news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

evergrande real estate has a mountain of litigation disputes.

on september 3, tianyancha information showed that evergrande real estate group co., ltd. had added 9 new information on persons subject to execution, with the execution target exceeding 930 million yuan, involving financial loan contract disputes, sales contract disputes and other cases. the executing courts included the people's court of liwan district, guangzhou city, guangdong province, the people's court of gaoyao district, zhaoqing city and other courts.

tianyan risk information also shows that evergrande real estate group co., ltd. currently has more than 700 pieces of information on persons subject to enforcement, with a total amount of enforcement exceeding 77.6 billion yuan. in addition, the company also has multiple consumption restriction orders, dishonest persons subject to enforcement, and finalized cases.

evergrande, the parent company of evergrande real estate group, was ordered to be liquidated and suspended on january 29 this year. previously, china evergrande said in an update in august that the liquidator has not yet found a restructuring plan that can enable the company to meet the resumption of trading guidelines and resume share trading.

evergrande real estate faces new lawsuit

on september 3, tianyancha legal litigation information showed that evergrande real estate group co., ltd. added 9 new information on persons subject to execution on september 2, with the execution target of more than 930 million yuan, involving financial loan contract disputes, sales contract disputes and other cases. the persons subject to execution also included zhuhai hengqin zhongzhu weixin industrial co., ltd., evergrande real estate group hainan co., ltd., etc., and the executing courts included the guangzhou liwan district people's court, zhaoqing gaoyao district people's court and other courts.

according to tianyan risk information, evergrande real estate group co., ltd. currently has more than 700 pieces of information on persons subject to enforcement, with a total amount of enforcement exceeding 77.6 billion yuan. in addition, the company also has multiple consumption restriction orders, dishonest persons subject to enforcement (deadbeats) and finalized cases.

china securities journal reporters noticed that evergrande real estate group had previously disclosed relevant litigation information on the juchao information network, but has not yet updated the latest litigation dispute information.

currently available information shows that in terms of major litigation, as of the end of february 2024, evergrande real estate had a total of 2,147 pending litigation cases with a subject amount of more than 30 million yuan, and the total subject amount accumulated was approximately 523.791 billion yuan.

in terms of failure to repay matured debts, as of the end of february 2024, evergrande real estate had a total of approximately rmb 320.305 billion in matured debts that it had not repaid; in addition, as of the end of february 2024, the issuer's overdue commercial bills totaled approximately rmb 204.125 billion.

china evergrande's resumption of trading makes no progress

as for evergrande real estate's parent company, china evergrande, the situation is not optimistic either.

on january 29 this year, the court ordered china evergrande to be liquidated and a liquidator was appointed. as a result, china evergrande’s hong kong stock market was also suspended.

on august 9 this year, the quarterly update announcement and latest progress released by the liquidator of china evergrande showed that since the appointment of the liquidator and the suspension of trading, the liquidator has focused on investigating the business and affairs of china evergrande, and taken measures to realize assets and seek to return value to creditors and investors.

on august 5 this year, china evergrande also announced that the liquidator, in the name of the company, initiated legal proceedings against three defendants, xu jiayin, xia haijun and former cfo pan darong, in the high court of hong kong, china. later, as the lawsuit progressed, xu jiayin's spouse or former spouse ding yumei and three entities related to xu jiayin and ding yumei were also added to the list of defendants.

in the lawsuit, the liquidators seek to recover from the seven defendants a total of approximately us$6 billion (approximately rmb 42.7 billion) in dividends and remuneration paid by the company based on financial statements that they claimed were misstated for the fiscal years ending 2017 to 2020.

however, china evergrande stated that the lawsuit is ongoing and the liquidator will make further announcements based on the status of the lawsuit.

at the same time, china evergrande said that although the liquidators have recovered a small amount of value from the company's assets, the company's liquidity and other internal resources are still limited. taking into account china evergrande's debt level and the challenges facing its business and operations, in the absence of significant new investment, the liquidators have not yet found a restructuring plan that can enable the company to meet the resumption guidelines and resume trading of shares.

evergrande auto, a sister company of evergrande real estate, has seen its losses worsen this year. according to evergrande auto's financial report, it achieved revenue of 38.38 million yuan in the first half of this year, a decrease of 75.17% compared with 154 million yuan in the same period last year. the decrease in revenue was mainly due to the decrease in sales of hengchi 5.

in the first half of the year, evergrande auto suffered a net loss of 20.256 billion yuan, an increase of 13.38 billion yuan from 6.873 billion yuan in the same period last year. it is worth mentioning that evergrande auto's losses in the first half of the year far exceeded its full-year losses in 2023, which were 11.995 billion yuan.

regarding the widening losses, evergrande auto said in its performance warning: "in view of the fact that china evergrande group was ordered to be liquidated by the high court of hong kong, china on january 29 this year, out of prudence, the company increased the impairment provision for accounts receivable of china evergrande group's subsidiaries and joint ventures. the full provision for the first half of 2024 is approximately 16.737 billion yuan."

as of june 30, 2024, evergrande auto had total assets of 16.369 billion yuan, total liabilities of 74.35 billion yuan, and cash and cash equivalents of only 39 million yuan.

the announcement shows that as of june 30, 2024, evergrande auto has cumulatively delivered more than 1,429 new energy vehicles.