese developer Yuexiu Real Estate has withdrawn from a US$1.7 billion acquisition of the Hong Kong headquarters of China Evergrande Group.

At the same time, Evergrande’s sales have also stalled. Crane released the top 100 sales of Chinese real estate companies from January to October in November. More than 80% of the companies’ monthly performance fell year-on-year, with Evergrande leading the decline, with a decline of 90%.

The Wall Street Journal quoted people familiar with the news on November 10 that the CCP government is gradually dismantling Evergrande behind the scenes, which may take several years, and many details are still being worked out. This is one of the biggest financial challenges Beijing has faced over the years.

Editor in charge: Li Qiong#

.

0 comment
0

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy