Xu Jiayin as the person to be executed! The amount involved is about 6 billion yuan

China Evergrande Group issued an inside information notice on the Hong Kong Stock Exchange on May 12, saying that China Evergrande Group has received an enforcement notice issued by the Guangzhou Intermediate People’s Court in Guangdong Province on the arbitration award of the Shenzhen International Arbitration Court. China Evergrande Group, a subsidiary of China Evergrande Group, namely Guangzhou Kailong Real Estate Co., Ltd. ("Guangzhou Kailong"), and China Evergrande Group’s controlling shareholder and executive director Xu Jiayin are the executors of the enforcement notice.

The arbitration relates to the capital increase and related agreements between Hexin Hengju (Shenzhen) Investment Holding Center (Limited Partnership) (the "Applicant") and the relevant respondent in December 2016 and November 2020 in relation to Evergrande Real Estate Group Co., Ltd. to increase capital by RMB 5 billion to Evergrande Real Estate to acquire approximately 1.6% equity interest in Evergrande Real Estate. Evergrande Real Estate terminates its restructuring plan for the Shenzhen Special Economic Zone Real Estate (Group) joint stock company, and the Applicant requires China Evergrande Group, Evergrande Real Estate, Guangzhou Kailong and Xu Jiayin to fulfill their repurchase commitments under the capital increase agreement and pay outstanding dividends, liquidated damages and proceeds.

According to the implementation notice, the matters to be executed are:

(1) Guangzhou Kailong and Xu Jiayin paid Hengda Real Estate about 204 million yuan for the difference in dividends in 2020, and assumed liquidated damages of about 51.53 million yuan;

(2) Xu Jiayin and China Evergrande Group repurchase the equity of Evergrande Real Estate held by the applicant for arbitration in RMB 5 billion;

(3) China Evergrande Group pays the arbitration applicant about RMB 770 million for holding Evergrande Real Estate from February 1, 2021 to the completion of the repurchase;

(4) China Evergrande Group, Guangzhou Kailong and Xu Jiayin pay approximately RMB 35.53 million in legal fees, arbitration fees and enforcement fees. Holders and potential investors of China Evergrande Group securities should exercise caution when dealing in China Evergrande Group securities.

Source | Observer Network

Original title: "Xu Jiayin into the person to be executed! The amount involved is about 6 billion yuan"

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