Evergrande RV Treasure and Evergrande Ice Spring are both set to be spun off and listed

Author | Lin Cheng

Editor | Zhang Xiaoling

Evergrande Group's actions to spin off new businesses are swift.

The latest is Evergrande RV Treasure. Evergrande Group's Vice Chairman and President Xia Haijun stated at the 2020 annual performance meeting that RV Treasure has evolved from Hengfangtong over five years and has become the world's largest online and offline trading platform for real estate and automobiles, with plans to go public by the end of this year or early next year.

Xia Haijun introduced that RV Treasure currently has 21.29 million members as nationwide agents and 43,000 stores, expecting that by the end of 2021, the transaction volume through RV Treasure will reach 2.2 trillion, further approaching Beike.

On March 29, RV Treasure introduced 17 strategic investors, including the family of Cheng Ka-shun, founder of Chow Tai Fook, Zhao Linghuan, President of Hony Capital, Ye Delin, Chairman of New Pearl, Xia Haijun, Vice Chairman and CEO of Evergrande, as well as CITIC Capital, Zhongrong International, Dasheng Asset Management, etc. The total investment cost is HKD 16.35 billion, and the investors will collectively hold 10% equity in RV Treasure.

Regarding the introduction of strategic investors, Evergrande's management stated that the aim is to achieve larger-scale mergers and acquisitions this year, and that they are prepared for listing conditions after a year of preparation.

To this end, Evergrande RV Treasure has established a performance guarantee clause. Evergrande stated in the announcement that it hopes RV Treasure will complete the qualifications for listing within 12 months after the equity delivery between the group and the investors; otherwise, each investor has the right to require the relevant obligors (including China Evergrande Group, etc.) to repurchase the shares held by the investors in RV Treasure at the original cost paid by the investors plus a 15% premium.

What is Xu Jiayin planning to benchmark with the repurchase of Evergrande Spring?

In addition to Evergrande RV Treasure, it is surprising that Xu Jiayin, Chairman of China Evergrande, has repurchased Evergrande Spring, which he previously sold, and Evergrande now holds 49% equity in Evergrande Spring.

Xu Jiayin stated that Evergrande's diversified development aims to achieve a fully closed industrial chain for the group's clothing, food, housing, transportation, health care, tourism, and entertainment, which is why the group has repurchased 49% equity in Evergrande Spring (including Evergrande Grain and Oil).

Evergrande stated, "After more than ten years of exploration and development in diversification, we have formed a diversified layout with eight major industries advancing together, completing the transformation ahead of others," which includes Evergrande Real Estate, Evergrande Automobile, Evergrande Property, Evergrande Network, RV Treasure, Evergrande Children's World, Health Industry, and Evergrande Spring.

Except for the real estate and property sectors, Evergrande's other sectors have their own benchmark platforms. Evergrande Network benchmarks Netflix, RV Treasure benchmarks Beike, and Evergrande Children's World benchmarks Disney.

Some investors can't help but wonder, what will Evergrande Spring benchmark? Nongfu Spring or Jinlongyu?

According to Evergrande's plan, Evergrande Spring is committed to accurately providing customers with health food that meets their needs, creating a new platform for consumer services.

Xu Jiayin emphasized at the performance meeting that Evergrande Spring plans to repackage and plan for its listing next.

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