Hui Ka Yang, The Chairman Of Evergrande, Paid $8 Billion In Cash While He Was In Debt.

Key Sentence:

• With the chaos surrounding debt settlement fears for Chinese entrepreneur Evergrande Group, it’s good to be chairman.

Although Evergrande Group’s 80 percent decline so far this year has resulted in a reduction in the wealth of its billionaire founder and chairman. Hui Ka Yang, it will remain incredibly wealthy even as the company is under a debt burden of US$300 billion or more. The dollar is falling and nearing a series of bond payments that rocked the economy. Globally this week.

Estimating Hui’s current net worth at $11.5 billion, Forbes estimates that $8 billion in cash dividends will be paid to Hui. After Evergrande went public on the Hong Kong Stock Exchange in 2009. According to its annual report, the entrepreneur’s total debt has increased every year since its issuance. But it pays dividends every year except in 2016.

Most of the dividends go to one person The Chairman Of Evergrande- Hui owns 10.2 billion shares of Evergrande, a 77% stake in the company. Evergrande paid 1.13 yuan per share ($0.17) for 2017 and 1,419 yuan per share ($0.22) for 2018, generating more than four years of earnings in those two years alone. Billions of dollars for Hui.

(Hong Kong dividends are not taxed.) During that period, The Chairman Of Evergrande debt rose from $179 billion to $243 billion. The burden is more on the creditors. When creditors find out that the funds will be used to fund dividends. They have to be more careful,” said the firm’s financial advisor Robert Willians.

“In such cases, creditors will often ask for guarantees from significant shareholders

Evergrande was founded 25 years ago in Guangzhou and, under Hui. He has grown to become the second-largest sales company in China after Country Garden Holdings. However, fears of rising debt and bankruptcy interest have resulted in a sharp decline in stocks this year. Developers still owe about 1.6 million unfinished apartments to buyers who have made their first payment.

“Whether Hui Kai Yang will stay or not is very difficult to say. New York-based researcher and expert on China Market affairs. It will not be saved. ” Hui, now 63, grew up poor and studied at the Wuhan University of Science and Technology.

From 1982 he worked as an engineer in a steel mill before founding Evergrande and buying real estate at bargain prices. His net worth stands at $36.2 billion on the 2019 Forbes Billionaires List and still $27.7 billion as of March 5 on this year’s list, making him the 53rd richest person in the world.