Evergrande and HNA: History repeats itself again!
On the evening of September 28, 2023, Evergrande issued an announcement saying:
The Company has received notice from the relevant departments that Xu Jiayin, an executive director and chairman of the board of directors of the Company, has been taken compulsory measures in accordance with the law due to suspected violations and crimes.
Coincidentally, exactly two years ago, on September 24, 2023, HNA Group issued an announcement:
Today, I received a notice from the Hainan public security organ that Chen Feng, chairman of HNA Group Co., Ltd., was taken compulsory measures in accordance with the law because he was suspected of violating laws and crimes.
Brother Yi has been tracking and studying HNA and now finds that Evergrande Group has so many similarities with HNA.
Evergrande Group and HNA Group, a giant born from the real estate industry, and an A380 flew out of the civil aviation industry.
Let's talk about the names of two companies:
One has a big character, the other has a sea character, both have a very big meaning, I don't know who is bigger.
Xu Jiayin and Chen Feng, one is the richest man of the stormy figures, and the other is a famous big man who moves the rivers and lakes.
Let's take a look at how much similarity Evergrande Group has with HNA Group.
Whether it is Hainan Airlines under the leadership of Chen Feng or Evergrande under the leadership of Xu Jiayin, it has been full of bold words about the future.
Chen Feng, chairman of HNA Group, was once arrogant: no one in China could understand HNA.
Chen Feng said: The master of capital operation is to constantly call the wind and rain for his own money.
Xu Jiayin, chairman of the board of directors of Evergrande Group, is more domineering.
A plan of "big pattern, big strategy, and large scale" has been formulated
Real estate has become the first in the world.
Evergrande Automobile should be the first to do the first, and it must "buy, buy, buy", "combine", "circle", "big and big", and "good, good".
Under the leadership of Chen Feng, HNA Group has been soaring all the way.
From 2017, HNA Group, which soared to the world's top 500 companies with a revenue of 53 billion US dollars, to 2021, HNA Group ranked 170th with an operating income of 53.0353 billion US dollars.
This is the third consecutive year that HNA Group has appeared on the list, and it has jumped 183 places from 353 in 2016.
Since 2017, HNA Group's debt crisis has intensified, until the sudden epidemic finally completely crushed HNA Group.
As of February 2021, HNA Group:
Total assets of 253.2 billion yuan
Total liabilities are 1,039 billion yuan
Net assets - 785.8 billion yuan
It has become seriously insolvent overall.
With negative assets of nearly 800 billion yuan, such a big hole can be described as shocking.
In less than two years, HNA Group's net assets have decreased by 1,060 billion yuan, which is shocking and incomprehensible.
Evergrande is almost a copy of HNA.
Looking back at what Evergrande has done over the years, it is almost all a money-burning industry.
Naturally, there is no need to say that the old bank real estate is not mentioned.
In 2020, the sales amount was 703.5 billion yuan, ranking second in the industry.
Football.
Build a car.
Large children's playground.
In addition, Evergrande also entered the grain and oil, dairy and mineral water industries first.
In 2019, Xu Jiayin officially announced at the performance meeting that Evergrande's diversified industrial layout has been fully completed, and the group has formed an industrial pattern based on real estate, with tourism culture and health as the two wings and new energy vehicles as the leader.
In addition to the seven industries of Evergrande Real Estate, Evergrande Property, Hengteng Network, RV Bao, Evergrande Tong World, Evergrande Health and Evergrande Ice Spring, Evergrande Group also spent 45 billion yuan to build Evergrande new energy automobile industry, eight major industries, which are spectacular.
In the 2021 Fortune Global 500 list:
Evergrande Group's revenue was 73.51 billion US dollars, ranking 122nd, ranking first among real estate enterprises.
It was $22 billion more than HNA's revenue that year, and ranked 48 places higher.
Because the real estate industry has maintained a two-high-two-fast model in the past:
High leverage, high turnover, fast land acquisition, fast sales.
This seems to be no problem in the rapid development of the real estate market.
But once the real estate market goes down, there will be big problems.
Slow sales lead to the inability to quickly acquire land, and the obstruction of the model of fast land acquisition and fast sales will inevitably lead to a collapse of high turnover, which in turn will lead to a highly leveraged debt crisis.
It's just that when the crisis broke out in Evergrande, the problem was far more serious than we thought.
As of the end of June 2023, Evergrande:
Total assets of 1.744 trillion yuan
Total debt is 2.388 trillion yuan
Net assets - 644.2 billion yuan
The debt is as high as 2.4 trillion yuan, more than two HNA debts, enough to make everyone stunned
In the end, HNA, like Evergrande, the debt snowballed, the crisis became more and more intense, and it could no longer solve the problem on its own.
In the end, it is up to the government to help.
On February 29, 2020, at the request of HNA Group, the People's Government of Hainan Province took the lead in jointly establishing the "Hainan Province HNA Group Joint Working Group" together with professionals sent by relevant departments. The joint working group will fully assist and fully promote HNA Group's risk management work.
On December 3, 2021, at the request of Evergrande Real Estate Group Co., Ltd., in order to effectively resolve risks, protect the interests of all parties and maintain social stability, the People's Government of Guangdong Province agreed to send a working group to Evergrande Real Estate Group Co., Ltd. to supervise and promote the disposal of corporate risks, urge the effective strengthening of internal control management, and maintain normal operations.
Whether it is HNA or Evergrande, after the outbreak of the crisis, the government must help.
However, we found that during the real restructuring, the two founders more or less adopted the same attitude:
A bunch of big talk
But the body is very honest
Choose to lie flat
Transfer assets
Advance arbitrage
Yang and yin
The founder Chen Feng was imprisoned, but HNA Group successfully completed the restructuring and achieved nirvana rebirth.
In the end, HNA Group split into three segments
Hainan Airlines has returned to Fangda and is now seizing the opportunity of the recovery of the aviation market and spreading its wings
Hainan Airport was nationalized, quickly achieved profitability, and has unlimited prospects
Other assets belonging to creditor trusts are also rapidly transforming and gaining a new lease of life
In a sense, the founder became the biggest obstacle in the restructuring process
They can use their power, their accumulated authority, to do something beneficial to themselves, which hinders the smooth progress of the restructuring work
In doing so, they do just that:
Public interest
The interests of society
The interests of the state
Interested parties and able to stand idly by?
From this point of view, with Xu Jiayin being forced, it may not be a good thing for Evergrande!
In short, the history is so strikingly similar!
Many private enterprises seem to be unable to escape the barbaric growth
Some private entrepreneurs have higher hearts than the sky, and in the end, they will inevitably end up with lives thinner than paper and imprisonment.
As Chen Feng said, the development is too fast and smooth, the heart is inflated, and he thinks he can do everything.
But this is a reflection after the crisis, and how energizing and confident was it before the crisis erupted?
Perhaps these factors must be in the blood of entrepreneurs:
Dare to try, dare to be the first in the world, of course, there are also ambitions.
When the company is small, these factors are very important to promote the company to become bigger, but after the scale is large, some sense of crisis and risk may be very important.
In addition, coupled with multiple divine assists, it can be said that it has accelerated the rush on the road of expansion.
However, once the valve of crisis is opened, the flood is unstoppable.
In fact, in the past 40 years of reform and opening up, how many rich people have not escaped the iron law of "their prosperity is also prosperous, and their death is also sudden", from the Delong line of the three Tang brothers, to the Hainan Aviation department of Chen Wang and the two, and then to the current Evergrande lineage.
Over the years, due to personal ambition and desire, excessive diversification and expansion, the giant mansion collapsed and there was not only one HNA alone, and many of us were more or less wrapped up in it
How many investors
How many home buyers
How many beaters
However, for Chen Feng or Xu Jiayin, life has experienced falling from the peak to the bottom, yesterday was still a guest, today has become a prisoner.
There is a saying in the Western Bible:
There is nothing new under the sun, and what has happened is bound to happen repeatedly!
We are more familiar with:
Seeing him rise up Zhu Lou, seeing him banquet guests, seeing his building collapse...