Evergrande Gains After Chinese Builder Is Said to Set Pre-Crisis Level Home Delivery Target
Lin Caiwei
DATE:  Feb 10 2022
/ SOURCE:  Yicai
Evergrande Gains After Chinese Builder Is Said to Set Pre-Crisis Level Home Delivery Target Evergrande Gains After Chinese Builder Is Said to Set Pre-Crisis Level Home Delivery Target

(Yicai Global) Feb. 10 -- Shares of China Evergrande Group climbed after the chairman of the stressed property developer reportedly set a target to deliver as many homes this year as the firm did before it became mired in a debt crisis and ruled out a fire sale of assets.

Evergrande [HKG: 3333] closed up 5.4 percent at HKD1.76 (23 US cents) today, after earlier soaring as much as 7.7 percent. Its stock has gained 10.7 percent since the start of this year, after slumping 89 percent in 2021.

Evergrande aims to deliver 600,000 apartments this year after deliveries took a hit last year because of the suspension of projects, Chairman Xu Jiayin is reported as tellings staff at a meeting on Feb. 6. The firm handed over between 500,000 and 600,000 in 2019 and 2020, he said.

“We should not sell company assets cheap at any time to repay debts or we may not be able to pay them off even if all assets are sold,” Xu said.

After declaring a bond default for the first time on Dec. 3, the Shenzhen-based builder said last month that it planned to restructure its debt. It has liabilities in excess of USD300 billion.

Xu also noted that Evergrande has more than CNY50 billion (USD7.9 billion) in presale funds under supervision, nearly CNY80 billion in outstanding sales revenue, and houses on the market worth CNY90 billion.

Over 80 percent of its long-term partners including building contractors, materials suppliers, and decorators have stayed with the firm, Xu said, adding that Evergrande will pay suppliers in cash to reduce commercial bill costs.

Evergrande has a 56-million-square-meter project under construction without licenses to open, 160 million sqm of land reserves, and 150 renovation projects, Xu said.

Editor: Futura Costaglione

Follow Yicai Global on
Keywords:   Evergrande,Property