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According to the announcement on the website of the Hong Kong Judiciary, Top Shine Global Limited of Intershore Consult (Samoa) Limited has filed a winding-up petition with China Evergrande Group in the High Court of Hong Kong, case No. HCCW 220 Universe 2022. The hearing time is scheduled for August 31, 2022 at 9:30

What is a winding-up petition? If the company has excessive liabilities, its creditors or members of the company may file a winding-up petition with the court. After the winding-up petition is presented, the court will hear the winding-up petition. If the winding-up application is approved, the court will issue a compulsory winding-up order to order the company to sell its assets to repay its debts, distribute the remaining property, and so on. Generally speaking, the winding-up petition can be divided into two cases, one is voluntary winding-up, that is, the company does not think it is necessary to continue to operate, liquidate assets and repay debts. The other is compulsory winding-up, usually because the company's funds are unable to repay the debt, the creditor presents a winding-up petition to the court, and after the court hears and applies for approval, a compulsory winding-up order is finally issued. Obviously, Evergrande belongs to the second category.

In response to the applied winding-up petition, China Evergrande issued a notice saying that "strongly opposing the winding-up petition will not affect the restructuring plan". China Evergrande said in the announcement that "Top Shine Global Limited of Intershore Consult (Samoa) Limited (petitioner) filed a winding-up petition against China Evergrande in the High Court of the Hong Kong Special Administrative region on June 24, 2022, involving a financial obligation of HK $862.5 million". Evergrande further said that "China Evergrande will strongly oppose the petition and expects that the petition will not affect China Evergrande's restructuring plan or timetable; China Evergrande has been actively communicating with creditors to promote overseas debt restructuring. The preliminary plan for overseas debt restructuring is expected to be announced by the end of July." However, Evergrande also reminded: "if China Evergrande is eventually wound up as a result of the petition, the transfer of shares made on or after the commencement date will be null and void without an order recognized by the High Court".

Shawn, executive director of Evergrande, said the petition for winding-up was filed by a strategic investor in RV Bao, a housing trading platform owned by Evergrande, whose debt accounts for less than 1 per cent of the group's total overseas debt. Previously, Evergrande had communicated with it for several rounds, but the other party still filed a winding-up petition against China Evergrande in the Hong Kong High Court on June 24. At present, Evergrande has defaulted on its overseas debt, and the company will treat all creditors fairly according to law, actively seek settlement with the above-mentioned strategic investors in accordance with international practice and market rules, and consider the debt as a whole under the framework of overseas debt restructuring in accordance with the law. At the same time, Sean stressed that at present, the operation of China Evergrande's board of directors, risk resolution committee and management teams at all levels are not affected, and all parties are sparing no effort to stabilize production operations. and continue to actively communicate with creditors at home and abroad on overseas debt restructuring.

Some legal experts said that the submission of a winding-up petition by creditors does not mean that the company is bankrupt. After receiving the winding-up petition, the company can oppose the winding-up in accordance with the law, which has no substantial or significant impact on the company's financial and operating conditions. At the same time, the Hong Kong court will hear the winding-up petition and decide whether to make a final winding-up order, a process that could take months or more. The management of the company may continue to perform its duties until the court appoints a liquidator or provisional liquidator.

So far, Evergrande has officially defaulted on 13 dollar bonds totaling about $19.285 billion. On June 20, China Evergrande announced that the company is actively promoting the restructuring work, and the company is expected to announce the preliminary restructuring plan before the end of July.

Shares were suspended, debt defaulted, car construction stalled, and Evergrande fell into an endless cycle. In the context of huge debts, Evergrande still adheres to the "car-building dream" and seeks more possibilities for the mass production of Evergrande cars by selling its assets, and even "guarantees cars and abandons houses". It has formulated an industrial plan of "realizing the industrial transformation from real estate to new energy vehicles in the next 10 years, and forming new energy vehicles as the main and real estate as the auxiliary". In other words, Evergrande's transformation from real estate to new energy vehicles is a helpless move, because the success and failure of Evergrande is the key to Evergrande's turnaround. Only Evergrande's success can save Evergrande from fire and water.

On March 22, Evergrande New Energy Automobile Group held a mobilization meeting entitled "working hard for three months to achieve Hengchi 5 production". Xu Jiayin, chairman of the board of directors of Evergrande, said at the meeting: "the Automobile Group must work hard day and night, work hard for three months, and must achieve Hengchi 5 production on June 22, so as to lay a solid foundation for the healthy and sustainable development of Evergrande." On May 18, Hengchi's official Wechat official account issued a "statement": affected by the epidemic, the original mass production time of Hengchi 5 was adjusted to September 20, 2022, and the pre-sale work is in progress.

With the "big dry March and March", Evergrande car "Savior" time is running out. Evergrande's highest share price soared to HK $72.4 in 2021, surpassing BYD as the country's largest carmaker by market capitalization. Now it has fallen to HK $3.2 and has been suspended for three months. At present, the biggest problem hindering the resumption of Evergrande's license is that Evergrande's financial performance and audit cannot be completed, and the continuous suspension may trigger the accelerated repayment of convertible bonds, thus aggravating the liquidity pressure on the enterprise. and financial pressure will further affect the progress of car construction.

As the first production car of Evergrande, Hengchi 5 plays the role of "savior". At present, Evergrande is making great efforts to ensure mass production of new cars, but there is more pressure after mass production. As a luxurious cross-border car brand, Hengchi Automobile in order to match its market positioning means that channel construction and marketing expenses are also a lot of expenditure. If Hengchi 5 wants to achieve mass production, it must invest a lot of money. What the whole Evergrande department lacks most is funds. What's more difficult is that if the car can't be built all the time, it will further aggravate the financial crisis.

Of course, although the mass production of Hengchi 5 has been postponed to September, it does not affect the tour of Hengchi 5 at all. On April 21, three Hengchi 5 showed up at Guangzhou Evergrande Center. Xu Jiayin and his management team experienced the appearance and interior of the vehicle. In order to test the intelligence of the car machine, Xu Jiayin also ordered a song "waiting" through a voice assistant. And after the experience repeatedly praised: beautiful! It's beautiful!

At the same time, Hengchi 5 is speeding up its entry into the Evergrande community, causing many owners to watch. At present, signs such as "Hengchi sales Center" and "Hengchi Exhibition experience Center" have been put up in some cities such as Evergrande District and Evergrande Plaza Commercial Street, and the first batch of 15 key cities showing the layout of the experience center are also the areas with dense branches of Evergrande property projects.

"it is not easy to build a car itself, and it is even more difficult to build a car across the border. This is a matter of both skill and money, and timing and luck also account for three points. " Three years ago, Li Bin, founder of Xilai, said frankly, "Don't build a car without 20 billion." by 2022, the threshold will become "you can't do it without 40 billion."

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