Evergrande Wealth Many People Arrested Xu Jiayin once said that "investors cannot be left with nothing"

7 days ago • 1 pageviews

On the evening of September 16, according to the "Shenzhen Nanshan Public Security" WeChat public account: Recently, the public security organs took criminal compulsory measures against Du and other suspected criminals such as Evergrande Financial Wealth Management (Shenzhen) Co., Ltd. (hereinafter referred to as Evergrande Wealth) in accordance with the law. If investors need to report a case, they can register the case in the following ways:

Method 1: Report the case online. Pay attention to the "Shenzhen Economic Investigation" WeChat public account, click the "Police and Citizen Interaction" menu bar, and select "Investor Information Registration" to register and report the case online.

Method 2: Report the crime by telephone. Call 0755-33326110.

Method 3: Report the case by SMS. Edit "Name + Valid ID Number + Contact Phone Number + Investment Platform + Investment Amount + Amount to be Redeemed" and send it to the SMS platform with 1069055920200110.

Method 4: Report by mail. Investors can mail the report materials to the Economic Crime Investigation Brigade of the Nanshan Branch of the Shenzhen Municipal Public Security Bureau and indicate the "Evergrande Wealth Report Materials" (Address: Economic Investigation Brigade, Nanshan Public Security Branch Investigation Building, No. 28 Quanyuan Road, Nanshan District, Shenzhen, 518000).

The above four ways of reporting a crime are equivalent to reporting a case in person to a public security organ. If necessary, you can go to the nearest public security organ of your place of residence to report the case, and the public security organ of your place of residence will hand over the report materials to our bureau.

At present, the case is being further investigated.

Shenzhen Nanshan Public Security Case Report

Just 16 days ago, on the evening of August 31, the WeChat public account of Evergrande Wealth, a subsidiary of Evergrande Group, posted that because the company's asset disposal progress was not as expected, and the asset disposal funds were not obtained, the company could not carry out this month's payment. Subsequent payment arrangements will be announced separately.

Evergrande Wealth issued an announcement

On May 31 this year, Evergrande Wealth issued an announcement that since September 2021, the company has fully promoted asset disposal to raise funds for payment, completed a total of 20 payments, and made the monthly payment on the same day. Due to the unsatisfactory return of the company's funds, the available funds in the month were insufficient and could not be paid according to the original standard. The Company will continue to promote asset disposal and strive to raise funds for payment.

Previously, Evergrande Wealth issued several announcements to adjust the payment plan.

According to public information, the initial payment plan of Evergrande Wealth in September 2021 was that for the mature part, you can choose a cash payment plan: 10% at the end of the month of maturity, and 10% every 3 months for the remaining part.

For the part that is due or not due and requires early payment, it can be offset by physical assets: 7.2% off for residences, 5.4% off apartments, 4.8% off shops and parking spaces, and online house selection is opened at the end of each month, including the income from the subscription date to the day of successful application. However, the premise is that the mortgage price must not be lower than the lower limit of the local filing price, otherwise the latter shall prevail.

The third payment method is to offset the final payment of the purchase of the house: if you have subscribed for any Evergrande house before 24:00 on September 12 but have not yet paid the final payment, you can use the wealth management line to offset the final payment of the purchase of the house by yourself or others.

On December 31, 2021, Evergrande Wealth released an announcement on the adjustment of the payment plan of investment products on its official website:

1. December 2021 and January and February 2022: RMB 8,000 will be paid to each investor every month. If the remaining principal is less than 24,000 yuan, the remaining principal shall be paid until the remaining principal is repaid.

2. March 2022 and beyond: The company will actively raise funds to further improve the follow-up payment plan on the basis of the implementation of Article 1 of the "Payment Plan", and the subsequent payment plan will be announced in late March 2022. The company will accelerate the disposal and realization of various assets through transfer, auction, establishment of trust plans, litigation and other means, and all the funds obtained will be used for the redemption of investment products.

Subsequently, in March 2022, Evergrande Wealth announced that it would continue to implement the payment plan.

On the afternoon of November 30, 2022, Evergrande Wealth adjusted the payment plan, and adjusted the payment plan released on December 31, 2021 from that month. Specifically, since September 2021, Evergrande Wealth has completed a total of 14 payments. Due to the fact that the asset disposal and payment funds were not as expected, in order to protect the rights and interests of investors, after research, it was decided to adjust the current monthly payment of 8,000 yuan per person to 2,000 yuan per person per month, and other contents remain unchanged.

Screenshot of Evergrande Wealth announcement

It is worth noting that on September 10, 2021, Xu Jiayin made it clear at the Evergrande Wealth Conference that it is necessary to ensure that all mature wealth products are paid in full as soon as possible, and not a penny can be less.

Xu Jiayin once stressed that in the process of payment, it must be fair and just, no one is allowed to engage in specialization, it has not happened before, and it will never happen in the future.

According to the Securities Times·e Company, Xu Jiayin also said at the time: "I can have nothing, but the investors of Evergrande Wealth cannot have nothing!"

On the evening of August 25, 2023, China Evergrande announced that the company actively promoted the work of guaranteeing the delivery of buildings with the greatest efforts, and a total of 301,000 sets of buildings were delivered in 2022.

On August 27, China Evergrande released its 2023 semi-annual report. During the period, revenue was RMB128.2 billion, up 44% year-on-year, and gross profit was RMB9.8 billion, up 38% year-on-year. During the period, the operating loss was RMB17.38 billion, the non-operating loss (including litigation, land recovery, equity disposal and asset appraisal impairment and other losses) was RMB15.03 billion, income tax expense was RMB6.84 billion, and the total net loss was RMB39.25 billion. Evergrande's total liabilities fell slightly to 2,388.2 billion yuan from the end of last year, and its liabilities after excluding pre-received housing payments were 1,784.2 billion yuan. Among them, interest-bearing loans amounted to 624.8 billion yuan, engineering materials and other payables amounted to 1,056.6 billion yuan, and other liabilities were 102.9 billion yuan. Up to now, Evergrande has handed over 242,000 sets of buildings this year. This year's cumulative sales are about 40.5 billion yuan, a year-on-year increase of 123%.

Edit|Sun Zhicheng Du Hengfeng

Proofreading |Zhao Qing

Cover image source: Visual China (picture and text unrelated)

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