Evergrande Auto's Updates Acquisitions, Losses and Future Plans
TapTechNews May 26th, Evergrande Auto announced in the Hong Kong Stock Exchange that 3.145 billion potential shares to be sold (accounting for about 29.0% of all outstanding shares) will be immediately acquired, and 3.203 billion potential shares to be sold (accounting for about 29.5% of all outstanding shares) will become the subject of an exercisable option for the potential buyer within a certain period after the date of the trading agreement. The company will apply to the Stock Exchange for the resumption of trading of the company's shares on the Stock Exchange from 9:00 am on May 27, 2024.
On the evening of May 22nd, Evergrande Auto also announced that recently its subsidiary, Evergrande New Energy Automobile Investment Holding Group Co., Ltd. was required by the relevant local government to terminate the investment cooperation agreement and return the various bonuses and subsidies already issued, totaling about 1.9 billion yuan. And in April this year, Evergrande Auto announced that the strategic investment of NWTN Group fell through.
According to TapTechNews' inquiry and understanding, since its establishment in 2019, Evergrande Auto has accumulated losses of more than 100 billion yuan, and as of the end of last year, the cumulative number of delivered vehicles exceeded 1389 units. The total revenue of Evergrande Auto last year was 1.34 billion yuan, but the main revenue came from property sales; the annual loss was as high as 11.995 billion yuan, which was slightly narrower than the previous year.
Previously, Evergrande Auto admitted to facing financial difficulties. The company said it will go all out to introduce strategic investors and actively raise funds to maintain the group's survival and future development plans; and whether the company can continue to operate continuously will depend on the group's ability to generate sufficient financing and operating cash flow through the following aspects, and be able to successfully implement and complete the business and operational restructuring plan and financing plan. Evergrande Auto said that in the case of the introduction of strategic investors and the availability of funds, it will plan to continue to promote the development, verification and mass production of the annual model and modified model of Hengchi 5, as well as Hengchi 6 and Hengchi 7. At the same time, it will also continue to promote the research and development of new platforms and new models according to market demand.