finaljeopardytoday| Evergrande Automobile: The total number of shares planned to be sold reaches 6.148 billion shares, involving capital shortages and production stagnation

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News summary

Evergrande Automobile announced that it plans to sell 31finaljeopardytoday45 million shares and 3.203 billion shares, accounting for approximately 58.5% of the issued shares, while seeking credit lines to support the electric vehicle business. The company is facing a shortage of funds and the Tianjin factory has been suspended. Previously, Evergrande was required to refund approximately 1.9 billion yuan in rewards and subsidies, a move that may have a significant impact on its financial situation.

finaljeopardytoday| Evergrande Automobile: The total number of shares planned to be sold reaches 6.148 billion shares, involving capital shortages and production stagnation

Newsletter text

[Evergrande Motor announced that it plans to sell nearly 60% of its shares and seek financial support]

Evergrande Motor recently announced on the Hong Kong Stock Exchange that it has signed a term letter with potential buyers and plans to sell a total of 6.348 billion shares, accounting for the company's issued shares.finaljeopardytoday58.5%. Of these, 3.145 billion shares will be acquired immediately, while another 3.203 billion shares will be subject to options for potential buyers.

The company also applied for resumption of trading of shares on the Stock Exchange from May 27. In addition, Evergrande revealed that potential buyers will provide credit to support the continued operation and development of its electric vehicle business. At present, Evergrande Motors is facing a shortage of funds and its Tianjin factory has suspended production.

Previously, Evergrande Automobile received a notice from the local administrative department requesting the cancellation of the investment cooperation agreement and the refund of approximately 1.9 billion yuan in rewards and subsidies. The company plans to send a letter to relevant departments to coordinate the matter, and acknowledges that if the notice is implemented, it will have a significant impact on the financial situation and operations.

The financial report shows that Evergrande Automobile has accumulated losses of more than 110 billion yuan since 2018, and the cumulative delivery volume is only 1389 units. In 2023, the company's total revenue will be 1.34 billion yuan, of which property sales revenue will account for more than 90%. The new energy vehicle business will not bring significant revenue.

Trading in Evergrande Automobile shares was suspended on May 17. Before the suspension, its share price rose by 53.23% to HK$0.38, with a total market value of approximately HK$4.121 billion.

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