Reuters
- The chairman of beleaguered Chinese real estate giant Evergrande Xu Jiayin sent a letter to 125,000 employees this week.
- He encouraged them to unite in the face of adversity and said the company would soon “walk out of the darkness.”
- The real-estate giant is estimated to be $300 billion in debt.
- See more stories on Insider’s business page.
The chairman of beleaguered Chinese real-estate giant Evergrande, Xu Jiayin, sent a letter to 125,000 employees on September 21, encouraging them to unite in the face of looming corporate troubles.
The real-estate company was once China’s top property developer but is now lurching on the brink of collapse. The Shenzhen-headquartered company has more than $305 billion in liabilities – more than any other company in the world, Markets Insider reported.
To date, Evergrande has developed 876 projects on 293 million square meters of land, per its 2019 annual report, with properties in every Chinese province.
However, after the Central Government in Beijing imposed new rules in January in a bid to control developers’ debt, Evergrande found itself unable to meet its interest payments.
The property developer’s impending collapse could have far-reaching implications, with regional and international markets reacting to what analysts are calling China’s “Lehman Brothers” moment. In response to the Evergrande crisis, the Dow has tanked more than 700 points as of September 20.
Insider obtained a copy of the letter Xu sent to his 123,276 employees via email on September 21. We have translated the letter into English from its original Chinese. Representatives for Xu and Evergrande did not immediately reply to Insider’s requests for comment.
Are you an Evergrande employee with a tip or story to share? Reach out to this reporter at cteh@insider.com.
Read Xu’s letter in full below:
“Dear department leaders and colleagues,
I am sending my sincerest well-wishes to you on the occasion of the Mid-Autumn Festival. May you and your families have a happy holiday, and stay safe and healthy. My sincerest regards to all our employees who are still fighting on the frontlines for our re-opening and resumption of production!
At the moment, our company has encountered an unprecedented and mammoth difficulty. As a whole, our staff has also experienced a challenge they have never seen the likes of. The members of our leadership team have surmounted every difficulty, making a brave stand for their teams, and working night and day. They are the pillars that protect and ensure our company’s stability. Here, I extend my deepest gratitude to all of you. I also thank your families, who have supported you and made silent sacrifices – they have my greatest respect.
I have always been proud of our company’s army of loyal, immensely hardworking staff, who persevere regardless of gains or losses. I firmly believe that Evergrande employees never yield, are never defeated, and only grow stronger in adversity. This is the greatest source of power that we have to overcome all difficulties and win this war.
I further believe that through the collective work of our leadership team and all our employees – if we continue to fight, and persevere through this struggle – we will walk out of the darkness soon.
If we do this, we’ll be able to push toward a complete reopening and fulfill our promise to guarantee that properties reach the hands of our buyers. We will also be able to account to home buyers, investors, our collaborators, and financial institutions, with a solid response – that we are responsible, and can shoulder this burden.
If we are united, we can move mountains! My colleagues, let’s unite and demonstrate courage in the face of a hundred adversities, and a tough, solid spirit. Let us fulfill with all our strength the responsibility we have to our society, and build a better future together!”
Powered by WPeMatico
