Debt 2 trillion scandal, to repay 300 million interest every day, the former richest man Xu Jiayin, why did he fall on the altar? It is undeniable that Xu Jiayin is a businessman with a brain, but his business path is like one

Debt 2 trillion scandal, to repay 300 million interest every day, the former richest man Xu Jiayin, why did he fall on the altar?

It is undeniable that Xu Jiayin is a businessman with a brain, but his business path is like a gambler, and if he gambles right, everyone is happy and continues to gamble; if he loses, he will struggle first, and he will let it go no matter what he uses. Although his charity is said to be remarkable, no amount of charity can make up for the current hole, in general, Xu Jiayin is a person with mixed achievements. Then, why did Xu Jiayin, the richest man in the past, fall off the altar, and I will give you a detailed analysis below.

Xu Jiayin's wrong decision in 2016

In 2016, in order to alleviate the housing pressure of the masses, the state clearly put forward the policy of "no speculation in housing", and repeatedly ordered five declarations to curb the real estate bubble. At that time, many people, like Xu Jiayin, thought that this policy was going to Lao Wang.

Not long after, as if to confirm everyone's conjecture, Lao Wang suffered a bear market in the stock market and the bond market at the same time, which can be called "double killing", the outside world spread that Wanda's debt was as high as 600 billion, and Lao Wang also changed from the richest man to the "first loss" overnight. In the face of ridicule and shrinking assets around the world, Lao Wang decisively attacked and chose to clean up assets. He sold many of Wanda's assets and solved $600 billion in debt in just a few years.

At that time, everyone thought that Lao Wang was surviving with a broken arm, but now it seems that it is a rapids retreating. Life is like a wild run, you need to make choices at every intersection. At this critical crossroads, Lao Wang chose to go left, while Xu Jiayin, who had a similar problem with Lao Wang, chose to the right.

It was also from this year that Xu Jiayin frantically added leverage to himself, not only in the main real estate business crazy expansion, but also on the road of diversification farther and farther, and even using high return commitments, continue to issue shares, increase shareholders' rights and interests, and tie institutional investors, suppliers and even executives and employees together.

Lice are not itchy, and debts are not worried

Xu Jiayin always firmly believes that big does not fall, with the idea of doing real estate, continue to cross-border operations, trying to find a new growth pole for Evergrande, the result of Evergrande Automobile, RV Treasure, Hengteng Network, Evergrande High-tech and other businesses, not only did not help Evergrande become a new growth pole, but let it sink deeper and deeper in the quagmire of debt.

Not to mention that they have provoked a commotion, enterprise employees and private capital have been involved, the money released by the bank has become a bad performance, every day they urge to repay the loan, and the people have paid money but have not got the house.

Anyone who has done business knows that companies generally have debt ratios

The so-called debt ratio is the comparison between total debt and total assets, to put it bluntly, it is to see how much of your family is obtained by borrowing money.

For example, if you do a fruit business, take 500 yuan yourself, borrow 500 yuan from a friend, and buy 1,000 pieces of fruit worth 1,000 yuan, then the debt ratio is 50%.

A month later, the fruit sold a part and paid off 200 friends, at this time, the debt ratio is 30% (the consumption and price fluctuation of the fruit are ignored here). If you are unlucky, when you buy goods, the fruit is broken, and you can't sell one, this is insolvent, and the next step is bankruptcy.

The same is true of real estate companies, before the development of the project, the purchase of land, construction teams, building materials, labor costs, etc., all need money, and often need to advance advances, which requires advance fundraising (the most common is loans), which is debt.

And its assets are only that piece of land, only by developing the real estate and getting the purchase price of the residents can it be considered really rich (it cannot be sold, it is a rotten building). For the real estate industry, its debt ratio is usually relatively high (the debt ratio of conventional enterprises is maintained between 40% and 60%, more than 70% is risky, but the debt ratio of banks is between 92% and 96%), and some can even reach more than 100%.

As a real estate boss Xu Jiayin is also like this, the more his assets, the more liabilities, there are report data show (the following data from the network, for reference only, total assets = assets + liabilities):

In 2015, Evergrande had total assets of 757 billion yuan and liabilities of 614.8 billion yuan;

In 2016, Evergrande had total assets of 1.35 trillion yuan and liabilities of 1.16 trillion yuan;

In one year, Evergrande added 102 million square meters of land, you know, since 2012-2015, Evergrande has added a total of 19.26 million square meters, but in 2017, Evergrande's new land reached a record 126 million square meters.

Xu Jiayin, who firmly believes in multiple directions and multiple roads, at this time, is actually "terminally ill", in 2020, Evergrande's total assets are 2.3 trillion yuan and liabilities are 1.95 trillion yuan. That's 1.95 trillion!

Xu Jiayin, who once replaced Wang Jianlin as the richest man, did not expect that the first thing he would do every morning in the future, when he opened his eyes, was to think about how to repay the 300 million yuan of interest in the bank. Xu Jiayin once announced his entry into new energy vehicles, and the result was a wrong market assessment, with more than 300 billion yuan invested before and after, but not a single car was built.

There is also news on the Internet that Xu Jiayin is preparing to sell Evergrande's headquarters building in Hong Kong, and it seems that Xu Jiayin is really at the end of the road this time. In the past, every time Xu Jiayin fell into a crisis, whether it was Zheng Yutong or Liu Luanxiong, there was always someone to help, I don't know if it was the reason for knowing at the card table, but this time no one dared to stand up. When the heavens and the earth work together, the heroes are not free.

When faced with a choice, only when the right choice is made, the picture of life will be more beautiful. I don't know if Xu Jiayin this time, when he dreamed back in the middle of the night, did he ever regret the choice in 2016?