May 22kingbillycasino, China Evergrande New Energy Vehicle Group Co., Ltd.(Evergrande Automobilekingbillycasino，00708kingbillycasino.HK) announced that it had received requests from the local administrative department to terminate the agreement and return rewards and subsidies.
The announcement stated that Evergrande New Energy Vehicle Investment Holding Group Co., Ltd., a subsidiary of Evergrande Motors, recently received a letter issued by relevant local administrative departments, the main content being that the relevant subsidiaries will have a relationship with relevant local administrative departments starting from April 29, 2019. Signed a series of investment cooperation agreements.
The letter requires that because the company failed to perform its contractual obligations in accordance with the relevant terms of the relevant agreement, the relevant local administrative department plans to require the relevant subsidiaries to terminate the relevant agreement in accordance with the Civil Code of the People's Republic of China and other Chinese laws and regulations; and return the various awards and subsidies issued to the relevant local administrative department totaling approximately RMB 1.9 billion, and the relevant subsidiaries shall bear joint liability to each other.
Evergrande Automobile said that currently, relevant subsidiaries plan to send letters to relevant local administrative departments for coordination. If finally implemented, the requirements of the above letter will have a material adverse impact on the financial status and operations of the Company or each relevant subsidiary.
Previously, on May 17, Evergrande Automobile once surged by 70%. After that, Evergrande announced that it would suspend trading on the Stock Exchange. When the suspension was suspended, Evergrande Automobile's share price rose by 53kingbillycasino.23%。Evergrande Automobile announced this time that it will continue to suspend trading until further notice.
The annual report shows that Evergrande New Energy Vehicle (Tianjin) Co., Ltd. officially launched mass production in September 2022. As of December 31, 2023, a total of 1700 Hengchi 5 vehicles had been produced, which did not meet relevant requirements. Evergrande Motor stated in its annual report that recently due to financial reasons, the group arranged for some personnel to take vacations and suspended production at the Tianjin factory. The Group will make every effort to attract strategic investors to actively raise funds to maintain the Group's survival and future development plans.
Evergrande Automobile's revenue in 2023 will be 1.34 billion yuan, a year-on-year increase of 900.04%. The increase in revenue was mainly due to the increase in sales of automobiles and auto parts from 60.63 million yuan as of 2022 to 146 million yuan in the reporting period; revenue from property sales increased by 1.136 billion yuan. The gross loss was 51 million yuan, and the total net loss was 11.995 billion yuan, a year-on-year decrease of 56.64%. Among them, the business that was terminated (i.e. divested of real estate projects) suffered a loss of 1.061 billion yuan, non-operating losses such as asset disposal and asset impairment were 6.384 billion yuan, and operating losses were 4.55 billion yuan, with a total loss of approximately 37.692 billion yuan.
As of December 31, 2023, Evergrande Automobile incurred a loss of 11.995 billion yuan (a loss of 27.664 billion yuan in 2022), and the cumulative losses and shareholder losses were 110.841 billion yuan (a loss of 98.906 billion yuan in 2022) and 37.693 billion yuan (a loss of 68.651 billion yuan in 2022) respectively.
As of May 17, Evergrande Motor's share price was HK$0.38/share.