After the Spring Festival, has Evergrande paid back the money?
Not really!
Moreover, the exposed Xu Jiayin said in an internal speech:
"Debt repayment can only be repaid after sales and business are resumed."
"You don't sell your assets at a low price, because it's hard to pay off your debts when your assets are sold out."
According to the latest issue of Evergrande Internal Journal, Evergrande held the 2022 Baojiaolou New Year Construction Mobilization Conference on the sixth day of the Chinese New Year (February 6), and Xu Jiayin also delivered a 5,000-word internal speech at the meeting, with a huge amount of information!
Come and see what Xu Jiayin said?
Xu Jiayin said that 2021 is a very extraordinary year for Evergrande Group.
That's not it. Cat Sister believes that for Evergrande's employees, suppliers, US dollar bond investors, banks, trusts and other financial creditors, as well as investors who bought Evergrande Financial Services Wealth Management, 2021 is destined to be unforgettable, because:
Their creditor, Evergrande, thundered.
So, in 2022, will things get better?
Xu Jiayin said that 2022 is a key year for Evergrande to get out of the predicament and move into the future.
Pictured: Say rich cat photo
For Evergrande, which is saddled with trillions of debts, how to "get out of the predicament and move into the future"?
Boss Xu gave the path - "This year we must fully start the construction of the baojiao building, and unswervingly complete the goal of the annual baojiao, which is the most important task and work this year." At the same time, we must also do everything possible to resume sales and business, actively promote cooperation in all aspects, and strive to resolve various risks. ”
Boss Xu focused on six aspects, picking the key points for everyone to make a deal out of.
First of all, the maintenance of the building is still the first priority.
Boss Xu said that it is necessary to do a good job in resuming work and resuming production and ensuring the delivery of buildings. This year's goal is to deliver about 70 million square meters and 600,000 sets, which is equivalent to nearly 50% of all Evergrande's guaranteed building projects to be delivered within the year.
The task is arduous and difficult. However, "Baojiaolou is a major social and people's livelihood involving tens of millions of owners, and the importance is self-evident, which is the social responsibility we should bear and must bear, and we must do our best to do this work at all costs." ”
In previous years, when Evergrande was operating normally, the inflow and outflow of funds was very large, such as 1.3 trillion yuan in 2019, 1.2 trillion yuan in 2020, and 500,000 to 600,000 households a year in the peak period.
But in June last year, the company began to be in trouble, and in September there was almost no capital inflow, which was difficult to achieve a large number of handovers.
In order to ensure the delivery of the building, Evergrande is also constantly reducing expenses. At the beginning of January this year, Evergrande was revealed to have withdrawn its lease to its headquarters in Shenzhen in order to save money.
Image source network, infringement deleted
In this internal speech, Xu Jiayin also revealed that before the Spring Festival, Evergrande had already finalized the headquarters of provincial companies in various regions, and the provincial company headquarters were reduced from 15,000 to more than 5,100 people.
Where have all these people gone?
Evergrande's official statement is that a large number of employees have been enriched to the front line of the project. However, whether it is on the front line or outside, perhaps only these employees themselves know.
At present, not only the skies over the Pearl River Delta are full of Evergrande's resumes, and it is estimated that the skies over the whole country are full.
The good news is that at present, more than 80% of Evergrande's long-term partners, including the main construction, material supply and decoration units, are continuing to cooperate with Evergrande; moreover, each province, municipality and district has set up a special class for Evergrande to guide and help Evergrande promote the resumption of work and production.
Evergrande is so fully committed to ensuring the delivery of the building, not only because this is a ZZ task, but also because, Boss Xu believes:
"Only when the construction is fully started and the normal construction of the project can we resume sales and resume operations." This is not a question of whether there are chickens or eggs first, it must be that we must first do a good job of full construction, and then we can resume business, in order to repay various debts, and to get out of the predicament. ”
If you want to guarantee the delivery of the building, first of all, the money must be in place.
So, how many other families does Evergrande have? Boss Xu told the truth at an internal meeting:
"At present, our pre-sale supervision funds of more than 50 billion yuan, basically can start the full resumption of work after the Spring Festival, of course, some of the projects are unbalanced, the continuity of construction after the resumption of work depends on our nearly 80 billion sales unpaid, nearly 90 billion yuan of saleable value in the building, this 170 billion is the financial basis for continuous delivery."
Well, in addition to the more than 50 billion pre-sale regulatory funds locked in the regulatory account that cannot be removed, it turns out that Evergrande also has nearly 80 billion unpaid sales, nearly 90 billion yuan of saleable value in the baojiao building, and close to 170 billion "expected funds".
However, for the current Evergrande, the difficulty is that the house can still be sold? Can the money still be returned?
This brings us to the second focus of Xu Jiayin's speech:
"Every effort will be made to resume sales and resume normal operations."
Boss Xu revealed that in addition to the scope of the baojiao building, Evergrande also has 56 million square meters of projects under construction that have not been collected and not opened, 160 million square meters of land reserves and 150 old renovation projects.
Guangzhou Panyu Xie Village Evergrande Guanjun light, said rich cat photo
The first two are hard home foundations, as for the 150 old reform projects, just listen to them first.
Originally, Evergrande still has so many family foundations, but how to start and turn this part of the assets, and resume development and construction and normal operation?
The path given by Boss Xu is: strive to open up an all-round, multi-level, multi-flowered and win-win road of cooperation.
Put simply, find someone to work with.
For the current Evergrande, finding someone to cooperate in the development of this part of the project is obviously the best choice. After all, Evergrande's brand, after all kinds of negative news fermentation in the past six months, has basically gone bankrupt.
Find someone to cooperate in development, the house can be sold, and part of the funds can be returned.
So, the ultimate question is, can the money owed to financial investors, suppliers, dollar debt investors, banks, trusts and other financial institutions be repaid first?
The answer is: no!
Boss Xu said that it is absolutely not allowed to sell the company's assets at a low price.
"We must bear in mind that project cooperation can not only repay debts, but also through the resumption of work and production, normal construction, resumption of sales, and resumption of operations before the debt can be finally paid off."
"Since June last year, I have always stressed that we should not sell the company's assets at any time, and we must pay attention to preventing loopholes in the process of asset disposal. You can't rely on selling assets at a low price to pay off debts, otherwise it will be difficult to pay off debts when assets are sold at a low price. ”
Selling assets at a low price cannot pay off debts, but waiting for Evergrande to "resume work and production, normal construction, resume sales, and finally pay off debts after resuming operations", can evergrande's many creditors really wait for this day?
I can only wish that all the owners who bought Evergrande houses can finally close the building smoothly.