Evergrande Auto's Potential Share Transfer and Financial Situation
TapTechNews June 27th news, on the evening of June 26th, Evergrande Auto announced in an announcement that the discussion on potential share transfer is still ongoing, but the sales and purchase agreement and the credit agreement have not been signed yet.
Evergrande Auto also stated in the announcement that due to the potential transaction awaiting further due diligence and the materialization after the signing of the sales and purchase agreement and the credit agreement, and subject to the terms and conditions of such agreements, so the potential transaction may or may not proceed. The company strongly advises shareholders and potential investors to purchase stocks carefully.
On May 26th, Evergrande Auto disclosed an announcement of a potential share sale plan and applied to the Stock Exchange for the resumption of trading on May 27th. The announcement at that time showed that the company's joint and several liquidators on behalf of China Evergrande Group (in liquidation), Evergrande Health Industry Group Limited, AcelinGlobalLimited (collectively referred to as potential sellers) entered into a term sheet with a third-party buyer (potential buyer) who, after all reasonable inquiries made by the company's directors, was known, aware and believed to be independent of the company and its affiliates. Accordingly, the potential sellers and the potential buyer may enter into a final sales and purchase agreement regarding the sale of the company's shares held by the potential sellers.
TapTechNews noted that the term agreement also disclosed that the potential buyer will provide a loan to the company to fund the group's continued operation and development of the group's electric vehicle business. Evergrande Auto frankly admitted that the company currently has a serious shortage of funds, and the Tianjin factory has no longer produced since the beginning of this year.
According to the 2023 financial report disclosed by Evergrande Auto on March 27th, as of December 31st, 2023, Evergrande Auto has accumulated losses of up to 110.841 billion yuan, of which the loss in 2023 is about 12 billion yuan. As of the end of 2023, Evergrande Auto's total assets are 34.851 billion yuan, and the total liabilities are 72.543 billion yuan, among which the borrowings are 26.484 billion yuan; at the same time, Evergrande Auto's cash and cash equivalents are 129 million yuan, far from enough to cover the borrowings.