On July 13, in response to the news that Vanke and Jinmao recently acquired Evergrande project asset package, Evergrande group said, “the relevant information is seriously untrue, and will reserve the right to investigate the legal responsibility of malicious rumor makers.”
Recently, it was reported that Li congrui, President of China Jinmao (00817. HK), led a high-level delegation to discuss a package acquisition negotiation with Xia Haijun, President and vice chairman of the board of directors of Evergrande group. He said that Jinmao had selected 30 or 40 projects from Evergrande group in Dawan District, with a total value of tens of billions. In addition to Jinmao, Vanke is also considering acquiring the project of Evergrande group.
According to the data disclosed in the annual report of China Evergrande (03333. HK) in 2020, in terms of land reserve, the land reserve area of Evergrande’s marketable residential buildings in 2020 is 231 million square meters, the average floor price is 2120 yuan / square meter, and the total number of projects is 798. Among them, the original value of soil storage in first and second tier cities is 328.7 billion yuan, accounting for 67%, and that in third tier cities is 161.4 billion yuan, accounting for 33%, with an average floor price of 1515 yuan / m2.
In 2020, there will be 140 newly purchased projects, of which about 22% will be acquired through acquisition and merger. The newly purchased and saleable residential land storage area is 68.92 million square meters, the original value of land storage is 137.2 billion yuan, and the average floor price is 1992 yuan / square meter.
As for the Dawan district project mentioned in the market news. By the end of 2020, China Evergrande has 100 old reform projects, including 78 in Dawan District, 8 in Taiyuan, 2 in Shijiazhuang, 2 in Zhengzhou and 10 in other cities. The project under construction covers an area of 132 million square meters. In 2020, 73.92 million square meters will be completed and 82.37 million square meters will be newly started. In 2021, 92 million square meters of pre-sale certificates are planned for the new area, and 137 million square meters of sales volume can be sold in the whole year.
According to the 2020 annual report of China Jinmao, one of the rumored purchasers, as of the end of 2020, China Jinmao held 43.455 billion yuan in cash and cash equivalents, and 97.578 billion yuan in interest bearing bank loans and other loans.
From the perspective of “three red lines”, by the end of 2020, the asset liability ratio of China Jinmao after excluding advance payment is 66%, which is 8% lower than that of the same period in 2019 to reach the standard; The net debt ratio decreased by 53%, which was 32% lower than that in the same period of 2019; The non restricted cash to debt ratio is 1.56, which is about 0.89 higher than that in the same period of 2019.
In the face of the pressure of “three red lines”, Xu Jiayin, chairman of the board of directors of Evergrande group, has been releasing Evergrande’s information on reducing its debt.
According to the news released by Evergrande group, as of July 6, the interest bearing liabilities of China Evergrande were about 570 billion yuan, down about 300 billion yuan compared with the highest 874.3 billion yuan in 2020. At the same time, the net debt ratio decreased to below 100%.
According to Xu Jiayin’s downsizing plan for the next three years, China Evergrande will reduce its net debt ratio to less than 100% on June 30, 2021, cash to debt ratio to more than 1 on December 31, 2021, and asset liability ratio to less than 70% on December 31, 2022, so as to fully meet the regulatory requirements and turn the “three red lines” green.
By the end of June, China Evergrande had achieved a total contract sales amount of 356.79 billion yuan, a contract sales area of 430.14 million square meters, and a total sales revenue of 321.19 billion yuan. According to the sales target of 750 billion yuan set by China Evergrande in 2021, the company has achieved 47.57% of the annual target.
At press time, China Evergrande news was at HK $9.21 per share, down 1.39%.