China Evergrande vows to build 600,000 homes in 2022 and fully restore operations as it tries to sell its way out of its debt
- Evergrande has about 220 billion yuan of funds in hand and contracted cash, Hui Ka-yan said during a Sunday meeting, according to a person familiar with the matter
- The Guangzhou-based developer aims to fully restore construction operations and resume selling as soon as possible, Hui said
Evergrande plans to fully restore its construction operations this month, the Guangzhou-based developer’s chairman Hui Ka-yan said during an internal meeting on Sunday, according to a person familiar with the matter. Property sales will resume as soon as possible to help resolve the company’s debts, Hui said.
The developer has about 50 billion yuan (US$7.9 billion) of funds in hand from pre-sold apartments, 170 billion yuan of contracted cash awaiting collection, and assets that can be sold, Hui said in the meeting, according to the person.
Evergrande’s spokespeople declined to comment. The developer, facing more than US$300 billion in liabilities, had been selling assets in its portfolio and under the personal holdings of Hui – once the wealthiest man in China – to pay its banks, suppliers, onshore bondholders and international investors.
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The company’s shares rose 1.2 per cent to close at HK$1.67 in Hong Kong on Wednesday.
“Quickening the pace of construction and sales can technically generate cash, but it will not entirely help Evergrande overcome the financial woes,” said Wang Feng, chairman of Shanghai-based financial service company Ye Lang Capital. “Hui’s remarks are more likely a message to some local governments that Evergrande will do its best to keep the projects alive.”