2017 China’s economic figures | The richest party member Xu Jiayin: his net worth increases by 600 million every day
Article guide: At the end of 2017, Xu Jiayin became the "richest man in both fields" in the latest 2017 Forbes China 400 Rich List and Hurun Rich List.
2017 was a milestone year for Chinese entrepreneurs.
This year, the central government issued a high-level document for the first time affirming the value and status of entrepreneurs, and spared no effort to create a good business environment for entrepreneurs, stimulate the driving force for entrepreneurship and innovation of various market players, and protect the entrepreneurial spirit.
Chinese entrepreneurs are experiencing an unprecedented opportunity.
This year, Ma Yun made money in his main business, while performing movies and singing songs in his side business, and he was unafraid to fight against most of China’s Internet circle alone; Liu Jintao issued the declaration of the fourth retail revolution – unbounded retail, promoting the upgrading of retail costs, efficiency and experience; Xu Jiayin became the "richest man in both categories" on the Forbes China 400 Rich List and the Hurun Rich List, with an average daily increase in assets of 600 million yuan; Dong Mingzhu’s Gree not only created the growth of sales profits, but also entered the era of intelligence and diversification; Guo Guangchang’s acquisitions at home and abroad did not stop, and Fosun became the second largest shareholder of Tsingtao Brewery…
In 2018, entering a new era, what new things will they do?
"China Economic Weekly" reporter, Yao Dongqin, reporting in Beijing
Editor: Jiang Lili
(This article was published in the first issue of China Economic Weekly in 2018)
Xu Jiayin, chairperson of Evergrande Group, if you want to give him a concise and clear description, it may be "two highs and one low": high awareness, high assets and long-term low profile. Xu Jiayin himself is not only the boss of Xu, but also the secretary of the party committee of Evergrande. On June 27, 2017, the Guangdong Provincial Non-Public Economic Organization Party Committee awarded Xu Jiayin and other 99 party members the title of "Guangdong Provincial Non-Public Economic Organization Party Member Paradigm". In the past 2017, it is more appropriate to think back on the ups and downs of several rich people who are often compared with Xu Jiayin.
At the end of 2017, Xu Jiayin became the "richest man in both categories" in the latest 2017 Forbes China 400 Rich List and Hurun Rich List. The two estimates of Xu Jiayin’s assets are not much different, both around 290 billion yuan. However, last year he ranked ninth and 10th in these two rankings respectively. Forbes announced that his net worth was only 65.66 billion yuan, and the Hurun Rich List announced a slightly higher one, only 78 billion yuan.
In just one year, Xu Jiayin’s net worth has increased by more than 210 billion yuan, which is equivalent to an average increase of 600 million yuan per day. In terms of the speed of making money in 2017, if Xu Jiayin is the second in China, no one dares to claim the first. This makes people wonder, where did Xu Jiayin’s money come from and where did he spend it?
It can be very high-profile, but it is low-key
In early 2017, Xu Jiayin announced that Evergrande Group had achieved sales of more than 370 billion yuan in 2016, an increase of 85% year-on-year, and total assets of more than 1 trillion yuan, "becoming the world’s largest real estate enterprise".
The miracle continues. According to the 2017 semi-annual report released by China Evergrande (3333.HK), the turnover in the first half of the year was 187.98 billion yuan, an increase of 114.8% year-on-year; the net profit was 23.13 billion yuan, an increase of 224% year-on-year; and the attributable shareholder profit was 18.83 billion yuan, an increase of 832% year-on-year. A number of profit indicators set the highest record since listing.
Since 2017, China Evergrande’s share price has risen from HK $4.98 to HK $32.5, and closed at HK $26.95 on December 29, 2017, a more than fourfold increase. Xu Jiayin’s net worth has also risen with the soaring share price.
The stock price can’t go up if you want, there are many factors behind it. And these factors also reflect Xu Jiayin’s high consciousness.
Before 2016, Evergrande also "raced the land", obtaining high land reserves while also harvesting high debt. In the context of the debt reduction and deleveraging policy in 2017, Xu Jiayin took advantage of the trend and immediately adjusted his strategy, proposing that Evergrande transform from "large-scale model" to "scale + efficiency".
On the evening of July 3, 2017, China Evergrande announced that as of June 30, the group had completed the redemption of all its perpetual bonds, and the high debt ratio would be significantly reduced. The next day, Evergrande’s share price rose by 12.13%.
On November 6, 2017, China Evergrande announced that it had signed capital increase agreements with six strategic investors, including Shandong Expressway Group, Suning Electric Appliance Group, and Shenzhen Zhengwei Group, for a total of 60 billion yuan. Evergrande’s net debt ratio continued to decline sharply. The next day, Evergrande’s share price rose 9.68%.
He could be a high-profile person, but he kept a low profile for a long time. In addition to attending the CPPCC conference as a member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference, Xu Jiayin rarely gave speeches in public and hardly arranged media interviews.
Money is well spent
He once wore a Hermès belt at a national two sessions, was surrounded by reporters, and took a photo of the "wind-like man". The meme about Xu Jiayin has been remembered by people for several years. Speaking of grievances, a Hermès belt is not only a drop in the bucket compared with its net worth of more than 210 billion yuan, but also completely worthless compared with the other big money Xu Jiayin spent.
Where did he spend his money? In terms of enterprises, Evergrande Group has in recent years chosen three major industries, finance, health, and cultural tourism, in addition to real estate, to carry out a diversified transformation.
Xu Jiayin spent a lot of money, Hengda most hope to be taken out to talk about the poverty reduction of Dafang County in Guizhou Province.
On December 19, 2015, Hengda Group signed an agreement with the People’s Government of Dafang County, planning to invest 3 billion yuan in poverty alleviation funds in Dafang County for free in three years, and realize the stable poverty reduction of the poor population 180,000 Dafang County by the end of 2018.
Xu Jiayin said, "Everything about Evergrande is given by the party, the state, and the society. Evergrande should assume the social responsibility of helping the rich first and then the rich."
Looking at the performance of Comrade Wang next door, it really makes people anxious. At almost the same time that Evergrande proposed to help Dafang County, Comrade Wang was still "buying, buying, buying" overseas. It was not until more than a year later that Lao Wang came to his senses and proposed "actively responding to the call of the state and deciding to place the main investment in China".
