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evergrande auto suspended trading.

on the morning of september 5, evergrande auto suspended trading.

before the trading was suspended, the company's stock price fell by more than 5%. as of press time, evergrande auto has not made any further announcement.

losses in the first half of the year exceeded 20.2 billion yuan

on august 27, evergrande auto issued a profit warning announcement. the announcement stated that evergrande auto group (china evergrande new energy vehicle group co., ltd., together with its subsidiaries) is expected to record a comprehensive net loss of approximately rmb 20.254 billion in the first half of 2024; in the first half of last year, it recorded a comprehensive net loss of approximately rmb 6.873 billion.

evergrande auto said that since china evergrande group was ordered to be liquidated by the hong kong high court on january 29, 2024, out of prudence, it increased the provision for impairment of accounts receivable of china evergrande group's subsidiaries and joint ventures. in the first half of this year, the full provision was about rmb 16.737 billion.

the subsidiary was filed for bankruptcy reorganization

on july 28, evergrande auto announced on the hong kong stock exchange that its subsidiaries, evergrande new energy automobile and evergrande smart automobile (the relevant subsidiaries), received a notice from the relevant local people's court on july 26. the main contents are hereby announced as follows: individual creditors of the relevant subsidiaries applied to the relevant local people's court for bankruptcy reorganization of the relevant subsidiaries on july 25. the above notice has a significant impact on the production and operation activities of the company and the relevant subsidiaries.

on the morning of august 5, evergrande auto announced on the hong kong stock exchange that the relevant local people's court held a hearing on the bankruptcy reorganization of relevant subsidiaries (evergrande new energy vehicle and evergrande smart vehicle) on august 2, 2024, and the relevant local people's court ruled that the relevant subsidiaries entered the bankruptcy reorganization procedure.

it is reported that evergrande new energy automobile (guangdong) co., ltd. and evergrande smart automobile (guangdong) co., ltd., which were applied for bankruptcy reorganization this time, are both indirectly wholly-owned enterprises of evergrande auto. their registered capitals are 5 billion yuan and 2.5 billion yuan respectively. their main businesses are sales and manufacturing of smart cars.

public information shows that the above two companies that were filed for bankruptcy reorganization are the main companies of evergrande auto’s complete vehicle production base located in nansha, guangzhou. the base basically completed the main construction in 2020, but has never obtained the qualification for complete vehicle production and has not started production and operation.

industry insiders said that the bankruptcy reorganization application of the above two subsidiaries will have a certain negative impact on evergrande auto, which is already in deep trouble, because this will put a certain pressure on evergrande auto's promotion of attracting investment to revitalize the company.

previously, evergrande auto announced that 29% of the company's shares would be acquired immediately. it is reported that the company's joint and individual liquidators, on behalf of china evergrande group (in liquidation), evergrande health industry group co., ltd., acelin global limited (collectively referred to as the potential sellers), entered into a term sheet with a third-party buyer (potential buyer) who is independent of the company and its affiliates, as far as the directors of the company know, understand and believe after making all reasonable inquiries. accordingly, the potential seller and the potential buyer may enter into a final sale and purchase agreement for the sale and purchase of the company's shares held by the potential seller. specifically, the potential seller holds a total of approximately 6.348 billion shares (accounting for approximately 58.5% of all issued shares) (potential shares to be sold). after the sale and purchase agreement is signed, approximately 3.145 billion shares to be sold (accounting for approximately 29% of all issued shares) will be acquired, and the remaining approximately 3.2 billion shares (accounting for approximately 29.5% of all issued shares) will become the subject of an option that the potential seller can exercise within a certain period after the date of the sale and purchase agreement.

the terms of the agreement also revealed that the potential buyer will provide the company with a loan to finance the group's continued operations and development of the group's electric vehicle business. evergrande auto admitted that the company is currently in serious financial shortage and the tianjin plant has not been in production since the beginning of this year.

as of december 31, 2023, evergrande auto's cumulative losses have reached 110.841 billion yuan, of which about 12 billion yuan was lost in 2023. as of the end of 2023, evergrande auto's total assets were 34.851 billion yuan, and its total liabilities were 72.543 billion yuan, of which 26.484 billion yuan was borrowed; during the same period, evergrande auto's cash and cash equivalents were 129 million yuan, far from enough to cover the borrowings.