◎ Reporter Yu Liyan
All the way rough Evergrande Auto Welcome the news of equity acquisition. On the evening of May 26, Evergrande Auto announced at the Hong Kong Stock Exchange that 3.145 billion potential shares for sale (accounting for about 29.0% of all issued shares) of the company would be acquired immediately, and 3.203 billion potential shares for sale (accounting for about 29.5% of all issued shares) would become the subject of a exercisable option of the potential buyer within a certain period after the date of the purchase and sale agreement. The company applied to the Hong Kong Stock Exchange for resumption of trading of its shares from 9:00 a.m. on May 27.
The potential buyer intends to acquire the equity of Evergrande Auto
Evergrande Auto announced that the company has known that there are potential buyers and shareholders China Evergrande The Group (in liquidation), Evergrande Health Industry Group Co., Ltd. and Acelin Global Limited (collectively referred to as the "potential seller") entered into a term sheet to accept the relevant shares of Evergrande Auto held by the above shareholders.
Evergrande Automobile said that the company has known a credit agreement mentioned in the term sheet, according to which, the potential buyer (or the other party designated by the buyer with the company's consent) will provide the company with a credit amount to finance the company's continuous operation and development of electric vehicle business. At present, Evergrande Automobile is seriously short of funds, and Tianjin Plant has stopped production since the beginning of this year. At present, the company's Tianjin factory has not resumed production.
The reporter of Shanghai Securities News noticed that since the suspension was announced on May 17, there have been many negative rumors and news related to Evergrande Auto. On the evening of May 22, Evergrande Auto announced that its subsidiary, Evergrande New Energy Auto Investment Holding Group Co., Ltd., had recently received a letter from the relevant local administrative department requesting the cancellation of a series of investment cooperation agreements previously signed, and the return of various awards and subsidies that had been issued totalled about 1.9 billion yuan.
It is announced that since April 29, 2019, Evergrande New Energy Vehicle Investment Holding Group Co., Ltd. and relevant subsidiaries have signed a number of investment cooperation agreements with relevant local administrative departments. However, due to the Company's failure to perform its contractual obligations as agreed in the agreement, the relevant local administrative department proposed to terminate the agreement and request to return the rewards and subsidies that have been issued in accordance with the provisions of relevant laws and regulations.
In the face of this emergency, Evergrande Motors said that the relevant subsidiaries planned to send a letter to the relevant local administrative departments for coordination. However, the Company also acknowledges that if the above letter is finally executed, it will have a significant adverse impact on the financial condition and operation of the Company or relevant subsidiaries.
According to the financial report of Evergrande Auto, the company has disclosed that it has mainly built production bases in Tianjin, Shanghai and Guangzhou. After signing the cooperation agreement with the local government in 2019, the data of government subsidies of Evergrande Auto rose significantly, and then returned to zero again after the subsequent debt risk broke out. According to the data, in the "deferred income" part of government subsidies in the annual report over the years, the data of government subsidies in 2018, 2019, 2020, 2021 and 2022 are respectively: 0 yuan, 1.363 billion yuan, 1.194 billion yuan, 409 million yuan and 0 yuan.
The latest financial report shows that the annual revenue of Evergrande Auto in 2023 will be 1.34 billion yuan, with a total net loss of 11.995 billion yuan, a year-on-year decrease of 56.64%. As of December 31, 2023, Evergrande has delivered more than 1389 vehicles in total.
Evergrande's car manufacturing business is in crisis
In 2019, Evergrande's Hengchi automobile brand was born, and it also participated in the 2021 Shanghai Auto Show with a high profile, and launched nine pure electric models at one go. Its booth area exceeded that of the same world-class first-line automobile enterprises. At that time, Liu Yongzhuo, president of Hengchi Automobile, said that Hengchi Automobile would start trial production in the fourth quarter of 2021 and deliver in a large scale in 2022. However, it is not until April 2022 that 3 Hengchi 5 real cars will be unveiled. Six months later, Hengchi 5 was finally delivered. However, Hengchi soon fell into quality doubt. Since then, due to lack of funds, Hengchi Automobile's Tianjin factory has suspended the production of Hengchi 5.
However, China Evergrande, which is betting on the new energy vehicle race track, is still trying to help its Evergrande Auto, which is also listed on the Hong Kong Stock Exchange, get out of trouble after falling into the liquidity crisis. At the end of May 2023, leaders of Tianjin Binhai New Area led a team to investigate Hengchi Automobile Tianjin Plant. At that time, Hengchi Automobile introduced that Hengchi Tianjin Plant has now fully resumed production. Liu Yongzhuo said that the company will spare no effort to accelerate the production and delivery of Hengchi 5, and continue to promote the R&D and production of subsequent models, so as to make the enterprise bigger and stronger.
But the good times are not long. On January 8, 2024, Evergrande Auto announced that Liu Yongzhuo, the executive director of the company, had been detained according to law for being suspected of committing crimes. In addition, Evergrande Hengchi New Energy Vehicle (Shanghai) Co., Ltd. added three pieces of information about the person to be executed, with a total target of 98 million yuan.
On August 14, 2023, Evergrande Auto announced that it had obtained the first strategic investment of 500 million dollars from Newton Group (NWTN. US), a listed company held by the United Arab Emirates National Sovereign Fund, and another 600 million yuan of transitional funds would be received in succession five working days after the announcement. The proposed transaction between the two parties is expected to be completed in the fourth quarter of 2023. After the completion of the transaction, Newton Group's shareholding in Evergrande Auto accounted for 27.5% of the total issued ordinary shares after the expansion.
At that time, the market believed that Newton Investment would become Evergrande's "life-saving money". However, Evergrande Auto announced at the Hong Kong Stock Exchange on the evening of April 5, 2024 that the strategic investment agreement signed with Newton Group was terminated. The original transaction and the revised terms of the related debt to equity swap failed to achieve further development. An auto industry analyst said that Evergrande's car manufacturing business has been in crisis.
When the stock market recovers, open an account first! Intelligent fixed investment, condition sheet, individual stock radar... for you>>
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Hao Xinyu
