AutoBeta(AutoBeta.net)03/21 Report--

At the opening of the Hong Kong stock market today, Evergrande, Evergrande Motor and Evergrande property, the three listed companies of Evergrande, issued an announcement on the Hong Kong Stock Exchange at the same time, temporarily suspending stock trading and serving as the middle index in the announcement. The reason for the suspension is that "waiting for our company to issue an announcement containing inside information". At the same time, Evergrande property-related bonds also stopped trading.

The short suspension sparked a lot of speculation, and all three stocks rose sharply in varying degrees on the previous trading day before the suspension, judging from the market performance. it may be caused by favorable news related to the above three companies at the same time. According to relevant media reports, China Evergrande will hold a global investor meeting this week to outline the framework of the restructuring. But even if the temporary suspension is related to restructuring, it may be some time before it is settled, as there are no other third-party listed companies following the suspension.

But no matter what happens next, it won't have a big impact on Evergrande's auto business. Evergrande Group's huge financial crisis was caused by its real estate owners. On December 3 last year, Evergrande suddenly announced that it might not be able to meet its guarantee obligations, announcing that it would not be able to meet a $260 million overseas guarantee obligation. The move immediately aroused a strong reaction from the Guangdong provincial government, and two hours after Evergrande's announcement, Evergrande Xu Jiayin was interviewed immediately. At the same time, the central bank, the Bancassurance Regulatory Commission and the Securities Regulatory Commission declared that Evergrande's risk stems from its own poor management and blind expansion, and the three red lines drawn by regulators on real estate eventually led to the storm. Judging from some of Evergrande's earlier decisions, Evergrande seems to have predicted this dilemma and stepped up its transformation.

At the Evergrande New Energy vehicle Strategic Partnership Summit in November 2019, Evergrande Board Chairman Xu Jiayin gave a clear timetable, saying that it would be unveiled in the first half of 2020 and mass production in 2021. At this summit, Xu Jiayin said, "Evergrande has nothing in the building car. What should we do if we want to change lanes and overtake and find an unusual way?" Buy, buy, buy and buy. " Evergrande's famous methodology of building cars: "Evergrande cars want to buy, cooperate, circle, big, good," came from Xu Jiayin's speech at this summit, when Evergrande planned six models for his automotive products at the same time, and further increased to nine.

Subsequently, Evergrande significantly accelerated the speed of "building cars". In June 2020, Evergrande Health spent nearly US $380 million to buy National Energy Electric vehicle Sweden Co., Ltd., and took full control of it. Three months later, Evergrande Health directly changed its name to Evergrande Automobile. Evergrande's share price rose directly from a few Hong Kong dollars to more than 60 Hong Kong dollars in response to the change in the concept. This operation led to complaints from some people in the automobile industry, "Evergrande has everything but no cars." Even Shen Hui, CEO of Weimar, joked on Weibo, "Evergrande needs cars." "

But the good times did not last long, the stock price was good for only a few months, and Evergrande's share price has fluctuated at more than HK $3 in recent months. Not only Evergrande Health changed its name to Evergrande Automobile, Evergrande also established the direction of comprehensive transformation into a new energy vehicle company within 10 years.

With three months to go before Xu Jiayin set the goal of achieving mass production by 2021, Evergrande itself is dealing with its own financial problems on the one hand and rushing towards this goal on the other. Seeing that there is no hope of achieving mass production, the goal of "working hard for three months and striving for the first car off the line" has been put forward, from mass production of nine planned models by the end of 2021 to concentrating all resources to strive for the offline production of Hengchi 5 model. Evergrande car construction progress is greatly reduced.

Last week, after several twists and turns, Hengchi 5 finally passed the second announcement of the new car of the Ministry of Industry and Information Technology, Evergrande finally got the first birth permit in the auto market, and Evergrande's situation is very different from when it was first set up with flag, whether it is the beginning or the end with Evergrande, or waiting for the "inside information" of Evergrande to be announced.

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