Half a year after the sale of some US dollar bonds of China Evergrande (03333.HK), Xia Haijun, president and vice chairman of the board of directors of Evergrande Group, made a reduction declaration to the Hong Kong Stock Exchange.
The Paper (www.thepaper.cn) inquired about the data and found that Xia Haijun sold 3 Evergrande dollar bonds in 14 installments between July 27 and August 17, 2021, until February 2022. The declaration was made to the Hong Kong Stock Exchange on May 9.
According to statistics from The Paper, Xia Haijun cashed out a total of about US$56.688 million (about 360 million yuan) through the sale of these US dollar bonds.
The three dollar bonds are 8.75% senior notes due 2025 with a principal of $28 million; 11.5% senior notes due in 2023 with a principal of $50 million and 11.5% with a principal of $50 million due in 2022 Senior Notes, notes are each with a face value of $100.
Judging from the price of the bonds sold by Xia Haijun, the average price is about 35.9%-52.4% of the nominal value. From this point of view, Xia Haijun's investment loss is about 71.4798 million US dollars (about 454 million yuan).
In addition to selling the dollar bonds he held, Xia Haijun also reduced his holdings in Evergrande Automobile (00708.HK), Evergrande Property (06666.HK) and Evergrande RV Bao Group.
According to the surging news query data, Xia Haijun reduced his holdings of 39,901,902 shares of NEW GAINS GROUP LIMITED at a price of HK$12.53 per share on March 28, 2021, accounting for the proportion of issued voting shares. 0.31%; On June 21, 2021, 14,652,040 shares of China Evergrande New Energy Automobile Group Co., Ltd. were reduced at a price of HK$27.3 per share, accounting for 0.15% of the issued voting shares.
On August 11, 2021, 10 million shares of Evergrande Property (06666.HK) were reduced at a price of HK$7.3026 per share; on the same day, 3 million shares of Evergrande Automobile (00708.HK) were reduced at HK$14.1785 per share. accounted for 0.12%.
Based on this calculation, Xia Haijun's above-mentioned reduction of holdings will total about HK$1.0155 billion (about 827.2 million yuan).
According to the information disclosed by the Hong Kong Stock Exchange, Xia Haijun will cash out about 1.1872 billion yuan in 2021 by selling Evergrande’s dollar bonds and reducing his holdings of Evergrande-related companies.
It is worth mentioning that Xia Haijun's above-mentioned sale and reduction of holdings all happened before Evergrande Group publicly announced that it was in a liquidity crisis, and it was not reported to the Hong Kong Stock Exchange until half a year later.
According to Hong Kong's "SFC and Futures Ordinance", directors of listed corporations who hold, no longer hold, sell or transfer the bonds of the corporation and related companies must make a declaration within 3 working days after they become aware of the transaction; if the first time To disclose the holding of bonds, directors must make a declaration within 10 working days after the transaction occurs, or within 10 working days after they become aware of the transaction.
Some analysts believe that Xia Haijun, an executive of a listed company, needs to make a declaration on time for the sale of Evergrande's dollar bonds, and the behavior of delaying the declaration for half a year does not meet the regulations.
In August 2021, there was news that the wealth management products of Evergrande Group were overdue and could not be redeemed. At that time, there was news that "Evergrande Group has a capital chain problem".
On August 19, 2021, the responsible comrades of the relevant departments of the People's Bank of China and the China Banking and Insurance Regulatory Commission interviewed the executives of Evergrande Group.
The People's Bank of China and the China Banking and Insurance Regulatory Commission pointed out that Evergrande Group, as a leading enterprise in the real estate industry, must conscientiously implement the central government's strategic deployment of the stable and healthy development of the real estate market, strive to maintain operational stability, actively resolve debt risks, and maintain real estate market and financial stability; Do a good job in disclosing the true information of major events in accordance with regulations, do not disseminate and clarify false information in a timely manner.
On September 10, 2021, Xu Jiayin, chairman of the board of directors of Evergrande Group, said at the Evergrande Wealth Symposium that Evergrande is currently encountering unprecedented difficulties. Resume sales as soon as possible, resume normal operations as soon as possible, and help the company overcome the crisis as soon as possible through steady and steady work.
On December 3, 2021, China Evergrande disclosed an announcement that it may not be able to perform its guarantee obligations.
The Guangdong Provincial People's Government stated that it immediately interviewed Xu Jiayin, the actual controller of China Evergrande Group that night.
At the request of Evergrande Real Estate Group Co., Ltd., the People's Government of Guangdong Province agreed to send a working group to Evergrande Real Estate Group Co., Ltd.
But so far, there has been no substantial progress in easing the liquidity of Evergrande Group.
On February 6 this year, Evergrande Group held a mobilization meeting for the 2022 New Year's construction of the building.
Xu Jiayin said at the meeting, "2021 is an extraordinary year for Evergrande Group, and 2022 is a critical year for us to get out of the predicament and move forward into the future. This year, we must fully start construction to ensure the delivery of buildings, and unswervingly complete the whole year. This is the most important task and work of this year to ensure the goal of handing over the building. At the same time, we must do everything possible to resume sales and operations, actively promote cooperation in all aspects, and strive to resolve various risks. Paying close attention to sales is the key to maintaining various projects at this stage. A key link in the continuity of resumption of work and production. It is necessary to achieve an average monthly sales payment of more than 10 billion yuan to ensure the construction of the project.”