AutoBeta(AutoBeta.net)09/23 Report--

Today, Hong Kong Evergrande concept stocks opened higher, closing: China Evergrande rose 17.62% to HK $2.67 per share, with a total market capitalization of HK $35.38 billion. Evergrande rose 0.34 per cent to HK $2.91 per share, with a total market capitalization of HK $28.43 billion. Evergrande property rose 7.86 per cent to HK $4.53 per share, with a total market capitalization of HK $48.97 billion. It is not difficult to see that, in addition to Evergrande cars to achieve a small rise, China Evergrande and Evergrande property rose significantly.

Hong Kong stocks Evergrande concept stocks collectively opened high or with the late night of September 22, Evergrande Group held a "return to work and production guarantee building" special meeting. At the meeting, Evergrande Xu Jiayin told more than 4000 company leaders at all levels that we must realize the importance of going all out to resume work and production, and that ensuring quality and quantity and smooth delivery of buildings is an obligation that the company must fulfill and a responsibility that the company must undertake. In addition, a number of banks have also publicly stated that the overall risk of doing business with Evergrande is controllable and there is sufficient collateral. Societe Generale said that it has been strictly monitoring the credit business of Evergrande Group, and the stock business is sufficient to meet the pledge. The Bank has been strictly monitoring the credit business of Evergrande Group, only involved in a small number of first-and second-tier cities and well-qualified real estate development project financing, did not involve the non-real estate sector, and the stock business is fully pledged. Since the beginning of this year, the credit exposure has been gradually reduced according to the project development progress to effectively control risks. For the stock credit business of Evergrande Group, our bank has comprehensively strengthened the project management, cooperated with the "Baojiao Building" of the local government, and actively took effective measures. Zhengzhou Bank said that Evergrande Group loan business is mainly real estate development loans, the overall risk can be controlled.

Recently, Evergrande Group is mired in a debt crisis, and Evergrande Group has been taking a series of measures to save itself. Evergrande issued an announcement on the Hong Kong Stock Exchange on September 21, granting share options to some independent non-executive directors of the company and some scientific and technical employees of the group. after the grantee accepts the share option, these share options will grant the grantee the right to subscribe for a total of 323.72 million new shares of the company, equivalent to about 3.31% of all issued shares of the company as at the date of this announcement. Evergrande insiders said the move would help stabilize the company's core technical team. On the evening of September 21, China Strategic Group announced that the company proposed to seek shareholder approval for the sale of the authorization in advance at the special general meeting of shareholders, allowing directors to sell up to 133.6 million Evergrande shares during the authorization period, which is equivalent to about 1.37% of the total issued shares of Evergrande, that is, all Evergrande shares held by China Strategic Group. China Strategic said the directors believed that it was fair and reasonable to compare the maximum discount of 20% to Evergrande's closing price in the previous five days, as it allowed the company to sell Evergrande shares flexibly within a reasonable price range in the face of adverse market sentiment and market conditions. China Strategic stressed that it could sell quickly if necessary, given the number of Evergrande shares held by the company.

It is worth noting that Evergrande's current market capitalization of HK $28.43 billion has "lost" more than HK $600 billion compared with the HK $640 billion market capitalization in February this year, due to a series of news from its parent company. On August 30th, Evergrande reported a net loss of 4.79 billion yuan in the first half of 2021, compared with a net loss of 2.531 billion yuan in the same period last year. As for the increase in the company's losses, Evergrande said it was mainly due to a decrease in gross profit of the health business, and that the company was in the investment stage of expanding the new energy vehicle business, resulting in an increase in marketing expenses and R & D investment in the new energy vehicle business. Evergrande also said it was facing cash flow challenges. It said that in the health valley and the living space of new energy vehicles, the company delayed the payment of suppliers and project payments, resulting in the suspension of some related projects. At present, with the coordination and support of the government, the company is actively striving for the resumption of the project. In addition, Evergrande said that Hengchi is in the stage of mass production, but the company still faces the challenge of cash flow, and the timetable for mass production of new energy vehicles may need to be postponed due to the lack of further capital investment in the short term.

Earlier, Xu Jiayin, chairman of Evergrande Group, put forward three grand goals for Evergrande to build cars, that is, Evergrande will become the largest and most powerful new energy automobile group in the world, with annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035. In 2019, Xu Jiayin also explained Evergrande's car-building road in five sentences: buy, cooperate, circle, big, good. It said that Evergrande car building has nothing and wants to take an unusual path. If you want to achieve world leadership in core technology, you have to buy and buy everything you can. At present, Evergrande has entered a situation of internal and external troubles, and it is still unknown whether it can survive this crisis. But Evergrande, as a subsidiary of Evergrande, is bound to be affected by it. The previous continuous decline in share prices is the most direct performance. It is not difficult to see that investors are now afraid to avoid Evergrande stocks.

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