AutoBeta(AutoBeta.net)08/07 Report--

On the evening of August 5, Evergrande announced on the Hong Kong Stock Exchange that Liu Yongzhao and Qin Liyong were removed from their executive directorships, effective immediately. In addition, Evergrande announced in the announcement that Cai Weikang was appointed as executive director, and Liang Jiajin and Wang Kenan were appointed as independent non-executive directors, effective immediately.

Subsequently, Evergrande issued another announcement on the Hong Kong Stock Exchange, announcing the latest list of board members and the positions held by relevant board members on the board committee. According to the announcement, the members of the board of directors of China Evergrande New Energy Automobile Group Co., Ltd are as follows: executive Director: Mr. Shawn (Chairman); Mr. Cai Weikang. Independent non-executive directors: Mr. Zhou Chengyan; Mr. Xie Wu; Mr. Liang Jiajin; Mr. Wang Kenan.

There was a sign that Liu Yongzhao and Qin Liyong were removed from executive directorships. On June 28, Evergrande issued an announcement announcing the results of the vote at the annual general meeting. Among them, the motion "re-election of Mr. Shawn as executive director" received 99.99% of the vote, while "re-election of Mr. Xie Wu as independent non-executive director" was passed by unanimous vote. According to the announcement, as at the date of this announcement, the executive directors of Evergrande are Mr. Shawn, Mr. Liu Yongzhao and Mr. Qin Liyong; the independent non-executive directors of Evergrande are Mr. Zhou Chengyan and Mr. Xie Wu. However, the day before that, the announcement involved a "request for notice" requiring the removal of executive directors Liu Yongzhao and Qin Liyong and any positions held by them in the company with immediate effect.

Liu Yongzhao can be said to be a capable Xu Jiayin, but also a key figure in Evergrande. At the beginning of the listing of Hengchi 5, Liu Yongzhao publicized in a high profile: "Hengchi big sale has become a foregone conclusion." However, it backfired. By the end of last year, Evergrande had produced only 1700 Hengchi 5 cars, while the Tianjin plant had stopped producing since the beginning of this year. The industry believes that the ouster of Evergrande Liu Yongzhao and Qin Liyong reflects the financial pressure and survival crisis that Evergrande is facing.

On the morning of August 5, Evergrande issued a notice that the relevant local people's court held a hearing on the bankruptcy reorganization of the relevant subsidiaries on August 2, 2024 and ruled that the relevant subsidiaries entered the bankruptcy reorganization proceedings. 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. The above two bankruptcy restructuring companies are the core subsidiaries of Evergrande and the main body of Evergrande's vehicle production base in Nansha, Guangzhou.

At present, Evergrande is in a very difficult situation. Evergrande announced two months ago that some of its shares would be acquired by a "mystery buyer". However, two months have passed, but Evergrande has been slow to identify the specific acquirer, which has also made the outside world confused about the follow-up development of Evergrande.

In fact, Evergrande has been trapped in the capital chain for a long time. According to financial data, Evergrande's total revenue in 2023 was 1.34 billion yuan, of which more than 1.1 billion yuan came from property sales, resulting in a full-year loss of 11.995 billion yuan. By the end of December 2023, Evergrande had total assets of 34.851 billion yuan and total liabilities of 72.543 billion yuan, which was seriously insolvent and faced with great financial pressure. At present, Evergrande, which is mired in the debt crisis, is on the brink of bankruptcy, and there is still a lot of uncertainty about when it will usher in the "White Knight". In this regard, industry insiders believe that even if some shares of Evergrande are acquired, it is difficult for Evergrande to return to the mainstream of the market.

According to the latest report from "IT House", Evergrande employees interviewed said that since July 29, including production, research and development, quality inspection, administrative personnel and other positions have been fired, only the employee knows dozens of people have been affected. At the same time, some employees with a contract period of more than one year are dismissed by the company by default. The report also pointed out that after Evergrande stopped production at the end of last year, most of its employees were required to rest at home and pay social security without wages, and the number of employees plummeted from a peak of more than 6000 to less than 500.

As of press time, Evergrande officials have not responded to the news.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat