Metallurgy / Chemicals / Rubber & Plastics

In recent days, Evergrande Group’s cash flow crisis has intensified and has affected employees’ self-interests. It is understood that investors cannot redeem their wealth management at maturity, and many investors have criticized Evergrande online. Subsequently, Du Liang, chairman of Evergrande Financial Services, admitted that on May 31, he had paid personal financial management in advance in violation of laws and regulations. At present, rights protection is being carried out across the country, and the scale of financial management is nearly 40 billion.

After foreseeing the huge risks of wealth management products and fully redeeming personal wealth management, we still advertise and promote Evergrande wealth management products, induce and mislead through false propaganda, use various threats and inducements such as demotions and salary reductions, and evaluate the marketing of all employees Under the task of selling wealth management, let tens of thousands of unknowing employees buy wealth management, and some even borrow money to purchase wealth management, causing serious economic losses.

Regarding the issue that mature wealth management products cannot be redeemed, Xu Jiayin made it clear at the Evergrande Wealth Conference on September 10 that we must ensure that all mature wealth products are fully redeemed as soon as possible, and that no one penny is missing. In order to solve the redemption problem of Evergrande wealth investment products, Evergrande has announced three redemption schemes for investors to choose from. That being said, whether it can be done or not is another matter. From the current situation, it can only be said that Evergrande is on the verge of something, and this time the matter is not trivial.

"The Emperor's New Clothes" was torn, how Evergrande's debt of 1.9 trillion yuan should be dealt with

Evergrande Wealth (formerly Evergrande Financial Services) exploded 40 billion, which seems to be a huge number, but compared with the current liabilities of Evergrande Group, it is a drop in the bucket. According to public data, as of the end of 2020, Evergrande’s total assets were 2.3 trillion yuan, total liabilities were 1.95 trillion yuan, and the ratio of total liabilities to total assets reached approximately 85%. And its current liabilities are 1.5 trillion yuan, that is, the liabilities that need to be returned within one year are 1.5 trillion yuan. It is difficult to repay the principal and interest on time by relying solely on the current Evergrande property sale to repay.

As the "Hengda Fall" incident had too great an impact, many parties are vigorously saving it. It is said that Zhujiang Investment, Guangzhou Urban Investment, Vanke, Poly and other central enterprises are negotiating with Evergrande to inject 600 billion yuan into Evergrande. Some people even discovered that Evergrande Real Estate has recently updated its shareholder information. Guangzhou Urban Investment Investment Co., Ltd. has become the third largest shareholder of Evergrande Real Estate, with a shareholding ratio of 4.8%.

According to relevant data, the total sales amount of Evergrande in 2018 was 551.3 billion yuan, the contracted sales amount in 2019 reached 6010.06 billion yuan, and the sales in 2020 were 723.25 billion yuan. On the whole, Evergrande can be used for repayment in one year. Sales revenue is only about 600 billion yuan. If you add the 600 billion yuan injected by central enterprises, there is a 300 billion shortfall compared with the 1.5 trillion yuan that needs to be repaid within a year.

So which "unlucky ones" will this 300 billion gap fall on? It seems that Evergrande’s employees and suppliers are likely to top the list. Among the many liabilities, banks, trusts, and financial institutions are the "big heads", and the interests of these institutions must be guaranteed. U.S. dollar bonds and domestic bonds are related to overseas income. If they do not have to escape supervision, it is also very necessary.

So what else can be delayed or even erased by using the "delay strategy"? The first is the trust part. The nature of the trust is different, so the heavyweight is also different. Whether the trust money can be returned depends on the trust company's methods. Another example is commercial invoices to suppliers, or unpaid accounts payable. According to Evergrande’s announcement, as of the end of 2020, Evergrande’s accounts and notes are nearly 900 billion.

The other part is Ant Financial, which has caused a major blow to employees and customers. Although the 40 billion in this area is indeed a fraction of the 300 billion, these amounts are divided into hundreds of thousands or even millions in each family. These big bosses The amount we may not look at is enough to destroy working-class families.

As an important supplier in the real estate industry, paint companies are very likely to become "victims" to fill the 300 billion loopholes. It is worth noting that not all coating companies are "qualified" to become "victims". Those who can supply leading real estate companies are also leaders in the coatings industry, such as Nippon, Keshun, and Karen. , This also reflects the high-end docking of the corresponding cooperation between the leading raw material companies and the leading real estate companies.

According to incomplete statistics, many coating companies such as Karen Co., Ltd., Zhanchen New Materials, China Resources Paint, Bardez, Keshun Co., Ltd., Oriental Yuhong, Asia Paint, Fuster, Meitus, Nippon Paint, etc. Large groups have established cooperation, and the purchase amount has reached more than one billion. In addition, the bills and accounts receivable announced in the financial reports of listed companies in the coatings industry are as high as several billion, which is enough to bring a huge crisis to the coatings companies, and may even cause the capital chain to break and the result of failure.