According to reports, Evergrande s interest bearing liabilities have dropped by 300 billion a year,

In the past year, some of Evergrande's liabilities have dropped by about 300 billion, why is Evergrande in debt? I think this truth is more understandable, because it is a real estate companyReal estate companies play with capital flow, play with leverage, and play with the high rate of return generated under leverage, so they must have debts. <>

Build a house Suppose I am a real estate developer now, and it costs 1 billion to build this community, and I don't have that much money, but I still want to build this community, what should I do? There are basically no problems with the procedures of the other parties, but now I am short of 500 million funds. Then although I have 500 million in my hand, I don't want to use it all on this project, I can take out up 300 million on this project, because I must have a certain amount of liquidity to ensure the normal turnover of my businessSo I'm going to use financial leverage, because the company is quite large, and I can take out a loan.

Although the loan increases the liabilities of the enterprise, the balance sheet, since it is called the balance sheet, is to show both the assets of the enterprise and the liabilities and liabilities of the enterprise, and it is also an asset of the enterprise, but it is the kind of future obligation that leads to the possible outflow of the future assets of the enterprise, so it is not terrible to be responsible, because although I only have 300 million cash in my hand, I have borrowed more than 700 million yuan with leverage, and my financial leverage ratio is more than 200%.If I have a 5% return rate of these 300 million, then I have more than 200% of my financial leverage, and my return rate is more than 10%. <>

Although my risk has also increased, but my income has also increased, how can I play real estate without risk? Although the previous behavior of the real estate industry with empty gloves and white wolves is now unplayable, the real estate industry is originally risky to play with funds, because when it comes to such large projects of hundreds of millions or even billions, how can it be riskless? How can you make money without taking risks?

Otherwise, why people say that the real estate industry is a profiteering industry is because it is relatively risky.

Because all of Evergrande's businesses require a large amount of liquidity, and its industry cannot be quickly realized, it takes a while to recover funds, so it will be in debt.

Because Evergrande often borrows money from banks in order to build buildings, and the current property market is sluggish, it will be in debt.

That's because the problem lies with Evergrande, and this is also a problem with Evergrande's internal operation, which will lead to such a situation, so it must be responsible for it.

Dear, Evergrande's current debt situation is at least 2 trillion yuan. According to the publicly disclosed or missing data, Evergrande's 2021 annual report shows that the company's total liabilities are trillion, and in 2022, Evergrande's semi-annual report is released, and the company's total liabilities reach 2,363.3 billion. Compared with last year, the company's liabilities have increased by more than 300 billion.

For real estate companies like Evergrande, because Evergrande itself is expanding in a disorderly manner and borrowing funds aggressively, this has directly led to Evergrande's debt situation reaching 2 trillion yuan.

In 2021, Evergrande's total liabilities reached about one trillion yuan.

The real reason for the bankruptcy of Evergrande Chain is as follows:

1. The truth. 1. Xu Jiayin stepped down, and the industrial and commercial registration information shows that Xu Jiayin stepped down as chairman of Evergrande Real Estate Group and was replaced by Zhao Changlong, who is currently the executive director and vice chairman of Evergrande Property. In addition, the general manager and legal person of Evergrande Group have also been changed to Zhao Changlong.

On the official website of Evergrande Group, Xu Jiayin is still shown as the chairman of the real estate group, and many people speculate that Evergrande is going bankrupt as soon as the news of this change comes out, but some people say that it is just a normal change and will not affect others;

2. The truth. Second, by the "encirclement and suppression" of many places, Shaoyang once issued a notice asking Evergrande to stop pre-selling in the city, but later revoked this restriction. The Lanzhou Bureau of Natural Resources has also released the news that the development enterprises will make up for the arrears of the land transfer fee, including Evergrande, in addition to Changsha, Hunan, Chongzuo, Guangxi and other places, the Evergrande project has also been interviewed by the local ** because of the repeated occurrence of the above situation.

On July 28, Evergrande was also suspected of violating laws and regulations because the price was lower than the lowest house price in Heze City, Shandong;

3. The truth. Third, the predicament faced by Evergrande, the regulatory authorities issued "three red lines": the asset-liability ratio of real estate enterprises after excluding advance receipts shall not be greater than 70%; The net debt ratio shall not be greater than 100%; The "cash short-term debt ratio" of real estate enterprises is less than 1.

Although it is said that all real estate companies are treated equally by regulatory pressure, why Evergrande is the most dangerous, as the name "Evergrande" suggests, the pursuit of scale has almost become the company's unchangeable gene;

4. The truth. Fourth, don't use inertial thinking ** In the future, in history, Evergrande is like "a cat has nine lives", and it has repeatedly turned danger into disaster. But this time, the first is determined to move on real estate, and these policy orientations have been confirmed in the past.

If the entrepreneur still holds the illusion of selling the shed and the luck psychology and "game", he may end up in a sad end. From quantitative change to qualitative change is a gradual process, during which there will be some early warnings, the key is to see whether the entrepreneur is sensitive enough and decisive.

**Link.

Evergrande has trillions in debt.

In the past two years, the financing policies of real estate enterprises have gradually tightened, and the financial pressure of real estate enterprises has been increasing. The "faucet" of real estate financing has been tightened, and the capital chain is more important, Evergrande's industrial chain is too wide, if you don't engage in automobiles, grain and oil, don't engage in Shenshui, and don't engage in football, these money-burning things are not bubbling when they are invested in.

Evergrande has made hundreds of billions of dollars over the years, if not trillions! A large part of the money has been burned by these projects, so that even the debt of 100 million dollars has not been paid back now.

Evergrande's boss Xu Jiayin, everyone knows it, all of them are familiar with it, and who is the boss of Country Garden, if you ask a hundred people, there may be 80 people who don't know, you must know that high-profile costs money, you look at Boss Xu over the years everywhere to give speeches, show off everywhere, scenery everywhere, private jets, sky villas, Hong Kong mansions, eat imported fruits, participate in various celebrity activities, and often gather for dinner with female stars, etc.

These all cost money, otherwise how can anyone eat enough to listen to your braggadocio performance. In a word, Boss Xu is too high-profile, and he is willing to spend money, Country Garden Yang Guoqiang Boss Yang, a plasterer who is born and doesn't like to be in the limelight, and acts in a low-key manner, how many billions can be saved in these years alone.

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In fact, as a large-scale enterprise, Evergrande is not only making money quickly, but also spending money very quickly.

1. First of all, the dividend of corporate shareholders is a large amount of expenditure. It is reported that since 2015, the total dividends of Evergrande Group have exceeded 50 billion Hong Kong dollars. As the largest individual shareholder of Evergrande Group, Xu Jiayin alone has paid dividends of more than 40 billion.

2. Secondly, in addition to spending money to acquire land, Evergrande has also increased its layout of diversified business development in recent years. For example, in the new energy vehicle business sector alone, Evergrande has invested more than 40 billion yuan. However, it has not been effective, and as of now, the new energy vehicle business has not brought profits to Evergrande Group.

3. Finally, the "highly leveraged" operating model is also one of the main triggers for the sudden outbreak of Evergrande's debt crisis, and the risks behind this operating model are certainly not small. Wanda had suffered losses before and had to sell a large number of core assets to pay off its debts.

Extended Materials. Like most real estate companies, Evergrande has been implementing a "highly leveraged" operating model. However, thanks to its own huge scale, Evergrande has not encountered any major crisis in terms of capital chain. However, since 2021, news about Evergrande's debt exceeding the red line has continued to swipe the screen.

At the peak of debt, Evergrande's debt scale even exceeded 870 billion yuan.

Although by selling houses at low prices and some marginal businesses, Evergrande has reduced its debt scale to 570 billion yuan. However, it should be noted that Evergrande still has more than 200 billion commercial bill debts to repay. In this case, Evergrande's debt situation is still not optimistic.

Last month, there was also news that Evergrande will begin to take action on core businesses such as new energy vehicles and Evergrande property in order to repay debts.

According to the latest reports, Evergrande Group's current interest-bearing liabilities are about 570 billion yuan, a significant decrease of about 300 billion yuan from last year's peak of 870 billion yuan. This means that Evergrande has fulfilled its debt reduction commitments, and the intensity has far exceeded previous expectations. In March 2020, Evergrande announced the implementation of the development strategy of "high growth, scale control, and debt reduction", and achieved a significant reduction in hand debt through high sales growth and strict control of the scale of land bank with the greatest determination and efforts.

Earlier, Xu Jiayin proposed that Evergrande's interest-bearing liabilities will drop by 150 billion yuan per year, and a total of 450 billion yuan in the next three years, but last year alone, it will decrease by 300 billion yuan. <>

In October last year, Evergrande repaid about HK$29.4 billion in three installments within 10 days, and recently repaid HK$13.6 billion in debt principal and interest, which is also the seventh repayment of Evergrande's overseas bond principal and interest since March last year, totaling about US$10.6 billion, equivalent to HK$82.3 billion, all repaid with its own funds, without issuing new and repaying the old.

In terms of business, Evergrande Automobile was evaluated as having strong resource integration and walked out of the "second growth curve", but mass production is still far away. In 2020, Evergrande Automobile's revenue was 100 million yuan, a year-on-year increase of 175%, gross profit was 100 million yuan, a year-on-year increase of 43%, and an annual net loss of 100 million yuan. <>

According to Evergrande Automobile, the company has invested a total of 47.4 billion yuan in the new energy vehicle industry, and 24.9 billion yuan in vehicle R&D and design, power batteries, autonomous driving, intelligent network connection and other fields. It has applied for 3,012 patents at home and abroad, of which 1,355 have been granted. <>

In the context of continuous regulation and policy tightening in the real estate industry, it is rare for Hengdan to achieve the above results. According to the statistics of authoritative institutions in the industry, Evergrande's equity sales in the first five months reached 100 million yuan, ranking first in the industry and firmly in the leading position. The steady growth of Evergrande's performance is inseparable from the top-level strategy.

In addition to the rapid growth of the real estate industry, the coordinated development of various industries has also become a new engine to support Evergrande's steady development. At present, Evergrande has completed the transformation of "diversified industries + digital technology" based on Minsheng real estate. Its eight major industries have four major listing platforms, and Evergrande's diversification strategy is about to be harvested.

For the future development of Evergrande, people in the industry are quite optimistic, Evergrande has the strength and foundation, and Evergrande's interest-bearing liabilities have dropped by 300 billion a year, which also confirms this.

Personally, I feel that this means that Evergrande is likely to make a comeback, and now the market value of Evergrande is relatively large, and the future development is very good.

This means that Evergrande has exceeded the target of debt reduction, and the "burden reduction" has exceeded market expectations. As early as March 2020, Evergrande announced the implementation of the development strategy of "high growth, scale control, and debt reduction", and it would use the largest liquid potato-type decisive suspicion and maximum strength to achieve a significant reduction in hand fuel debt through high sales growth and strict control of the scale of land reserves.

This kind of thing happened to Evergrande Group, and I think it means that Evergrande's economy in recent years will not be very good. It can also be seen that some of the industries of Evergrande Group have been affected by the epidemic, and it can also be seen that there are many people in the eggplant shed, and the economic situation is not very good. The most important point is that this means that Evergrande will have a big economic crisis in recent years.

Evergrande itself is a trillion-level real estate enterprise, and you should know that the asset-liability ratio of the real estate enterprise itself is relatively high, to put it bluntly, it is its own own fundsIt's not as much as you might think, and it has a debt-to-asset ratio of more than 100%, which is entirely possible. <>

Evergrande's interest-bearing liabilities have fallen by 300 billion yuan in the latest year. It has dropped by 300 billion, which seems to be quite large, but if it is really compared with the market value of Evergrande, and compared with its total liabilities, this value is far away, not as big as you think, so what kind of asset-liability ratio is in the dangerous range of real estate enterprises, and what kind of asset-liability ratio is more suitable for real estate enterprises is more beneficial to the development of enterprises. Because the asset-liability ratio of ordinary enterprises should be maintained at 40% to 60%.However, real estate companies that have not been able to meet this standard are basically more than 80%, or even more than 100%. <>

Evergrande can reduce the ** of these bonds, these liabilities can be raised not simply because she wants to optimize the asset-liability structure, but to say that a lot of policy-related new requirements have been introduced recently, not that you can not repay the money if you want to repay the money by mistake, so large enterprises are restricted by a lot of rules and regulations, people are exposed to many more rules than us, what kind of money must be repaid, what kind of money can be put back that is very well known. Therefore, people know which liabilities should be lowered and when to optimize the asset-liability structure. <>

Evergrande itself, as a trillion-level real estate company, has a certain amount of assets and liabilities or a relatively high asset-liability ratio, which is normal, and there is nothing strange about it, because if you are interested, check it out, whether it is from a straight flush or from Sina Finance, which can be accessedIf you look at the leading companies in the real estate industry, there are a few of them with an asset-liability ratio of less than 60%, which is too little or too little.