Evergrande Group Photo: VCG

Debt-plagued real estate giant China Evergrande Group pledged to deliver 600,000 new homes and 70 million square meters of construction site, which is equivalent to nearly 50 percent of all Evergrande's guaranteed delivery projects within the calendar year according to media reports. 

In a recent meeting with investors, company founder Xu Jiayin said that, with more than 50 billion yuan in pre-sale deposits, Evergrande is able to initiate the full resumption of constructions after the Chinese New Year. Special teams have also been set up across China to ensure the new homes can be delivered on time.

Limited cash flow has constrained delivery of Evergrande projects, pushing the company for a debt restructuring to cope with the unprecedented financial crisis, and, the situation has gradually eased as the resumption work is underway.

This came as Evergrande delivered 37,899 new homes to the buyers in December with plans to settle 30,000 more homes in January, the group said in an announcement on its official WeChat account on January 17.

The steady progress of the resumption of construction work helped the group achieve a major breakthrough in home sales, with one of its new projects in Haikou, south China's Hainan Province, selling out within five seconds of launch.

Previously, many suppliers had stopped working with Evergrande due to issues including unpaid invoices. 

Xu said at the meeting that the company will use cash payment to reduce the capital cost in the case of previous commercial bill payment, and at the same time, they will increase the amount of qualified suppliers, while optimizing supply divisions.

In addition to guaranteeing homes delivery, Xu said that they must do everything possible to resume normal business operations. Only by realizing full and normal construction can the market and customers' confidence in Evergrande be restored, Xu said.

In responding to the concerns over asset disposal at below cost, Xu noted that "the company's assets cannot be sold at a low price at any time, and attention must be paid to prevent loopholes in the process of asset disposal."