9/11/2017-7

The largest round of equity financing Everbright third round of capital increase 60 billion

[Hong Kong Business Daily] Reporter Ye Rui Rui: China Evergrande (3333) subsidiary Kelon Real Estate, Evergrande Real Estate, controlling shareholder Xu Jiayin, and investors entered into the third round of capital increase agreement, investors will Hengda Real Estate Capital increase of 60 billion yuan (RMB, same below). After three rounds of capital increase, investors invested RMB130 billion in capital to Evergrande Real Estate and completed the largest equity financing in the history of domestic housing enterprises.

The Group released a notice yesterday that Evergrande Real Estate Co., Ltd. introduced six strategic investors in the third round of capital increase, including Shandong Expressway, Suning Appliance, Shenzhen Zhengwei, Jiayu Investment, Guangzhou Yihe and Sichuan Dingxiang, a total of 60 billion yuan Evergrande real estate by about 14.11% stake in the enlarged stake, higher than Evergrande announced earlier 30 billion to 50 billion yuan replenishment scale. Shandong Expressway previously invested 3 billion yuan, the additional 200 billion yuan; and Jia Yu had invested 2 billion yuan, the additional 5 billion yuan.

After the completion of the three rounds of capital increase, investors will invest an aggregate capital of RMB130 billion in Evergrande Real Estate to acquire approximately 36.54% of the enlarged share capital of Evergrande Real Estate. Kelon Properties will hold approximately 63.46% interest in Evergrande Real Estate and Heng Large real estate will continue to be a subsidiary of Evergrande Group.

Three-year total net profit of 165 billion

Kailong Real Estate and Evergrande Real Estate agreed to give the third round of investors a performance commitment. Net profit (after deducting non-recurring gains and losses) for the three fiscal years from 2018 to 2020 shall not be less than 50 billion yuan, 55 billion yuan and 600 yuan respectively A total of 165 billion yuan in three years, representing a promised profit of 88.8 billion yuan for the three years from 2017 to 2019 last year, nearly doubling. In addition, the estimated contractual sales of Evergrande Real Estate in the financial years 2018, 2019 and 2020 are 5,000 billion, 5,800 billion and 6,200 billion respectively. The Group undertakes that during the performance commitment period, Evergrande Real Estate will distribute at least 68% of its net profit to its shareholders for each financial year.

According to Hengda Real Estate announced last year’s profit commitment, this year’s net profit target of 24.3 billion, and China Evergrande mid-year report shows that the Group achieved net profit of over 231 billion in the first half, but considering its as a parent company also contains some still in Diversified industries during the cultivation period mean that Hengda Real Estate, which has the strongest profitability in China Evergrande, has completed its full-year profit commitment in only half a year.

As of the end of last year, China Evergrande has sold 192.4 billion yuan of unsettled income. In the first 10 months of this year, China Evergrande has realized sales of 422.3 billion yuan. This year, sales exceeded 500 billion yuan with no suspense. If the interim report of 14.5% of net profit Estimated rate, has locked 100 billion yuan of net profit, accounting for 165 billion yuan commitment profit about Liucheng. In addition, the current top 20 Hong Kong stocks listed companies average dynamic PE about 15 times, even in accordance with China Everbright 50 billion yuan promise next year, a conservative estimate of market value will reach 750 billion yuan, while China Evergrande’s current market capitalization of only 315 billion yuan , The stock price has a huge space to rise in the future.