Evergrande New Energy Vehicle in Trouble
TapTechNews June 3rd news, Evergrande New Energy Vehicle Investment Holding Group Co., Ltd. was recently included in the list of business exceptions by the Nansha District Market Supervision Administration of Guangzhou due to being unable to contact through the registered residence or business premises.
The company was established in January 2019, and the legal representative is Liu Weisheng, with a registered capital of 3.5 billion US dollars. The scope of business is to make investments legally in the fields allowed for foreign investment by the state. Shareholder information shows that the company is jointly held by Evergrande New Energy Vehicle Holding Co., Ltd. Information shows that the company has more than 110 pieces of information on the person subject to execution, and the total amount of execution exceeds 2.1 billion US dollars. In addition, there are also many information on the person subject to dishonesty, restrictions on consumption orders and end-of-case information.
On May 26th, Evergrande Automobile announced that its 3.145 billion potential shares for sale (accounting for about 29% of all outstanding shares) will be immediately acquired, and at the same time 3.203 billion potential shares for sale (accounting for about 29.5% of all outstanding shares) will become the subject of an exercisable option of the potential buyer within a certain period after the date of the trading agreement.
TapTechNews noted that the financial report released by Evergrande Automobile shows that in the 1.34 billion yuan in revenue of Evergrande Automobile in 2023, less than 11% came from automobiles and auto parts. And the 11.995 billion yuan net loss of Evergrande Automobile last year even reached 9 times the revenue of the same period. As of the end of 2023, the total assets of Evergrande Automobile are 34.851 billion yuan, but the total liabilities of Evergrande Automobile in the same period are as high as 72.543 billion yuan, and its cash and cash equivalents are only 129 million yuan. Evergrande Automobile still has a serious shortage of funds, and the Tianjin factory has not resumed production so far.