AutoBeta(AutoBeta.net)08/05 Report--

On the morning of August 5, Evergrande announced on the Hong Kong Stock Exchange that the relevant local people's court held a hearing on the bankruptcy reorganization of the relevant subsidiary on August 2, 2024, and the relevant local people's court ordered the relevant subsidiary to enter the bankruptcy reorganization procedure. Earlier, Evergrande announced on July 28 that individual creditors of the relevant subsidiaries applied to the relevant local people's court on July 25 for bankruptcy restructuring of the relevant subsidiaries Evergrande New Energy vehicle (Guangdong) Co., Ltd. And Evergrande Intelligent Automobile (Guangdong) Co., Ltd.

According to public information, Hengda New Energy vehicle (Guangdong) Co., Ltd., formerly known as Hengda Neng New Energy vehicle (Guangdong) Co., Ltd., was established in January 2019 with a registered address at No. 41 Fangrong Road, Wanqingsha Town, Nansha District, Guangzhou City. the applicant is Shantou Chaoyang first Jian'an head Office. Evergrande Intelligent Automobile (Guangdong) Co., Ltd., formerly known as Evergrande Faraday Future Intelligent Automobile (Guangdong) Co., Ltd., was established in February 2018 with the registered address of No. 39 Fangrong Road, Wanqingsha Town, Nansha District, Guangzhou. Applicant Guangdong overseas Construction Consulting Co., Ltd., Guangzhou Shenlong Road Transportation Co., Ltd.

It is understood that the above two bankruptcy restructuring companies are the main companies of Evergrande's vehicle production base in Nansha, Guangzhou, which basically completed the main body construction in 2020, but has not been qualified for vehicle production and has not been put into operation. According to the SkyEye risk check system, at present, Evergrande New Energy vehicle (Guangdong) Co., Ltd. has 143 pieces of information about the person subject to execution, with a total amount of 1.557 billion yuan. Industry insiders said that the bankruptcy restructuring of the two subsidiaries will have a negative impact on Evergrande, which is already in deep trouble. Because in this way, it will cause a certain degree of pressure on Evergrande to attract investment to reinvigorate the company.

Evergrande, which has suffered a severe debt crisis, is trying to save itself by bringing in potential third-party investors. On May 26, Evergrande announced on the Hong Kong Stock Exchange that 29% of its shares would be acquired by potential buyers, who would provide credit to Evergrande to finance the company's continued operation and development of its electric vehicle business. However, on July 26, Evergrande announced again that discussions between potential sellers, potential buyers and the company were still ongoing, but there was no sale and purchase agreement between potential sellers and potential buyers, and no credit agreement between potential buyers and the company. Evergrande highlighted the uncertainty of the potential deal.

While waiting for the white knight, Evergrande kept getting all kinds of negative news. On May 22nd, Evergrande Motor was asked by the relevant local government to rescind the investment cooperation agreement and return a total of about 1.9 billion yuan in awards and subsidies. In addition, Evergrande New Energy vehicle (Tianjin) Co., Ltd., a subsidiary of Evergrande, received a notice from relevant departments and was ordered to stop producing and selling new energy passenger car products and carry out rectification.

As of December 31, 2023, the cumulative loss of Evergrande has reached 110.841 billion yuan, of which the loss in 2023 is about 12 billion yuan. By the end of 2023, Evergrande had total assets of 34.851 billion yuan and liabilities of 72.543 billion yuan, of which 26.484 billion yuan was borrowed; in the same period, Evergrande's cash and cash equivalents were 129 million yuan, which was far from enough to cover loans.

At present, Evergrande's latest share price is HK $0.305, with a market capitalization of only HK $3.3 billion. Since its inception, Evergrande has only one Hengchi 5 to achieve mass production, the cumulative delivery of only 1389 vehicles.

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