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On the evening of November 19, Evergrande announced that it had signed a placing and subscription agreement with the placing agent on November 19, 2021 to place 900 million shares at HK $300 per share through the old-to-new approach. the total proceeds from the expected placement are about HK $2.7 billion. Evergrande said that the company plans to use the proceeds collected specifically for the research, development and manufacturing of the group's new energy vehicles, so as to lay the foundation for the smooth commissioning of Hengchi new energy vehicles. It is understood that the placing shares accounted for about 9.05% of the total issued shares on the date of the announcement and about 8.30% of the total number of expanded issued shares after the completion of the subscription.

It is worth noting that this is the second rights issue of Hengda Motor in nearly two weeks. Two weeks ago, Evergrande also announced that it signed a placing and subscription agreement with the placing agent on November 9 to place 175 million shares at HK $2.86 per share through an old-to-new approach, with a total expected proceeds of about HK $500m. Evergrande also said that the proceeds will be used specifically for the research, development and manufacture of the company's new energy vehicles.

Since October 11, Evergrande has announced a three-month battle to ensure that the first model, the Hengchi 5, goes offline at the Tianjin plant early next year. The car-building process of Evergrande is constantly advancing. In addition to active financing, Evergrande is also selling assets. Evergrande sold its electric transmission company e-Traction for 2 million euros (14.62 million yuan), compared with an earlier purchase of 500 million yuan, according to media reports.

In addition to the sale of e-Traction, according to media reports, Guoneng Electric vehicle Sweden Co., Ltd., a subsidiary of Evergrande Group, is also in talks with venture capital firms and industry partners in the United States and Europe to find a new owner. According to relevant data, Evergrande acquired a 51% stake in Guoneng in January 2019, and has since acquired the remaining stake in Guoneng twice. Guoneng has become a Swedish subsidiary of Evergrande New Energy Automobile Group.

On November 9, Evergrande declared its first model, the Hengchi 5 LX, in the new car announcement of the "Road Motor vehicle Manufacturing Enterprises and products announcement" issued by the Ministry of Industry and Information Technology. This also means that Hengchi 5 LX may be mass production. Now, in the face of the countdown to mass production of the first model in three months, Evergrande has to sell assets and actively raise funds to ensure mass production of the first model next year.

Since Evergrande announced its entry into the field of car manufacturing in 2019, it has solved the layout of the upstream and downstream industrial chains of automobiles, such as technology, qualifications, batteries, sales, talents, and so on. it has also obtained the core technologies in the fields of vehicle manufacturing, chassis structure, powertrain, hub motor, power battery and so on. According to the plan announced earlier, Evergrande will develop 14 new energy models and put them into mass production from the end of 2021 to the beginning of 2022, with production and sales of 1 million vehicles in 2025. And this fund-raising also means that Evergrande will speed up the process of self-hematopoiesis. Some industry insiders said: Evergrande should slowly raise money like start-ups, bringing in some real auto companies or some technology companies to work with it to cultivate new business. If it all depends on its own bleeding, it will be a big trouble later.

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