Xu Jiayin’s ＂spouse＂ Ding Yumei holds a Canadian passport, and his second son is deeply involved in many affairs of Evergrande

　　Xu Jiayin, chairperson of China Evergrande’s board of directors, was ordered into compulsory action on September 28 on suspicion of committing a crime, but the market is worried about whether his "spouse", Ding Yumei, has separated Xu’s assets due to the "technical divorce" dispute.

　　The Daily Economic News reporter learned from people familiar with the matter that before the announcement of Xu Jiayin’s coercive measures, his second son, Peter Xu, had been taken away, and Ding Yumei was already "abroad."

　　Every time the reporter inquired about the information of the Hong Kong Company Registry, it was found that Ding Yumei held a Canadian passport. On the evening of September 29, every time the reporter consulted the service hotline of the National Immigration Bureau with citizenship, he learned that if he held a Canadian passport, he must be naturalized first, but whether he had cancelled his Chinese nationality or household registration, he needed to go to the specific relevant departments to inquire.

　　The financial report shows that in 2021, China Evergrande’s total assets are about 2.10 trillion yuan, while the total liabilities are 2.58 trillion yuan, and the net assets are about negative 473.10 billion yuan; in 2022, China Evergrande’s total assets are about 1.84 trillion yuan, the total liabilities are about 2.45 trillion yuan, and the net assets are about negative 599.10 billion yuan.

　　The second son is deeply involved in many affairs of Evergrande

　　Xu Tenghe has been involved in many Hengda affairs in recent years, all of which belong to management positions. He served as the chairperson of Hengda Group’s Pearl River Delta Company for many years and was also responsible for important work of Hengda Wealth.

　　On September 16, the WeChat official account of "Shenzhen Nanshan Public Security" released a case report. Recently, the public security organs have taken criminal compulsory measures against Du and other suspected criminals of Evergrande Financial Wealth Management (Shenzhen) Co., Ltd. "At present, the case is under further investigation."

　　On August 31, Hengda Wealth’s official Weibo announced that because the company’s asset disposal progress was not as expected and no asset disposal funds were obtained, the company could not carry out this month’s redemption, and the follow-up redemption arrangement company would make a separate announcement.

　　A number of former Hengda employees told reporters that during Xu Tenghe’s tenure as chairperson of Hengda Group’s Pearl River Delta Company, the Pearl River Delta Company could acquire land nationwide without regional restrictions, but his personal performance was not particularly outstanding.

　　When Xu Tenghe presided over Hengda Group’s Pearl River Delta company, he did a representative project in Jiaxing, and his marketing strategy was to continue to burn money to invest in advertising. "After three years of opening, 30% will be reduced by mid-2021, and then it will be transferred to various intermediaries for underwriting."

　　In December 2021, according to overseas media reports, Xu Tenghe was selling a $12.50 million luxury house on Sunset Avenue in Los Angeles. At the end of 2022, Xu Jiayin also listed his London super luxury house Rutland Gate 2-8a, worth about 2 billion yuan.

　　Xu Jiayin was last seen in public on July 4 this year, when he chaired the management meeting of Evergrande Football Club. Since 2023, Xu Jiayin’s two appearances and speeches have been through Evergrande Football.

　　"Spouse" Ding Yumei holds a Canadian passport

　　On August 14, Hengda Motor’s investment announcement sparked public speculation about Xu Jiayin’s marital status. Xu Jiayin’s public spouse, Ding Yumei, was stated in the agreement as a "third party independent of the company and its connected persons". She also holds about 5.99% of China Evergrande’s total issued shares.

　　This was once speculated by the market that Xu Jiayin and his wife had "technical divorce".

　　Every time the reporter found that in Hengda Property’s 2022 annual report, which was delayed in June this year, Ding Yumei was still referred to as "Mrs. Xu", and her identity as a holder of interests was expressed as "spousal rights", acting in concert with Xu Jiayin and XinXin (BVI) Limited (Xinxin Company).

　　But in Evergrande Property’s 2023 interim report, there is no word for "Mrs. Xu" or "Ding Yumei".

　　Through divorce, can Ding Yumei be financially separated from Xu Jiayin to avoid debt and other issues?

　　Previously on August 16, Yang Dengji, a lawyer at Guangdong Hebang Law Firm, said in an interview with each reporter that according to Article 1064 of the Civil Code, the debts borne by the joint signatures of the husband and wife or the subsequent ratification of one of the husband and wife, as well as the debts borne by one of the husband and wife for the daily needs of the family in their own name during the existence of the marriage relationship, belong to the joint debts of the husband and wife. The creditor can prove that the debts are used for the common life of the husband and wife, joint production and operation, or based on the common will of the husband and wife. Therefore, Ding Yumei is not only Xu Jiayin’s spouse or "former spouse", but also his right-hand man on the road to entrepreneurship. Even if they dissolve the marriage relationship, they cannot rule out the joint debts of husband and wife that they jointly produce and operate during the existence of the marriage relationship. It is difficult to completely isolate risks and avoid debts.

　　In 1982, Xu Jiayin was assigned to work at the Wuyang Iron and Steel Factory in Henan after graduating from university, where he met Ding Yumei, and the two married the following year, according to the Daily Economic News. For many years, Ding Yumei has almost never been seen in the open market. In December 2018, Xu Jiayin and Ding Yumei returned to their hometown in Henan Province on a high-profile, returning to Jutaigang Village, Gaoxian Township, Taikang County. This was Ding Yumei’s first public appearance. The reporter checked the Hong Kong Companies Registry system and found that the shareholder of Haobang is Canon Enterprise Co., Ltd. registered in the British Virgin Island (BVI).

　　According to reports, Haobang held Block E, No. 10 Buli Road on the Peak, which was mortgaged, and Canon Enterprises Limited and Xin Rong Limited (registered in the Cayman Islands) were additional guarantors of the loan. At that time, Xu Jiayin was frequently rumored to sell or mortgage his personal assets, and three properties in Buli Road were mortgaged to China Construction Bank (Asia) and finance company Orix Asia Capital Co., Ltd.

　　The reporter checked the information of the Hong Kong Companies Registry and found that Xin Rong Limited controlled Tianxin Holdings Co., Ltd., while "Ding Yumei" served as a shareholder in Tianxin Holdings Co., Ltd. The relevant registration information shows that "Ding Yumei" holds a Canadian passport.

　　It is worth noting that in 2021, Xinxin (BVI) Limited, Ding Yumei and Xu Jiayin sold a total of 1.20 billion shares of China Evergrande on November 25 of that year, with an average price of HK $2.23 per share, cashing out about HK $2.676 billion.

　　In the first half of this year, Hengda realized revenue of 128.18 billion yuan, gross profit of 9.80 billion yuan, operating loss of 17.38 billion yuan during the period, non-operating loss (including litigation, land recovery, equity disposal and asset appraisal impairment and other losses) 15.03 billion yuan, income tax expenses 6.84 billion yuan, net loss of 39.25 billion yuan.