Evergrande Auto magnification, Xu Jiayin has not failed!

2022-09-07 0 By

As the Spring Festival approached, Evergrande made another big move, and Xu did not lose!”See him rise tall buildings, see him feast guests, see his building collapse”, when an entrepreneur is successful, the world is extremely sought after and envy, and when he falls into the bottom, the world trample hard, anxious to never turn over the day.At that time, Wanda Group was heavily in debt and was in trouble. Many people said that Wang Jianlin was going bankrupt and let him show off. Especially his son Wang Sicong, he always knew to change girlfriends and show off his wealth.However, Wanda managed to save itself by selling off assets and developed better and better.The same scenario is now playing out for Xu Jiayin, the son of a poor rural family in Henan province, who is also a role model. He entered college in 1978, worked in a state-owned steel factory for 10 years, and then gave up his iron job to make his way south to Shenzhen, where he founded Evergrande in Guangzhou.Along the way, he gradually became the largest real estate company in China, and xu himself became the richest man in China.Successful, Xu jiayin is highly sought after.But since evergrande’s explosion in July last year, the debt of up to 2 trillion yuan has left Xu breathless.Words such as “capitalist” and “rich but heartless” were applied to Xu.Evergrande, which developed with high leverage, has no sense of responsibility, leading to the failure of so many buyers to deliver their houses properly and so many debts to be repaid.On the contrary, Xu jiayin has already cashed in tens of billions. There are mansions, luxury cars and private planes everywhere in Guangzhou, Shenzhen and Hong Kong.So, a lot of people say poor company, rich Xu.For such an entrepreneur, let him go bankrupt, let him fail completely.On January 26, Evergrande announced that it would restructure the company and come up with a preliminary restructuring plan in six months.We all know what restructuring means, which is to take the company’s assets, shares, cash and so on to pay off the debt.The reason for this restructuring must be that insolvency has already been reached.Therefore, many people believe that after the restructuring, Xu’s shares may be lost, completely losing the control of Evergrande.This means that after the restructuring, Xu jiayin’s career, which he has fought for over 20 years, has become nothing.However, Xu did not lose, and it is understood that evergrande Property and Evergrande Automobile will continue to operate independently during the reorganization.In fact, as early as Last October, Mr. Xu appeared to be looking for a way out, focusing on Evergrande while saving his own life.Even if evergrande’s property business is gone, there is still the car business.On January 4, evergrande’s first model, Hengchi 5LX, officially rolled off the production line.Someone posted a message of Evergrande New Energy Automobile (Tianjin) Co., Ltd. for 2022 on wechat moments, involving 11 departments and more than 100 kinds of positions, which means that Evergrande Will massively expand its recruitment.From the perspective of departments, there are stamping Department, body department, coating department, final assembly Department, Manufacturing quality Department, technical management department, etc. From this, we can see that Evergrande Automobile seems to be preparing for mass production.It is understood that hengchi 5LX is likely to achieve mass production in August this year.According to public data, evergrande motor previously had about 8,800 employees. Each of its three factories in Guangzhou, Shanghai and Tianjin used to have thousands of employees, but after a wave of employee turnover, the three factories now have a total of about 1,000 employees, and the production of a single factory is obviously understaffed.So more people will have to be deployed.To retain talent, Evergrande also implemented an equity incentive plan last September, benefiting 3,180 employees.In terms of core talents, Evergrande has previously recruited many employees from Geely, Toyota and other companies.But even if Evergrande could be Mr Xu’s turnround, he has little time.One is that car production qualification is not “lifetime”, but a two-year assessment period.It has been almost two years since Evergrande acquired Guoneng Automobile in 2019 and obtained the automobile production qualification, so it must speed up mass production.The other is money.Evergrande raised HK $3.2bn in a placement last year to get its first car off the production line, and sold several companies.However, for mass production, capital is more needed. If money is not available for purchasing various materials, it is difficult for suppliers to cooperate. After all, no one is sure about evergrande’s future.But in fact, if hengchi 5LX mass production success, sell is no problem.Evergrande’s marketing is absolutely first-class. It has held a launching ceremony for its first car for three times, which has attracted a lot of attention from the media and netizens.Secondly, Evergrande Automobile will do marketing for all employees and let employees sell cars.Another is that the market space of new energy vehicles is still very large, which can accommodate another evergrande.Data show that in 2021, China’s car sales reached 26.25 million units, accounting for 33% of the world’s car share, ranking first, in addition to new energy passenger car sales of 2.917 million units, up 155.4% year on year.Once Evergrande achieves mass production and sales, its market value will surely rise and financing will be easier.Evergrande can complete the reversal, Xu Jiayin can turn over.Finally, do you think Xu can rise?For more exciting content, come to the Digital Finance think Tank