The shape of Evergrande Ocean Flower Island is like flowers blooming at sea, with a total area of about 7.8 square kilometers, equivalent to the size of more than a dozen Forbidden City. The largest island No. 1 is in the shape of five petals, Island No. 2 and Island No. 3 are shaped like leaves, and the bridge into the sea is like the stem of a flower, connecting this sea kingdom with the city land.
This is the first cultural tourism project of Evergrande Group. Evergrande's promotional materials show that on the first day of the new year in 2012, when Xu Jiayin, the chairman of the board of directors, could not sleep at night, he collected leaves, flowers and other materials, repeatedly conceived of the sea, and drew a sketch of Haihua Island. Haihua Island relies entirely on reclamation to form offshore islands. According to the plan, Island 1 is equipped with theme parks, shopping malls, museums, hotels, hot springs and other leisure and resort facilities, Island 2 is mainly for civilian residences and holiday apartments, and Island 3 is covered with private beach villas.
In 2009, Xu Jiayin launched the Ocean Flower Island project. At that time, a document from the Danzhou Municipal Government predicted that the construction of the Haihua Island project would greatly promote the development of tourism in Danzhou and even the entire Hainan Province. The construction of the project would add more than 100,000 jobs. The passenger flow is expected to reach 2 million per year, and the presence of related industries will play a huge role in stabilizing the long-term tax revenue of Danzhou. Evergrande plans to invest a total of 160 billion yuan to build Haihua Island into the world's largest, highest-grade and most complete "top tourist destination that people in the world yearn for." Hierarchical needs, "to create a never-ending feast at sea."
Similar to the business model of other cultural and tourism projects, Haihua Island has invested such a large amount of capital that it wants to use the real estate sales of Island 2 and 3 as the engine to bring about a quick return of funds. Li Jiahang (pseudonym), a former employee, introduced that the ticket revenue of the tourism project on Island 1 and the rental of shops are thin, and the payment cycle is long.
In November 2015, the advertisements of Haihua Island were continuously put on 6 channels of CCTV, on average dozens of times a day. At the opening of Haihua Island Real Estate, more than 100,000 people came to see houses. In just 10 days, nearly 30,000 houses were sold, and the transaction amount reached 12.2 billion. On average, one house was sold every 3.2 seconds, refreshing the world. (6.870, 0.01, 0.15%) The record for a property sale.
But then, Haihua Island encountered a crisis because it touched the red line of ecological protection. From August 10 to September 10, 2017, the Central Environmental Protection Inspectorate conducted the first round of inspections in Hainan Province, criticizing the Danzhou government and the marine department for the “breakdown into parts” of the Henghai Flower Island for illegal approval. Law of the People's Republic of China on the Administration of the Use of Sea Areas, reclamation projects over 50 hectares must be submitted to the State Council for approval. At that time, the Danzhou government and the marine department divided the reclamation project into 36 sub-projects with an area of less than 27 hectares.
In September 2018, the Danzhou Environmental Protection Bureau imposed a fine of 50,000 yuan on Evergrande because Evergrande started construction of 39 buildings on Island 2 without handling the EIA documents.
In 2020, Hainan Province ordered Danzhou City to implement the rectification of 39 residential buildings on Haihua Island. In May 2020, Danzhou City issued a shutdown order for 39 residential buildings and withdrew their pre-sale licenses, and the project was completely suspended for sale.
In early January 2022, an administrative penalty decision issued by the Comprehensive Administrative Law Enforcement Bureau of Danzhou City, Hainan Province showed that the planning licenses for 39 buildings that were illegally obtained for the project had been revoked, and the relevant developers were ordered to demolish within 10 days. On January 4, Evergrande applied for administrative reconsideration, which is still being processed, and the building has not been demolished.
39 illegal buildings to be demolished and surrounding wasteland