History of Evergrande Group in Timeline
The China Evergrande Group, founded in 1996 by Hui Ka Yan, was a major Chinese property developer, ranking second in the country by sales. The company primarily targeted upper- and middle-income earners as its customer base for apartment sales.
1996: Evergrande Group Founded
Originally known as the Hongda Group, Evergrande was founded in 1996 by Hui Ka Yan in Guangzhou, China. The company's establishment coincided with a period of rapid urbanization in China.
1996: Evergrande Group Founded
The China Evergrande Group, originally named the Hongda Group, was established in Guangzhou, China, in 1996 by Hui Ka Yan (Xu Jiayin). The company focused on developing properties, primarily apartments targeted at the upper and middle-income segments of the population.
October 2009: Evergrande's Initial Public Offering
In October 2009, Evergrande took a significant step towards expanding its financial resources by launching an initial public offering (IPO) on the Stock Exchange of Hong Kong (SEHK). The company successfully raised $722 million USD through this IPO.
2010: Evergrande Acquires Guangzhou Evergrande F.C.
In 2010, Evergrande acquired the Guangzhou Evergrande F.C. football club and began investing heavily in top players.
June 2012: Citron Research Publishes Critical Report on Evergrande
In June 2012, Andrew Left, an American short seller and founder of Citron Research, published a highly critical report on Evergrande.
2013: Guangzhou Evergrande F.C. Wins AFC Champions League
In 2013, Guangzhou Evergrande F.C., under the leadership of coach Marcello Lippi, won the AFC Champions League.
2014: Evergrande Launches "Evergrande Spring" Mineral Water Brand
In 2014, Evergrande Group diversified its business portfolio by launching the "Hengda Bingquan" mineral water brand, later renamed "Evergrande Spring." The company invested ¥5.54 billion in this venture, even enlisting renowned actor Jackie Chan as its brand ambassador. However, the brand faced criticism from Korean consumers due to its labeling of the water source as "Jang bai shan" (Changbai mountains), the Chinese name for the mountain range bordering China and North Korea, instead of the Korean name "Mount Baekdusan." This choice of nomenclature sparked controversy and highlighted the sensitive geopolitical tensions surrounding the mountain's name.
2014: Evergrande Plaza Completed
In 2014, the Evergrande Plaza, located in Chengdu, was completed. The plaza was designed by the architectural firm Aedas.
March 2015: Evergrande Acquires New Media Group Holdings and Establishes Evergrande Health
In March 2015, Evergrande expanded its business portfolio by acquiring New Media Group Holdings, subsequently renaming it Evergrande Health. This newly formed entity focused on operating the "Evergrande Health Valley" in Nanning, a health and wellness park and retirement community. Evergrande Health also entered into a collaboration with Brigham and Women's Hospital in Massachusetts to manage the Boao Evergrande International Hospital in Hainan.
November 2015: Evergrande Acquires Stake in Sino-Singapore Great Eastern Life Insurance and Expands Financial Services
In November 2015, Evergrande expanded its presence in the financial services sector by acquiring a 50% stake in Sino-Singapore Great Eastern Life Insurance Company for $617 million, renaming it Evergrande Life. The company also held shares in Shengjing Bank and engaged in selling wealth management products to consumers.
2015: Evergrande Forms HengTen Networks in Partnership with Tencent
In 2015, Evergrande entered into a strategic partnership with Tencent to establish HengTen Networks, marking a collaboration between two prominent Chinese companies.
September 2016: Evergrande Sells Agribusiness Units and Invests in Pig Farms
In September 2016, following a significant loss of ¥4 billion, Evergrande decided to divest its agribusiness units, which included its mineral water brand, dairy business, and grain and oil business. The company sold these units for ¥2.7 billion. Later in the same year, Evergrande announced a strategic investment of ¥300 million to establish over 110 pig farms in southwestern Guizhou province, marking a shift in its agricultural focus.
2016: Chinese Government Launches Deleveraging Campaign
In 2016, the Chinese government initiated a major deleveraging campaign, impacting Evergrande's access to global junk bond markets. This campaign led Evergrande to increase its reliance on supply-side finance, such as collecting advance payments for unfinished apartments and expanding borrowing from suppliers and contractors. Despite these measures, the company began facing a liquidity crisis, even encouraging its employees to purchase financial products to improve its financial situation.
2016: Andrew Left Suspended by Hong Kong Market Misconduct Tribunal
In 2016, the Hong Kong Market Misconduct Tribunal imposed a five-year suspension on Andrew Left, founder of Citron Research. The suspension came as a result of a report published by Left in June 2012 that was highly critical of Evergrande. The tribunal found Left culpable of disclosing false or misleading information that induced transactions, violating the Securities and Futures Ordinance (SFO).
October 2017: Evergrande's Share Price Reaches All-Time High
In October 2017, Evergrande's share price reached an all-time high of over HK$31.
2018: Evergrande Becomes World's Most Valuable Real Estate Company
In 2018, Evergrande achieved a significant milestone by becoming the world's most valuable real estate company.
2018: Evergrande Acquires Stake in Faraday Future
In 2018, Evergrande, through its Evergrande Health subsidiary, made a strategic move into the electric vehicle industry by acquiring a 45% stake in Faraday Future for $2 billion.
July 2019: Evergrande Partners with State Grid Corporation of China
In July 2019, Evergrande formed a strategic partnership with State Grid Corporation of China to collaborate on developing electric vehicle charging stations, signaling its commitment to expanding its presence in the electric vehicle infrastructure sector.
November 2019: Evergrande Announces Investment in New Energy Vehicles and Hengchi Brand
In November 2019, Evergrande unveiled its ambitious plan to invest ¥45 billion (approximately $6.4 billion USD) over the next three years in the development of new energy vehicles. The company aimed to establish three production bases in Nansha, Guangzhou, and Shanghai, and launch electric vehicles under the "Evergrande New Energy Vehicle" brand by 2020. This marked the introduction of the Hengchi electric vehicle brand, showcasing Evergrande's commitment to becoming a major player in the rapidly growing electric vehicle market.
2019: Evergrande Acquires 51% Stake in NEVS
In 2019, Evergrande made a significant investment in NEVS, an electric vehicle company, by acquiring a 51% stake for $931 million, demonstrating its growing interest and investment in the electric vehicle sector.
2019: Evergrande Overstates Revenue by 214 Billion Yuan
In 2019, Evergrande engaged in financial misconduct by overstating its revenue by a staggering 214 billion yuan (around $30 billion), representing approximately half of its reported revenue. This deliberate misrepresentation of its financial performance later came to light during investigations by regulatory authorities.
April 2020: Construction Begins on Guangzhou Evergrande Football Stadium
On April 16, 2020, Evergrande initiated the construction of the Guangzhou Evergrande Football Stadium in Xie Village, Panyu District, Guangzhou.
June 2020: Evergrande Acquires Remaining Stake in NEVS
In June 2020, Evergrande solidified its control over NEVS by acquiring the remaining 49% stake for $380 million, following its earlier acquisition of 51% of the shares for $931 million in 2019. With this full acquisition, Evergrande NEV aimed to commence the production of electric cars by 2022.
August 2020: Evergrande Health Renamed to China Evergrande New Energy Vehicle Group Limited
In August 2020, Evergrande Health, both a division and a listed company, underwent a significant name change to China Evergrande New Energy Vehicle Group Limited, reflecting the company's strategic shift towards focusing on new energy vehicles.
October 2020: HengTen Networks Acquires Ruyi Pictures
In October 2020, HengTen Networks, a company formed in partnership with Tencent, made a significant move in the entertainment industry by acquiring Ruyi Pictures for a substantial sum of HK$7.2 billion.
2020: Launch of Evergrande New Energy Vehicle Brand
In 2020, Evergrande's investment in new energy vehicles came to fruition with the successful launch of its "Evergrande New Energy Vehicle" brand, signifying its official entry into the electric vehicle market.
2020: PwC Audits Evergrande's 2020 Accounts
In 2020, PwC completed its audit of Evergrande's financial accounts without raising significant concerns about the company's growing uncertainties.
2020: China Tightens Real Estate Market Regulations
In 2020, the Chinese government under CCP General Secretary Xi Jinping introduced stricter regulations for the real estate market to curb speculation. These regulations, known as the "three red lines," targeted risky borrowing practices by property developers like Evergrande.
2020: Evergrande Inflates Revenue by Nearly 80%
Continuing its pattern of financial misreporting, Evergrande inflated its revenue by almost 80% in 2020, resulting in an overstatement of 350 billion yuan ($48.6 billion). This manipulation of its financial figures further contributed to the company's downfall and subsequent legal repercussions.
August 2021: Tencent Acquires Stake in HengTen
In August 2021, Tencent increased its stake in HengTen Networks by acquiring a 7% share for US$418 million, further solidifying its presence in the company.
September 2021: Evergrande Liquidity Crisis Impacts Global Stock Markets
In the summer of 2021, Evergrande's inability to meet its massive debt obligations, estimated to be in the hundreds of billions of dollars, culminated in a liquidity crisis. This crisis contributed to a decline in global stock market indices on September 20, 2021.
September 20, 2021: Evergrande's Debt Crisis Impacts Global Stock Markets
On September 20, 2021, Evergrande's inability to meet its debt obligations sent shockwaves through global stock markets, causing a significant decline in many major indices. This event highlighted the interconnectedness of global financial markets and the potential systemic risks posed by large corporations like Evergrande.
October 2021: Evergrande's Asset Sale Fails, Interest Payment Missed
On October 21, 2021, Evergrande announced the failure of a $2.6 billion asset sale. The proceeds from this sale were intended to cover an $83 million interest payment that the company missed in September 2021.
October 2021: Evergrande Ends Sponsorship of Women's Volleyball Club
In October 2021, Evergrande terminated its sponsorship of the Women's Guangdong Evergrande Volleyball Club after supporting the team for 8 years.
November 2021: Evergrande Defaults on Three Bonds
On November 10, 2021, Evergrande defaulted on three additional bonds after missing the grace period for interest payments. Despite the missed deadline, a major news outlet reported that Evergrande fulfilled these payments after the grace period.
November 2021: Evergrande's Financial Standing Debated
Despite the massive scale of its debt in November 2021, there were arguments that Evergrande had not yet reached the point of insolvency based solely on its financial data. Reports indicated that Evergrande possessed significant assets, including land reserves valued at approximately RMB 2 trillion and various commercial properties, such as its headquarters building in Hong Kong, estimated to be worth around RMB 10 billion.
December 2021: Evergrande Officially Declared in Default
On December 17, 2021, S&P Global officially declared Evergrande in default following its failure to make a bond payment earlier that month.
2021: Disagreements Arise Over Evergrande's 2021 Audit
In January 2023, disagreements arose between Evergrande and PwC concerning the audit of the company's 2021 financial statements, ultimately leading to PwC's resignation.
2021: Investigation Launched into PwC's Audit of Evergrande
On October 15, 2021, Hong Kong's accounting regulator initiated an investigation into PwC's audit of Evergrande's 2020 financial statements. The investigation focused on PwC's decision to approve the accounts without flagging Evergrande's uncertainties as a growing concern, despite the company itself expressing worries about its ability to continue operations in its 2021 interim financial report.
2021: China's Real Estate Market Downturn
In 2021, the Chinese real estate market experienced a significant downturn with sales declining by 30% due to the new restrictions implemented in 2020.
2021: Evergrande Reports Significant Financial Losses
Evergrande's financial struggles in 2021 became more apparent when the company announced a substantial net loss attributable to shareholders, totaling 476 billion yuan (US$66.3 billion). This revelation further shook investor confidence and intensified concerns about the company's future.
2021: Evergrande Financial Collapse and the Chinese Property Sector Crisis
Evergrande's financial stability deteriorated significantly, leading to a collapse in 2021 that triggered a crisis within the Chinese property sector. The company's debt obligations, estimated to be hundreds of billions of dollars, played a major role in this crisis.
2021: Evergrande Health Division Remains Part of Evergrande Group
As of 2021, the health division continued to operate as an integral part of China Evergrande New Energy Vehicle Group Limited, which in turn remained under the umbrella of the Evergrande Group.
2021: Evergrande Reports Loss of 476 Billion Yuan in 2021
In July 2023, It was revealed that Evergrande experienced a substantial loss of 476 billion yuan in 2021.
January 2022: Evergrande Seeks Debt Moratorium and Government Intervention
In January 2022, facing mounting pressure from its debt obligations, Evergrande sought a moratorium on the early repayment option for one of its yuan-denominated bonds. Simultaneously, the Chinese government was reportedly intervening to restructure Evergrande and mitigate the ongoing crisis.
January 2022: Evergrande Shares Suspended and Resume Trading
On January 3, 2022, trading of Evergrande shares was suspended without a specific reason provided by the company. Trading resumed the following day, and the company's stock price saw a 10% increase.
March 2022: Evergrande's Share Price Hits Record Low
On March 15, 2022, Evergrande's share price plummeted to an unprecedented low of HK$1.16 (US$0.15). This significant decline marked a stark contrast to its peak value of over HK$31 in October 2017.
March 2022: Evergrande Sells Crystal City Project in Hangzhou
On March 30, 2022, Evergrande announced the sale of its Crystal City Project in Hangzhou for 3.66 billion yuan to Zhejiang Zhejian Real Estate Group and Zhejiang Construction Engineering Group. This strategic move aimed to generate funds to repay a construction debt of 920.7 million yuan owed to Zhejiang Construction Engineering. The sale was projected to result in a gain of approximately 216 million yuan for Evergrande.
March 2022: Evergrande Stock Price Prior to Suspension
On March 21, 2022, before the suspension of its stock trading, Evergrande's shares were valued at HK$1.65, reflecting the company's precarious financial situation at the time.
April 2022: Evergrande Resumes Construction Projects Amidst Ongoing Debt
Despite its massive debt burden of US$300 billion, Evergrande resumed construction on several projects in April 2022, signaling an attempt to stabilize its operations and generate revenue.
December 2022: Evergrande's Total Liabilities Reach 2.43 Trillion Yuan
By December 31, 2022, Evergrande's total liabilities had reached a staggering 2.43 trillion yuan (approximately US$340 billion), further underscoring the severity of the company's financial crisis.
2022: Evergrande Reports Loss of 106 Billion Yuan in 2022
In July 2023, it was revealed that Evergrande experienced a substantial loss of 106 billion yuan in 2022.
2022: Evergrande Relocates Headquarters to Guangzhou
In 2022, as part of its cost-cutting measures, Evergrande announced the relocation of its headquarters to Guangzhou.
2022: Evergrande NEV Aims to Start Electric Car Production
In 2022, Evergrande NEV, under the umbrella of Evergrande Group, set its sights on commencing the production of electric cars, leveraging the technology and expertise it had acquired through its investments in the electric vehicle industry.
January 2023: PwC Resigns as Evergrande's Auditor
In January 2023, PwC withdrew from its role as Evergrande's auditor due to disagreements over the audit of the company's 2021 financial accounts.
July 2023: Evergrande Announces Massive Losses and Upcoming Court Hearings
In July 2023, Evergrande made public its significant financial losses, reporting a net loss of 476 billion yuan (US$66.3 billion) for 2021 and 105.9 billion yuan (US$14.7 billion) for 2022. With total liabilities reaching 2.43 trillion yuan (roughly US$340 billion) by December 31, 2022, the company faced court hearings in Hong Kong and the Caribbean regarding the restructuring of its debts.
July 2023: Evergrande Reports Significant Losses
In July 2023, Evergrande revealed substantial financial losses, reporting a loss of 476 billion yuan for 2021 and a further loss of 106 billion yuan for 2022.
August 14, 2023: Evergrande Receives Strategic Investment from NWTN Group
On August 14, 2023, Evergrande Group received a much-needed financial boost in the form of a $500 million strategic investment from NWTN Group, providing a glimmer of hope for the struggling company.
August 2023: Evergrande Files for Chapter 15 Bankruptcy Protection and Stock Plunges
In August 2023, Evergrande filed for Chapter 15 bankruptcy protection in a U.S. court in Manhattan to shield itself from creditors. Following a 17-month suspension, trading of Evergrande stock resumed in Hong Kong, only to plummet by a staggering 79%, dropping from HK$1.65 on March 21, 2022, to 35 HK cents.
August 2023: Evergrande Files for Chapter 15 Bankruptcy
On August 17, 2023, Evergrande made a significant move by filing for Chapter 15 bankruptcy protection in New York.
September 2023: Evergrande Chairman and Executives Detained
In September 2023, billionaire chairman of Evergrande, Hui Ka Yan (Xu Jiayin), was placed under police control. Additionally, authorities detained former CEO Xia Haijun and former CFO Pan Darong, suggesting a potential investigation into the company's financial dealings and the circumstances leading to its collapse.
September 2023: Trading in Evergrande Shares Halted Amidst Investigation into Chairman
On September 28, 2023, trading of Evergrande shares was suspended following a report alleging that its chairman, Hui, was under police investigation for suspected criminal activities.
2023: Evergrande Files for Bankruptcy in the United States
In 2023, Evergrande took a significant step by filing for bankruptcy in the United States, marking a critical point in its financial struggles.
January 2024: Court-Ordered Liquidation of Evergrande in Hong Kong
Following its bankruptcy filing in the United States, a Hong Kong court ordered the liquidation of Evergrande in January 2024 after the company failed to present a viable restructuring plan. This decision officially marked the end of Evergrande's operations.
January 2024: Court Orders Liquidation of Evergrande, Halting Stock Trading
On January 29, 2024, a Hong Kong court delivered a decisive blow to Evergrande by ordering its liquidation due to the absence of a feasible restructuring plan. This decision triggered the immediate halt of trading in stocks of China Evergrande, China Evergrande New Energy Vehicle Group, and Evergrande Property Services, signaling the final chapter of the company's corporate journey.
February 2024: Evergrande Liquidators Prepare Potential Lawsuit Against PwC
In February 2024, liquidators handling Evergrande's case initiated preparations for a potential lawsuit against PwC.
March 2024: Evergrande Found Guilty of Overstating Revenue, Fined by CSRC
In March 2024, the China Securities Regulatory Commission (CSRC) concluded its investigation into Evergrande's financial reporting and found the company guilty of significantly overstating its revenue. Evergrande had inflated its 2019 revenue by 214 billion yuan (approximately $30 billion) and its 2020 revenue by nearly 80%, or 350 billion yuan ($48.6 billion). The CSRC also raised concerns about the company's bond issuances. As a result of these violations, Evergrande received a hefty fine of 4.2 billion yuan ($333 million) from the regulator.