Oftentimes Xu Jiayin, founder of Evergrande, proclaimed that he and Ding Yumei exemplified the ideal couple. However, recent documents from China Evergrande Group suggest their rapport may have altered.
In a stock offering, Ms. Ding Yumei was designated an “independent third party distinct from the company and its related entities.” Namely, in contrast to China Evergrande Group and Xu Jiayin, Ding Yumei stood as an autonomous outside party.
For Evergrande, which shoulders debts approaching 2 trillion yuan, this name change evidently implies something peculiar, particularly as rumors swirled of Evergrande petitioning relevant documents in the United States, triggering numerous queries.
Have they parted ways?
On August 14th, China Evergrande Group publicized entering a share subscription agreement and offset arrangement with five subscribers including China Evergrande Group, Xu Jiayin, Xinxin Co., Ding Yumei, and Haobang Co. Certain loans furnished to Evergrande Automobile are slated to transform into novel shares of Evergrande Automobile, namely a debt-to-equity swap.
Evergrande Motors will issue approximately 5.441 billion novel shares to the aforementioned five subscribers at a subscription cost of HK$3.84 per share, with an aggregate subscribed sum of approximately HK$20.895 billion.
Amongst them, China Evergrande Group, Xu Jiayin, Xinxin Co., Ding Yumei, and Haobang Co. subscribed for 4.178 billion shares, 521 million shares, 169 million shares, 417 million shares, and 156 million shares respectively, correlating to 16.045 billion Hong Kong dollars, 2 billion Hong Kong dollars, 650 million Hong Kong dollars, 1.6 billion Hong Kong dollars, 600 million Hong Kong dollars.
Notably, in this subscription announcement, Ms. Ding Yumei was characterized as an “independent third party distinct from the company and its related entities.”
As per public data, in 1982, subsequent to graduating from university, Xu Jiayin was designated to work in Henan Wuyang Iron and Steel Plant, where he met Ding Yumei, born in 1957, and they married the following year. Later, Xu Jiayin founded China Evergrande Group.
With Evergrande’s swift expansion, the riches of Xu Jiayin and Ding Yumei once burgeoned. On October 16th, 2019, the Hurun Research Institute publicized the “2019 Hurun Female Entrepreneur List,” and Ding Yumei ranked 26th with wealth of 17 billion yuan.
The company in the announcement refers to China Evergrande Group. Xu Jiayin stands as the founder, controlling shareholder and executive director of China Evergrande Group. Undoubtedly, Xu Jiayin represents a related party of China Evergrande Group.
Previously, in the 2021 mid-year report revealed by China Evergrande on September 27th, 2021, Ding Yumei’s identity in the announcement was “the spouse of Xu Jiayin, chairman of the board of directors.”
As per listing rules of the Hong Kong Stock Exchange, managers, chief executives or major shareholders of the listed issuer or any of its subsidiaries, supervisors of the Chinese issuer or any of its subsidiaries, et cetera, such persons and their affiliates are deemed connected parties of the company, amongst whom the spouse is the contact person of the aforementioned individual, namely the connected party of the company.
Hence, as per the aforementioned announcement, Ding Yumei is represented as an independent third party relative to China Evergrande Group and Xu Jiayin.
Owing to the altered address, some public views speculated Xu Jiayin and Ding Yumei had divorced.