Evergrande Group

Evergrande Group
恒大集团
Public
Traded as SEHK: 3333
Industry Real estate
Founded 1996
Founder Xu Jiayin (Hui Ka Yan)
Headquarters Shenzhen, Guangdong, China
Area served
 China
Key people
 Xu Jiayin (Chairman)
Subsidiaries Hengda Real Estate
Website www.evergrande.com
Evergrande Group
Simplified Chinese 恒大集团
Traditional Chinese 恆大集團

The Evergrande Group or the Evergrande Real Estate Group (previously Hengda Group) is China's second-largest property developer by sales.[1] It is based in southern China's Guangdong Province, and sells apartments mostly to upper and middle-income dwellers. As of 2018, it is the world's most valuable real estate company.[2]

The holding company of the group is incorporated in the Cayman Islands.[3]

In 2017, Evergrande experienced a surge in its stocks, share price, profits and revenue, rising almost three to four folds. The positive outlook and results of the company propelled Hui Ka Yan to one of China's richest men, as well as one of the wealthiest people in Asia.[4][5][6][7]

History

Formerly called the Hengda Group, Evergrande was founded by Xu Jiayin in the southern Chinese city of Guangzhou in 1996.

In October 2009 the company raised $722 million in an initial public offering on the Hong Kong Stock Exchange.[8]

The group bought football club Guangzhou Evergrande F.C. in 2010 and invested heavily, and under Marcello Lippi they won the 2013 AFC Champions League. The group has a mineral water brand Evergrande Spring (恒大冰泉)[9] and a football tutoring school.

In recent years Chinese property developers like Evergrande and Dalian Wanda have made forays into "alternative, income-generating businesses away from the property market". For example, Evergrande has expanded into solar panels, pig farming, agribusiness, and baby formula.[10]

Operations

The firm now has projects in over 170 cities in the country. It is one of the ten largest real estate developers in Mainland China, and one of the five largest real estate developers in Guangdong Province, the other four being Country Garden, Guangzhou R&F Properties, Hopson Development, and Agile Property.

It currently owns 45.8 million square metres of development land and real estate projects in 22 cities (Guangzhou, Tianjin, Shenyang, Wuhan, Kunming, Chengdu, Chongqing, Nanjing, Zhengzhou, Luoyang, Changsha, Nanning, Xian, Taiyuan, Guiyang, etc.) in Mainland China, which ranks second among the Mainland real estate developers, just after Country Garden.[11]

Alibaba CEO Jack Ma has a minority share of the company.

As of 2016, owner Xu Jiayin was the eighth richest Chinese man, worth $4.9 billion.[12]

The under-construction Ocean Flower Island, located in Hainan, is one of their major projects. Its Evergrande Plaza in Chengdu was designed by Aedas and completed in 2014. [13]

Evergrande Health, a listed subsidiary of Evergrande Group, is now the largest shareholder of Faraday future after acquiring a 45 percent stake in the automotive company for a total of $2 billion.[14]

Controversies

The Securities and Futures Commission of Hong Kong (SFC) suspended an American investor Andrew Left of Citron Research, who criticized the company, for "finding him culpable of disclosing false or misleading information inducing transactions under the Securities and Futures Ordinance (SFO) in the publication of a research report on Evergrande Real Estate Group Limited (Evergrande) in June 2012."[15] The SFC ban "has raised concerns over freedom of speech in Hong Kong’s financial markets."[16]

See also

References

  1. ↑ "Evergrande draws eight strategic investors for Shenzhen listing". South China Morning Post. 2 January 2017.
  2. ↑ "China's Evergrande tops world's most valuable real estate brand: report - Xinhua | English.news.cn". www.xinhuanet.com.
  3. ↑ . Fortune Evergrande Group http://fortune.com/global500/china-evergrande-group/title=China Evergrande Group Check |url= value (help). Missing or empty |title= (help)
  4. ↑ "Developer China Evergrande H1 core profit jumps over three-fold". The Business Times.
  5. ↑ "Evergrande profit surge brings share price gains to almost 400%". The Business Times.
  6. ↑ "A Look into China Evergrande Group (3333.HK)'s Recent Activity – JCTY News". jctynews.com.
  7. ↑ "China Evergrande Group (3333.HK) Shares Move 18.63% – Concord Register". www.concordregister.com.
  8. ↑ Or, Amy (October 30, 2009). "Evergrande Gets $722 Million". Wall Street Journal.
  9. ↑ 恒大冰泉概览 Archived 2014-07-01 at the Wayback Machine.
  10. ↑ Josh Noble; Gabriel Wildau (January 15, 2015). "Dalian Wanda changes property strategy after IPO". Financial Times.
  11. ↑ "Evergrande launches IPO with generous terms", Finance Asia
  12. ↑ , Zeenews
  13. ↑ Evergrande Plaza, a Hong Kong-style shopping mall, opens in Chengdu. Retrieved 15 December 2015.
  14. ↑ "Faraday Future reveals the source of its $2 billion investment as a co-founder steps away". The Verge. Retrieved 2018-06-26.
  15. ↑ "Market Misconduct Tribunal bans Andrew Left of Citron Research from trading securities in Hong Kong" (Press release). Hong Kong: The Securities and Futures Commission. 20 October 2016. Retrieved 31 July 2018.
  16. ↑ Gough, Neil (2016-10-20). "Hong Kong Tribunal Suspends Investor Who Criticized Chinese Firm". The New York Times. ISSN 0362-4331. Retrieved 2016-10-21.
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