Evergrande Group

The Evergrande Group or the Evergrande Real Estate Group (previously Hengda Group) is China's second-largest property developer by sales.[2] 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.[3]

Evergrande Group
恒大集团
Public
Traded asSEHK: 3333
ISINKYG2119W1069 
IndustryReal estate
Founded1996
FounderXu Jiayin (Hui Ka Yan)
Headquarters
Shenzhen, Guangdong
,
China
Area served
China
Key people
Xu Jiayin (Chairman)
Revenue466,196,000,000 renminbi[1] (2018) 
SubsidiariesHengda Real Estate
Websitewww.evergrande.com
Evergrande Group
Simplified Chinese恒大集团
Traditional Chinese恆大集團

The holding company of the group is incorporated in the Cayman Islands.[4]

In 2017, Evergrande stocks, share price, profits and revenue, surged to almost three to four times in value, propelling founder Xu Jiayin to one of China's richest men, as well as one of the wealthiest people in Asia.[5][6][7][8]

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.[9]

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)[10] 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.[11]

Operations

The firm has developed projects in over 170 cities in China. It is one of the 10 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.

Evergrande Group currently owns 45.8 million square metres of development land and real estate projects in 22 cities, including Guangzhou, Tianjin, Shenyang, Wuhan, Kunming, Chengdu, Chongqing, Nanjing, Zhengzhou, Luoyang, Changsha, Nanning, Xian, Taiyuan, and Guiyang. in Mainland China, which ranks second among the Mainland real estate developers, just after Country Garden.[12]

Alibaba CEO Jack Ma has a minority share of the company. Alibaba also has a 50% stake in the football club.[13]

As of 2016, founder and chairman Xu Jiayin was the eighth-richest person in Chinese, worth $4.9 billion.[14] As of June 2019, his net worth was reported as US$30.4 billion, making him the third-richest person in China.[15]

The under-construction Ocean Flower Island, located in Hainan, is one of its major projects. Evergrande Plaza, in Chengdu, was designed by Aedas, and completed in 2014.[16]

Evergrande Health, a listed subsidiary of Evergrande Group, is now the largest shareholder of Faraday Future, after having acquired a 45 percent stake in the automotive company, for a total of $2 billion.[17]

Citron Research report

In 2016, the Hong Kong Market Misconduct Tribunal (chaired by Mr Justice Hartmann) suspended American short seller and Citron Research founder Andrew Left for five years, due to the publication of a highly critical report on the company, "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."[18][19][20] The trading ban "has raised concerns over freedom of speech in Hong Kong’s financial markets."[21]

See also

References
  1. https://finance.sina.com.cn/zt_d/2019_zq500qbd/.
  2. "Evergrande draws eight strategic investors for Shenzhen listing". South China Morning Post. 2 January 2017.
  3. "China's Evergrande tops world's most valuable real estate brand: report - Xinhua | English.news.cn". www.xinhuanet.com.
  4. "China Evergrande Group". Fortune.
  5. "Developer China Evergrande H1 core profit jumps over three-fold". The Business Times.
  6. "Evergrande profit surge brings share price gains to almost 400%". The Business Times.
  7. "A Look into China Evergrande Group (3333.HK)'s Recent Activity – JCTY News". jctynews.com.
  8. "China Evergrande Group (3333.HK) Shares Move 18.63% – Concord Register". www.concordregister.com.
  9. Or, Amy (October 30, 2009). "Evergrande Gets $722 Million". Wall Street Journal.
  10. 恒大冰泉概览 Archived 2014-07-01 at the Wayback Machine
  11. Josh Noble; Gabriel Wildau (January 15, 2015). "Dalian Wanda changes property strategy after IPO". Financial Times.
  12. "Evergrande launches IPO with generous terms" Archived 2008-08-25 at the Wayback Machine, Finance Asia
  13. "Alibaba, Evergrande-owned soccer club files for China IPO in Asian first". Reuters. 2015-07-02. Retrieved 2020-04-17.
  14. , Zeenews
  15. "Hui Ka Yan". Forbes. Retrieved 2019-03-22.
  16. Evergrande Plaza, a Hong Kong-style shopping mall, opens in Chengdu. Retrieved 15 December 2015.
  17. "Faraday Future reveals the source of its $2 billion investment as a co-founder steps away". The Verge. Retrieved 2018-06-26.
  18. "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.
  19. "The report of the Market Misconduct Tribunal into dealings in the shares of Evergrande Real Estate Group Limited on 21 June 2012 (Part I)" (PDF). Market Misconduct Tribunal. 26 August 2016.
  20. "The report of the Market Misconduct Tribunal into dealings in the shares of Evergrande Real Estate Group Limited on 21 June 2012 (Part II)" (PDF). Market Misconduct Tribunal. 10 November 2016.
  21. 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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