Month: April 2020

Predict. Do not extrapolate.

China Evergrande Group – Are the Management’s Goals Achievable?

Following the 2019 financial report, China Evergrande announced the new goals of slashing debt by CNY 150bn a year through 2022, increasing sales to CNY 800bn in 2020 and CNY 1tn by 2022, and at the same time shrinking the company’s land reserve. Can these goals be achievable? If so, under what conditions? Are they…
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China Evergrande 2019 Results – Reverse Analysis and Forecasts

Content: Financing and operating implications – Much higher debt borrowing and raw inventory buying than 2018 – Modest after-sale at zero margin – What has not changed Projections if the company would maintain the 2019 conditions – New conditions in 2019 – Main UNchanged conditions – Projection results summary