[Epoch Times January 02, 2022](Epoch Times reporter Li Jing comprehensive report) Recently, an administrative penalty decision in Danzhou City, Hainan Province has been circulating on the Internet. The decision stated that a total of 39 residential buildings on Haihua Island under the Evergrande Group were determined to be illegal and required to be demolished within a time limit. The Henghai Flower Island complex is known as the world‘s largest flower-shaped artificial tourist island, and was selected as the top ten ugly buildings in China in 2021.
The administrative penalty decision stated that Danzhou Xinheng Tourism Development Co., Ltd. is located in Haihua Island 2, Haihua Island, Baimajing Town, Danzhou City. There are 39 buildings and a total construction area of 434,941.46 square meters. The planning permit obtained illegally has been revoked, and the company is now ordered to dismantle it by itself within 10 days.
The document stated that if the demolition is not overdue, the Law Enforcement Bureau will organize the demolition in accordance with the law.
The date of inscription of the document is December 30, 2021, and the inscriber is Danzhou Comprehensive Administrative Law Enforcement Bureau. On January 1, the Danzhou City Urban Management Bureau confirmed the news to JiMu News.
Public information shows that Haihua Island in Danzhou City, Hainan Province is known as the world‘s largest flower-shaped artificial tourist island. The project was built by Evergrande Group for 12 years and cost 160 billion yuan. On New Year’s Day 2021, Haihua Island has started trial operation.
Haihua Island is composed of No. 1, No. 2 and No. 3 islands. The buildings required to be demolished within the time limit in the penalty decision are all located on Island 2, which is a residential functional area.
According to information from Tianyan, Danzhou Xinheng Tourism Development Co., Ltd., the development company for the demolition project within a limited time, was established on August 19, 2015, and was formerly known as Danzhou Xinheng Real Estate Development Co., Ltd. The company was involved in 446 judicial cases, of which more than 70% were commercial housing contract disputes.
The CCP’s ecological and environmental protection inspection team reported to Hainan Province in May 2020 that the construction of Haihua Island would damage the ecological environment and other issues.
Just last month, the Hengdahaihuadao complex was selected as the top ten ugly buildings in China in 2021.
The selection activity is organized by the information portal “Architecture Changyan.com” of the Chinese construction industry, and selects China‘s top ten ugly buildings once a year.
The reason why the Hengdahaihuadao architectural complex is on the list is that capital will behave arbitrarily, destroy the marine ecology, and have a weird and messy shape, which is a typical example of a show of wealth and kitsch cultural tourism project.
As one of the largest real estate developers in China, Evergrande Group has actively expanded by borrowing large amounts from banks, domestic and international bond investors, suppliers and individual investors, and used most of the funds in areas other than the purchase of residential real estate Land and assets.
After the Chinese authorities restricted developers’ borrowing and the sales of Evergrande’s real estate plummeted, the company fell into debt distress, with a huge debt of US$300 billion.
In December 2021, Evergrande Group failed to pay US$82.5 million in interest on two US dollar bonds, and was subsequently rated as “Restricted Default” by Fitch on December 9.
This is the first time Evergrande has been included in the level of defaulters, which means that Evergrande has officially defaulted, but has not yet entered any type of bankruptcy application, liquidation or other procedures that would stop its operations.
On December 17, the credit rating agency S&P Global officially announced that China Evergrande Group had defaulted.
Editor in charge: Sun Yun#