Evergrande is resuming payments on past-due debts and resuming halted real estate ventures. Now, the troubled Chinese developer is said to be shifting its attention away from houses and toward automobiles. According to Chinese official media, Chairperson Xu Jiayin, announced that the company hopes to make electric cars its major business within a decade.
Evergrande did not initially react to a CNN Business request for comment on Xu’s statements. As per the state-managed 21st Century Business Herald, the remarks were made during an internal session at Evergrande. They come as the firm has made some attempts to regain its footing.
In a statement issued, the business said it had resumed work on upwards of ten housing ventures in southern Guangdong province that would be delivered to customers “one by one.” According to Chinese official media, it also paid a significant interest payment previous last week, allowing it to avoid formal default.
According to official media, Xu ensured that the firm could get back on course by beginning work and sales, which he stated would enable Evergrande to reimburse suppliers, investors, and financial institutions.
The projects in Guangdong are likewise “in full swing,” according to the company’s statement. Construction on upwards of 40 housing ventures in Pearl River Delta region of Guangdong is “proceeding well,” according to a supplementary announcement on WeChat.
China’s second-largest developer is still dealing with major issues. It is suffocating under a mountain of debt totaling more than $300 billion, with a slew of looming interest payment deadlines.
It met last week’s target to pay $83.5 million in interest on the United States dollar bond, but only after a 30-day grace timeframe had expired. This Friday (October 29), another grace timeframe on an interest of $47.5 million payment expires.
Meanwhile, the company’s efforts to trade off some of its operations for cash have failed miserably. Evergrande announced last week that it had canceled a deal to sell a controlling interest in its property management company to Hopson, a rival Chinese developer. That transaction was worth $2.6 billion.
A shift to electric cars would be difficult as well. China Evergrande New Energy Vehicle Group, the entity in charge of that business section, has yet to supply a single-vehicle. As per the subsidiary’s preliminary figures from June, automobiles aren’t even the bulk of its business; health management leads sales. (Previously known as Evergrande Health Industry Group, the company was renamed last year to show its new focus.)