Since the Evergrande Group broke out of the debt crisis, although Evergrande Group is also actively working hard to repay debts, the final result is not very satisfactory. According to the latest financial report of Evergrande Group, as of December 31, 2022, the total debt of Evergrande Group exceeded 2.4 trillion yuan. After seeing this astronomical amount, many people began to worry about whether Evergrande Group would go bankrupt and liquidate on this! I'm afraid the answer is no! Because the consequences of the bankruptcy and liquidation of Evergrande Group are too serious, it is still necessary to find ways to rescue it! Here, the editor wants to say that in the second half of 2023, if Evergrande wants to get through the debt crisis, the following 3 methods are worth trying, and the last one is a bit cruel!
Evergrande land
1. Sell part of the land
According to the latest financial report of Evergrande Group, as of December 31, 2022, it had a land reserve of 170 million square meters. And these lands have a high value, if they are all sold, even if they cannot pay off all the debt, the amount of debt will be greatly reduced to solve the urgent need. Even if you only sell part of the land, you can return some funds to ensure that the unfinished property is listed. As long as the real estate can be listed normally, it is not so scary!
Hengxing building plate
2. Sale of real estate at reduced prices
Many of the real estate projects under Evergrande Group are in a state of shutdown, the main reason is that there is no circulating funds. As mentioned earlier, if Evergrande Group can sell part of the land to collect some funds, it may be able to ensure the continued construction of the building, thereby reducing the risk of unfinished buildings. If the listing of the real estate can be guaranteed, then the future return of funds will be faster!
At present, the annual loan interest of Evergrande Group alone is as high as tens of billions of yuan. If you can't significantly reduce the amount of debt in a short period of time, then relying on the current revenue situation alone, even the interest can't be repaid, it's scary to think about!
In addition to selling land, the price reduction promotion real estate has become a lifesaver for Evergrande Group. For those properties that have been completed, Evergrande Group will presumably consider price reduction promotions in order to quickly return funds. Because Evergrande Group has already played word of mouth badly, if it does not carry out price reduction promotion, I am afraid that no one will buy Evergrande's house! Only price reduction promotions can increase revenue.
Salary cuts and layoffs
3. Appropriate salary reduction and layoffs
The previous article is the method of increasing the revenue of Evergrande Group, and the next step is to save costs! You must know that the employee treatment of Evergrande Group is one of the best in the industry, and now there is a debt crisis, I am afraid that the treatment of employees will be reduced.
Looking at Country Garden, in 2022, the total welfare expenditure of Country Garden employees will be 12.581 billion yuan, a decrease of 25.64% compared with 16.919 billion yuan in 2021. With the decline in performance, Country Garden signed supplementary agreements on director services with some directors on March 31 and September 7, 2022, and reduced the remuneration of directors. Mo Bin was adjusted from 15 million yuan to 3 million yuan; Yang Ziying was adjusted from 10 million yuan to 2 million yuan; Yang Guoqiang was adjusted from 10 million yuan to 300,000 yuan.
In addition to salary cuts, layoffs are also imperative, and for those redundant positions or business units that cannot bring revenue to the company, it is necessary to cut employees significantly to save expenses. Open source throttling is the king way to get through the debt crisis!
As a leading enterprise in the real estate industry, Evergrande Group must also have a headache after the outbreak of the debt crisis, after all, the amount of debt is as high as 2.4 trillion yuan! I'm afraid that all the methods he thinks of are just a drop in the bucket, and it is difficult to get out of the crisis in a short time! If you know today, why bother! I hope Xu Jiayin can lead Evergrande Group out of the crisis! Finally, the editor would like to suggest that Evergrande Group that in the second half of 2023, if Evergrande wants to get through the debt crisis, the above 3 methods are worth trying, and the last one is a bit cruel!