It’s fair to say that, the Evergrande Group has had a lot of controversies. We’re going to explore why that is and also cover Everangrade Group statistics and some facts, too.

The Evergrande Group, founded by Chairman Hui Ka Yan, is a Chinese company established in Guangzhou in 1996.

With a sale amounting to $110 billion, assets worth $355 billion, and over 1,300 developments worldwide, it became China’s second-largest property development in 2020. 

The strategy that Evergrande had implanted was buying short-term loan-supported land and selling apartments instantly at a cheaper rate which eventually helped this Chinese property company to grow at a quicker pace. As per its interim report, it employed a total of 163,119 staff at the end of June.

However, the China-based company had gathered an enormous sum of debt during its expansion process. By the end of August 2021, Evergrande had a debt of over 300 billion US dollars.

Simultaneously, the per month sales of the company also witnessed a decline, making it fail to pay off its debt. And that’s the breaking point for the company.

In no time, the reports of Evergrande failing to pay off its bond came out, and global attention turned toward the company.

With the fall in their market, the two banks in Hong Kong declared that they would not give any new loans to the buyers of Evergrande homes.

Additionally, various rating agencies downgraded the creditworthiness of the property developer, making the scenario even worse.

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Key Evergrande Statistics

1. Evergrande has a revenue segment of over 464 billion yuan in property development in 2020

2. Evergrande owns over 1,300 real-estate projects in China

3. Evergrande has a debt amounting to 300 billion dollar

4. 12 million homeowners live in properties constructed by Evergrande

5. Evergrande operate enough land to cover the whole territory of Manhattan

6. The debt of Evergrande is equivalent to 2% of China’s GDP

7. Evergrande is indirectly responsible for creating 3.8 million jobs

8. Better half of the assets and liabilities of Evergrande Group 2020 belongs to its property development section

9. Net profit of the Evergrande Group as of 2020 is 31.4 billion yuan

10. Gearing ratio of Evergrande Group reduce by 10%

Evergrande Group Financial Statistics

Revenue of the Evergrande group from 2010 to 2020

According to historical statistics, the revenue of the China-based property developer Evergrande has increased significantly during the period of 2010 to 2020.

During the year 2010, the company had a revenue of 45 billion yuan, whereas its revenue increased to 133 billion yuan in 2015.

Moreover, its revenue has shown a significant rise since then, with numbers touching 507 billion yuan in 2020. However, along with revenue, its liability has magnified too. 

Evergrande has a revenue segment of over 464 billion yuan in property development in 2020

Evergrande group is not limited to making houses only; they’re also into offering life insurances, manufacturing sports goods, and more.

However, they’re mostly into property developments. As per the surveys carried out, it is seen that the property development sector of the Evergrande group has generated a revenue of 464 billion yuan as of the end of 2020, among total revenue of 507 billion yuan.

Contracted sales area of Evergrande group during 2010 and 2020

China’s property developer, Evergrande, has contracted sales of over 723 billion yuan in 2020, which used to be 601 billion yuan in 2019; that is, it shows a rise of 20.3% in a year suppressing its target by 111%.

Talking about the sales area, it rose to 80.9 million square meters from 58.5 million square meters in just one year.

Meanwhile, as of December 2021, its contracted sales reduced to 44.9 billion yuan, and the sales area dropped to 5.1 million meters.

Net profit of Evergrande group from 2010 to 2020

As per the data collected, the Chinese company generated a profit of around 31.4 billion yuan in the year 2020.

Evergrande Group Statistics: Size

Evergrande owns over 1,300 real-estate projects in China

Evergrande, being China’s second-largest real estate company, has constructed over 1,300 real-estate projects in over 280 cities across the nation. Most of these are sprawling houses.

Moreover, experts believe that if the Evergrande group collapses, it’ll greatly impact the entire Chinese economy.

Evergrande has a debt amounting to 300 billion dollar

china evergrande group

Source: AsiaNews

Although Evergrande was once China’s top property developer, it is now facing a huge backflush. According to recent statistics, it currently has an estimated liability of 300 billion dollars.

That’s enough to cover the full liability of Panama ($31.7 billion), Iceland ($20.3 billion), the Philippines ($97 billion), Peru ($93.3 billion), and Bulgaria ($46.5 billion) combined.

12 million homeowners live in properties constructed by Evergrande

As per the official website of Evergrande, it has constructed properties for more than 12 million homeowners and has projects in 280 cities across the country.

This implies that more people live in properties constructed by Evergrande than in any of these countries- Portugal (population 10.1 million), Sweden (10.1 million); Greece (10.4 million); or Cuba (11.3 million).

Evergrande operate enough land to cover the whole territory of Manhattan

According to an announcement made in February 2022, the Evergrande has already constructed around 7.3 billion square feet of land and is now constructing 1.4 billion square feet of it.

When compared, Manhattan has a land area of 6.4 billion square feet or 23 square miles.

Evergrande is indirectly responsible for creating 3.8 million jobs

Evergrande says that although it has employed around 200,000 people, it is indirectly responsible for generating 3.8 million jobs each year.

That’s nearly enough jobs to employ the entire population of the city of Los Angeles, with a population of 3.98 million as of 2019, or every single person who lives in the state of Connecticut having a population of 3.5 million.

The debt of Evergrande is equivalent to 2% of China’s GDP

Evergrande currently has a debt of 300 million dollars which is around 2% of China’s total 14.7 trillion dollars gross domestic product (GDP).

Its liability is more than the total GDP of any of these countries: Qatar ($146.4 billion); Finland ($271.2 billion); Hungary ($155 billion); or Zealand ($212.5 billion)

Evergrande Asset and Liability Statistics

Total assets of Evergrande group during 2020

The value of the total assets of the China-based property developer Evergrande amounted to 2.3 trillion yuan as of 2020.

After the year 2015, Evergrande’s assets rose significantly, almost tripling during the last five years. However, by the end of September 2021, Evergrande missed repayment of a dollar-denominated offshore bond.

As a result, the dire financial situation of the company came into the spotlight.

Total liabilities of Evergrande Group between 2015 and 2020

As of 2020, the liability of the Chinese real-estate company Evergrande amounts to nearly 2 trillion yuan. Within a small span of six years, the liability of the company has increased by over three times.

However, Evergrande has minimized its gearing ratio considerably over the last few years. Moreover, the Chinese government has also made plans to deleverage the real estate industry and direct investments into other productive sectors.

Gearing ratio of Evergrande Group from 2015 to 2020

evergrande

Source: Daily Sabah

The gearing ratio is an indicator that measures the financial leverage of an enterprise and displays how much it relies on debt financing.

Since the year 2017, the real-estate company Evergrande has minimized its gearing ratio by over 10 percent, which is quite incredible. As of 2020, the current gearing ratio of the company is around 31.1 percent.

Better half of the assets and liabilities of Evergrande Group 2020 belongs to its property development section

As discussed, most of the segment of the Evergrande group is the real-estate company. And that is why most of the assets and liability of the group belong to the property development.

By the end of 2020, the property development segment of Evergrande Group holds an asset of 1.8 trillion yuan.

Simultaneously, the real-estate segment holds a liability of 847 billion yuan. As per reports, banks are the largest debtor of the Chinese company.

Value of different asset types of Evergrande Group as of 2020

In China, it is obvious for real-estate developers to collect a down payment from the purchasers before starting the process of construction.

The practice is good for developers as it helps them to finance the land purchase and construction process. However, the case is not the same for buyers.

This practice puts home buyers at risk because if the real estate developer by any means fails to conclude the construction, the buyers will be at a huge loss.

The assets value of construction in progress of Evergrande group as of 2020 amounts to 47 billion yuan.

Value of borrowing types of Evergrande Group as of 2020

The total borrowings of Evergrande Group (including banks and other borrowings) amount to nearly 421 billion yuan.

When compared with the data of last year, it is observed that Evergrande has deducted its long-term debt using borrowings with shorter maturity.

The collateral of the borrowings included land-use rights, properties and equipment, properties under development, and many more.

Value of borrowings of Evergrande Group during the year 2020, by maturity period

Statistics show that the debt of Evergrande group that is due within a period of one year was valued at 336 billion yuan as of the later part of 2020. Additionally, it is 47 percent of its total borrowings.

Although it has reduced its long-term borrowings, it needs to be reduced more if the company wants to survive in the market.

Evergrande Stock Performance Statistics

Per month performance of Evergrande Group shares during the years 2020 and 2021

evergrande2

Source: BondEvalue

The prices of each share of Evergrande Group at the Hong Kong Exchange amounts to 2.27 Hong Kong dollars as of 21 September 2021.

Compared to its share price in 2020, it has a significant decrease. Due to which the China-based real estate developer Evergrande faces a liquidity crisis of over two trillion yuan and threatens its future existence.

Annual performance of Evergrande Property Services shares during 2020-21

As per the Hong Kong Exchange, the per-share price of Evergrande Property Services fell to 4.2 Hong Kong dollars on 21 September 2021, compared to the previous year.

As the real-estate developer segment contributes a huge part to the Evergrande group, a fall in the prices of shares is a huge loss to them.

Monthly performance of the New Energy Vehicle Group shares of the Evergrande group during 2020-2021

Like every other famous and big company, the Evergrande group is not limited to the real-estate developer segment.

Its other businesses include Evergrande Life Insurance, etc. Moreover, a few years back, the Chinese company started a new vehicle company.

However, with the fall in the market of other Evergrande groups, the Evergrande Vehicle Group has also seen a downfall.

According to statistics, Its share price decreased to 2.9 Hong Kong dollars at the Hong Kong Exchange as of 21 September 2021 (which is quite less than last year’s stats).

Some Interesting Facts about Evergrande

  • 1. Evergrande was founded in the year 1996
  • 2. It was established by Xu Jiayin (Hui Ka Yan)
  • 3. The headquarter of Evergrande is located in Shenzhen, Guangdong, China
  • 4. As of 31 December 2020, there are 123,276 employees
  • 5. As of 2020, its revenue amounts to 507.250 billion yuan (the US $77.713 billion)
  • 6. The current operating income of the company is 63.520 billion yuan (the US $9.732 billion)
  • 7. Its net income is 8.076 billion yuan or the US $1.238 billion
  • 8. The total assets of Evergrande as of 2020 is 2,301 trillion yuan (the US $306.410 billion)
  • 9. Evergrande has total equity of 350.431 billion yuan (US$53.687 billion)
  • 10. It ranked 122nd on the Fortune Global 500

Conclusion

Evergrande is a China-based real-estate company established back in 1996. Evergrande Group is mainly a real estate developer, but it also has other associated businesses, that includes Evergrande Life Insurance.

Along with it, the conglomerate also operates Shengjing Bank. Based on the statistics provided, it is pretty clear that the company has been facing a huge loss since late 2020.

However, the Chinese property service company is implementing new strategies to overcome its loss. Also, it is the second-largest real estate company in China. So, if it collapses and fails to recover, the Chinese economy will be greatly affected.

References

  1. https://www.businessinsider.com/what-is-evergrande-china-real-estate-giant-scale-perspective-2021-9
  2. https://cnn.com/cnn/2021/09/24/investing/china-evergrande-group-debt-explainer-intl-hnk/index.html
  3. https://www.statista.com/topics/8577/evergrande-group/
  4. https://m.economictimes.com/news/international/business/explainer-whats-next-for-china-evergrande-after-missing-coupon-payments/articleshow/88139824.cms
  5. https://www.spglobal.com/marketintelligence/en/news-insights/blog/cop26-implications-for-the-financial-sector
  6. https://fortune.com/company/china-evergrande-group/global500/
  7. https://www.wsj.com/market-data/quotes/HK/3333/financials/annual/income-statement
  8. https://en.m.wikipedia.org/wiki/Evergrande_Group