AutoBeta(AutoBeta.net)09/12 Report--

Heavenly Eye check information shows that on Sept. 10, Hengda Hengchi New Energy vehicle (Shanghai) Co., Ltd. added a piece of information about the person subject to execution, with the execution target of more than 140 million yuan, and the enforcement court is the Shanghai first Intermediate people's Court. As of press time, the total amount of execution of the company is 1.106 billion yuan.

Data show that Evergrande Hengchi New Energy vehicle (Shanghai) Co., Ltd. was established in May 2018, formerly known as Evergrande National Energy New Energy vehicle (Shanghai) Co., Ltd., with legal representative Jiang Xiaojun, registered capital of 3.01 billion yuan and paid-in capital of 2.52 billion yuan. According to the shareholding structure, the company is jointly owned by Evergrande New Energy Automobile Investment holding Group Co., Ltd. and Evergrande Ruibo New Energy Automotive Technology (Shenzhen) Co., Ltd., with the former holding 99.6678%.

Prior to this, on September 4, due to inability to repay due debts and obvious lack of solvency, Hengda Hengchi New Energy vehicle (Shanghai) Co., Ltd. was filed for bankruptcy review. The applicant was Zhengtai Electric Co., Ltd. the handling court is the Shanghai third Intermediate people's Court.

The following day, Evergrande announced that individual creditors of Evergrande New Energy vehicle (Shanghai) Co., Ltd., a subsidiary of China Evergrande New Energy Automobile Group Co., Ltd., applied to the relevant local people's court for bankruptcy liquidation of the relevant subsidiaries. It also indicated that the production and operation activities of the relevant subsidiaries were in a very low state at this stage, so the above matters did not have a significant impact on the company's production and operation activities, and at present, the Group was considering to defend the creditor's application.

This time the company has been executed for more than 140 million yuan, which is undoubtedly even worse for it. It should be noted that at present, the company is facing a number of judicial cases, there are a number of persons subject to execution, restrictions on consumption orders, people who break faith and the final case information. Among them, 45 cases were executed, the total amount of execution was 1.106 billion yuan, 53 cases of breach of faith, the proportion of non-performance was 100%, 49 cases were final cases, the total amount of execution was 201 million yuan, the total amount of non-performance was 199 million yuan, the proportion of non-performance was 99.4%.

Although Evergrande made it clear that Hengchi Shanghai did not have a significant impact on its production and business activities. However, the current Evergrande has long been in a dilemma, not only trapped in the capital chain for a long time, but also faced with a series of problems, such as factory shutdown, subsidiary bankruptcy restructuring, survival crisis and so on.

Prior to this, Evergrande New Energy vehicle (Guangdong) Co., Ltd. and Evergrande Intelligent Automobile (Guangdong) Co., Ltd. have entered the bankruptcy restructuring process, the two companies are the main companies of Evergrande's vehicle production base in Nansha, Guangzhou. According to the financial report, as of June 30, 2024, Evergrande's revenue was 38.377 million yuan, down 75.17% from the same period last year; gross profit was 2.433 million yuan, down 103.99% from the same period last year; and the net loss totaled 20.257 billion yuan, an increase of 194.73% over the same period last year. The loss for half a year far exceeded the 12 billion yuan for the whole of 2023. As of June 30, Evergrande had cash and cash equivalents of only 39 million yuan, total assets of 16.369 billion yuan and total liabilities of 74.35 billion yuan. At that time, Evergrande said in its financial report that its financial position was more tight than in 2023 and that it had to get a lot of financial support in the future. In order to reduce operating costs, Evergrande will take measures to arrange a holiday for some of its personnel. In addition, Tianjin manufacturing base, Shanghai manufacturing base and Guangzhou manufacturing base all carry out equipment maintenance and management according to the downtime management system and plan.

Since the cross-border car construction, Evergrande has only one production model of Evergrande 5. As a weight for Evergrande to turn upside down, Hengchi 5 has not performed well in the car market after its listing, with a total delivery of only about 1429 vehicles so far. Since the car was built, Evergrande has lost more than 110 billion yuan. In this context, if Evergrande, which is in deep financial difficulties, does not make substantial innovation, it will only become more and more difficult to reverse the market.

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