Source: Securities Times e-Company
On September 5th, $EVERG VEHICLE (00708.HK)$ suspended trading on the Hong Kong Stock Exchange, with a 5.38% decline before the suspension.
Everg vehicle has been applied for bankruptcy reorganization.
On September 4th, according to the information from Qichacha, Evergrande Everg New Energy Autos (Shanghai) Co., Ltd. added a bankruptcy review case. The applicant is Chint Electric Co., Ltd., and the handling court is Shanghai Third Intermediate People's Court.
Public information shows that Evergrande Everchi New Energy Automobile (Shanghai) Co., Ltd. was established in 2018 and is a member of the Evergrande New Energy Automobile Investment Holdings Group.
Recently, Evergrande Auto's mid-year report for 2024 showed that the net loss in the first half of 2024 further expanded to 20.256 billion yuan, exceeding the full year of the previous year; the liabilities amounted to as high as 74.35 billion yuan; and the cash and cash equivalents were only 39 million yuan. As of June 30, 2024, Evergrande Auto has delivered a total of 1429 new energy vehicles.
Evergrande Auto has been ordered to liquidate.
According to Evergrande Auto's announcement, the comprehensive net loss increased in the first half of this year, and Evergrande Auto Group was ordered to liquidate by the High Court of Hong Kong on January 29, 2024.
Out of prudence, Evergrande Auto Group has increased the provision for impairment of receivables from China Evergrande Group's subsidiaries and joint ventures. A full provision of approximately RMB 16.737 billion was made in the first half of this year.
Evergrande Vehicle stated in the announcement that the information in the announcement is based only on the preliminary review of the financial information obtained by the company's management at the present, and is not based on any data or information reviewed or reviewed by the company's auditors or audit committee. Shareholders and potential investors are requested to carefully read the interim performance announcement that is expected to be published at the end of August.
Currently, companies in the Evergrande group are all caught in a debt crisis. Evergrande's subsidiary, Evergrande Vehicle, also faces severe financial and operational pressures. On July 28th, Evergrande Vehicle issued a notice regarding its subsidiary's receipt of a notification, and there have been new developments.
Evergrande Auto stated that the relevant local people's court held a hearing on the bankruptcy reorganization of the relevant subsidiary companies on August 2. The relevant local people's court ruled that the relevant subsidiary companies should enter into bankruptcy reorganization proceedings.
According to the announcement, its subsidiary everg new energy vehicle (Guangdong) Co., Ltd. and everg smart automobile (Guangdong) Co., Ltd. received notices issued by the local people's court on July 26. The main contents of the announcement are as follows: certain creditors of the relevant subsidiary companies applied to the relevant local people's court for bankruptcy reorganization of the relevant subsidiary companies on July 25.
On August 26, Everg vehicle announced on the Hong Kong Stock Exchange: discussions on potential share transfer are still ongoing; potential sellers and potential buyers have not yet entered into a sale and purchase agreement, and potential buyers and the company have not yet entered into a credit agreement.
Before that, after Everg vehicle's investment from a strategic investor fell through, there is another new development in China Evergrande's litigation. On the evening of August 5, China Evergrande announced on the Hong Kong Stock Exchange, involving a large-scale financial recovery action.
The announcement shows that China Evergrande is seeking to recover approximately 6 billion US dollars in dividends and remuneration from seven defendants, including its executive director Xu Jiayin, former CEO Xia Haijun, former CFO Pan Darong, and Xu Jiayin's spouse or former spouse Ding Yumei, through legal means.
Editor/rice