The China Evergrande Group is a property developer with its headquarters in China. The company was incorporated in Cayman Islands. It has headquarters in Nanshan District, Shenzhen, China.
The company was established in 1996 by Xu Jiayin. It sells apartments to middle and upper income people in China. In 2018, China Evergrande Group emerged as the most valuable real estate company globally.
In 2021, China Evergrande Group collapsed financially and in August 2023 it filled for bankruptcy in New York. The China Evergrande Group was established during the period of mass urbanization in China.
By April 2022, China Evergrande Group had liabilities to a tune of $300 billion. In 2021 the company announced a net loss of $66.3 billion and $14.7 billion in 2022. As at December 2022, China Evergrande Group announced a loss of $340 billion. This led the company management to file for Chapter 15 of US bankruptcy code to be protected from creditors.
Real Estate
China Evergrande Group owns 565 million square meters of development land and real estate projects in 22 cities. The company most notable property development project is known as Ocean Flower Island located in Hainan.
China Evergrande Group has interests in tourism and recreation. It owns major theme parks such as Hengda Water World and Hengda children of the world.
In sports, China Evergrande Group acquired the construction of Guangzhou Evergrande Football Stadium in Panyu District of Guangzhou.
In Automotive world, China Evergrande Group acquired 45% stake in Faraday Future for $2 billion. The company partnered with State Grid Corporation of China to develop electric vehicle charging stations.
China Evergrande Group partnered with Tencent in 2015 to form Heng Ten Networks. In August 2021, China Evergrande Group sold 7 percent shares in Heng Ten to Tencent for $418 million. Later the company sold the remaining shares and effectively ended their relationship with Tencent.
In November 2015, China Evergrande Group acquired a 50 % shares in Sino-Singapore Great Eastern Life Insurance Company for $617 million and changed its name to Evergrande Life. The company also acquired shares in Shengjing Bank.
Food and Agriculture
In 2014, China Evergrande Group launched Evergrande Spring which produces mineral water. It hired the services of Jackie Chan to market the products. In 2016, after a loss, the China Evergrande Group sold its agribusiness units which included the dairy business, mineral water brand, oil and grain business. Later that year, the company announced that they were setting aside resources to establish 110 pig farms.
Billionaire businessman Xu Jiayin is the majority shareholder of China Evergrande Group with a 60 percent stake as at December 2021. Xu’s net worth was estimated to be $6.2 billion according to the Bloomberg Billionaires Index. At the peak of his career, his net worth was $45.3 billion as at 2017. He is the chairman of Evergrande football Club.
Finally, as we write this article the China Evergrande Group is facing a financial crisis and even filed for bankruptcy in New York in the United States of America.
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