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Evergrande operates new Tycoons for EV unit worth more than Ford
(Bloomberg) – Chinese billionaire Hui Ka Yan has overtaken his poker buddies to fund the expansion of his debt-laden empire. The chairman of the China Evergrande group has called on new tycoons linked to his other real estate firms to raise money. billion dollars for electricity. vehicle startup that is now worth more than Ford Motor Co. – all without any mass production of cars. Three of the six strategic investors of China Evergrande New Energy Vehicle Group Ltd.’s $ 3.4 billion stock offering . in January were the main investors in a property -services unit that went public two months earlier. Another funder helped fund an attempted listing by the parent company in mainland China. Hui also turned to the wife of longtime supporter Joseph Lau, who is part of the “Big Two Club” of tycoons who play the poker game of the same name. New backers highlight Hui’s ability to expand its network of rich knowledge to raise funds. for his empire as the government clamps down on real estate companies by limiting their borrowing to avoid a crash. “When cash is tight, it pays to have Hui Ka Yan’s network of wealthy friends,” said Brock Silvers, Hong Kong-based chief investment officer. of Kaiyuan Capital. “Hui’s fundraising methods may raise questions about the true depth of market support for Evergrande companies.” Although less well known than Hui’s familiar network of supporters, the new financiers have helped him join the global electric vehicle craze. Evergrande’s EV unit is now a $ 61 billion monster, twice as much as Nissan Motor Co., although it has not officially launched mass production. Each investor has agreed to a lock-in period of 12 months for the subscribed stock, which shows its confidence in the electric vehicle sector, Evergrande said in a response to Bloomberg. The profits will be used to build automobile production bases and for research and development, the company added. from Hong Kong. “Since the alliance is often strategic and long-term, it dramatically reduces cash flow stress for the business.” Here is a look at the latest supporters of Hui, the 14th richest person in China with a net worth of around $ 23.5 billion, according to Bloomberg Billionaire Index 1. Chen Hua: The Chairman of the Kingkey Group has personally invested 5 billion yuan ($ 770 million) in starting EV via a unit, according to a file. Kingkey was also a major investor in Evergrande’s real estate services IPO in December, buying HK $ 236 million ($ 30 million), according to a list of conditions viewed by Bloomberg. Chen is a real estate industry veteran, hauling cement to construction sites in his country. early 1920s. He founded his own company in 1994, completing historic buildings like the 98-story KK100 tower in the high-tech hub of Shenzhen. Kingkey made a name for himself in 2002 after inviting the former president American Bill Clinton speaking at one of his residential projects. , and later, former British Prime Ministers John Major and Gordon Brown participated in corporate events. Wong Kwong MiuWong, born in 1969 in the southern province of Guangdong and now a Hong Kong passport holder, founded Shenzhen-based developer Centralcon Group in 1993 and controls Shenzhen Centralcon Investment Holding Co. around 15 billion yuan. , or about 2% of that of Evergrande. Most of its residential portfolio is in the Greater Bay Area which includes Hong Kong. Like Hui, Wong was a member of the Policy Advisory Committee, which helps advise the government on policy. Wong has personally invested 5 billion yuan in the manufacturer of electric vehicles through a unit. The developer’s majority shareholder was a major backer of Evergrande’s real estate services unit in December with a HK $ 200 million investment, deposits and term sheets seen by Bloomberg. next: Musk’s latest challenger is a politically savvy Chinese tycoon3. Liu Ming Hui, the founding chairman of China Gas Holdings Ltd., 57, has gone through a rare transformation – from an entrepreneur against grain to an established executive, to a criminal suspect and back again. Liu was a government official responsible for attracting foreign investment to the region before joining the state-owned energy supplier. After a year-long detention on what turned out to be false allegations of embezzlement, Liu returned to China Gas. His inspiration in prison included transforming the army of company meter readers into door-to-door vendors, selling everything from insurance to food delivery. Chinese executive forged during Jailhouse TormentLiu personally invested 3 billion yuan in the EV startup. A subsidiary of China Gas, Hai Xia Finance was also a major investor in Evergrande’s service unit in December, according to the documents filed. cooperation, including the installation of gas pipelines, the supply of natural gas and the provision of heating services for Evergrande projects. “China Gas believes that working with Evergrande, a leading developer in China, will help its business,” the company spokesperson wrote. Wang ZhongmingWang heads the Shenzhen Greenwoods Investment Group, with businesses ranging from construction and agriculture to hospitality and finance, according to a file. Greenwoods’ 80 billion yuan in assets include the mineral water, grain and oil companies that were sold by Evergrande, its website says. Greenwoods invested 5 billion yuan in the electric vehicle maker. Another company founded by Wang, Shenzhen Jiahui Investment Group, controlled two strategic investors in Evergrande’s onshore division known as Hengda Real Estate, the unit that had planned to go public in China and that then triggered liquidity. afraid when he failed to do so. Shenzhen Huajian Holdings invested 5 billion yuan in Hengda in December 2016 as a first round investor, while Shenzhen Jiancheng Investment added 3.5 billion yuan in May 2017 as a second round participant. Chan Hoi-wanChan, 41, former journalist and now CEO of Chinese Estates Holdings Ltd., has long had ties to Hui through her billionaire husband Joseph Lau. Chan said she regularly has video calls with Hui and other business partners. The Hong Kong developer has paid a price for its investments in Evergrande. Chinese Estates said last month it expected to record an unrealized loss of HK $ 5.8 billion on its stake in Evergrande. Stakes in the Shenzhen-based company, whose shares have fallen 37% in the past two years, represent 41% of the total assets of Chinese Estates, which has not deterred Chan from being the largest lessor. of funds in the pre-listing financing cycle of Evergrande’s property management arm last year, subscribing to 5% of the shares. Chan also invested HK $ 3 billion in the EV unit. The latest bets have done better for Chan than Evergrande himself. The real estate services unit’s shares have jumped 70% since the IPO in December, while the EV branch has nearly doubled since it focused on autos last August. Kingkey, Centralcon , Chinese Estates and Greenwoods did not respond to requests for comment. For Hui, the support of Chan and the other tycoons could pave the way for building his first line of cars. “The recent equity fundraising and self-financing of the EV company should be sufficient for its development in 2021 and 2022.” said Raymond Cheng, real estate analyst at CGS-CIMB Securities. (Updates with more comments in the eighth paragraph.) For more articles like this, please visit us at bloomberg.com. © 2021 Bloomberg LP
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