Evergrande didn’t instantly reply to a request for remark from CNN Enterprise about Xu’s remarks.
The feedback — reportedly spoken throughout an inside assembly at Evergrande, based on the state-run 21st Century Enterprise Herald — come as the corporate has demonstrated some makes an attempt to get again on strong footing.
The corporate stated in a press release Sunday that it has resumed work on greater than 10 housing initiatives in southern Guangdong province, which will likely be delivered to homebuyers “one after one other.” It additionally made a key curiosity fee late final week that allowed it to remain out of formal default, based on Chinese language state media.
Within the remarks quoted by state media, Xu assured that the corporate may get again on observe by restarting work and resuming gross sales, which he stated would enable Evergrande to pay suppliers, buyers and monetary establishments.
The corporate’s Sunday assertion additionally stated that the initiatives in Guangdong have been in “full swing.” It stated in a separate assertion on WeChat that building at greater than 40 housing initiatives within the Pearl River Delta area — which is in Guangdong — is “continuing easily.”
China’s second largest developer nonetheless has large issues to deal with. It’s buckling below greater than $300 billion price of debt, and it faces a wave of upcoming curiosity fee deadlines.
It met final week’s deadline to pay $83.5 million price of curiosity on a US greenback bond, however that was on the tail finish of a 30-day grace interval. One other grace interval on a $47.5 million curiosity fee expires this Friday.
In the meantime, efforts to dump a few of its companies for money have not been going nicely. Simply final week, Evergrande stated it had known as off an settlement to promote a controlling stake in its property administration unit to a rival Chinese language developer, Hopson. That deal was valued at some $2.6 billion.
A pivot to electrical autos would even be a problem. The subsidiary answerable for that a part of the enterprise, China Evergrande New Power Car Group, has but to ship a single automobile. Automobiles aren’t even the vast majority of its enterprise, as well being administration dominates its gross sales, based on the subsidiary’s preliminary leads to June. (The corporate was previously known as Evergrande Well being Trade Group, however modified its title final yr to replicate its new precedence.)
Simply final month, the electrical carmaker acknowledged that it was having bother paying suppliers, and it known as off plans to promote new shares. Makes an attempt to dump a part of a stake within the EV enterprise to ease the broader firm’s debt disaster have additionally not come to fruition.
A shift in technique would additionally convey Evergrande into alignment with a few of Beijing’s largest priorities.
Traders on Monday cheered Xu’s optimism. Shares of the electrical automobile unit surged greater than 11% on Monday. However the inventory continues to be down 87% thus far this yr.
— to www.cnn.com