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Interface News reporter | Liu Jiaxin
After the suspension of trading was announced not long ago, Evergrande ushered in a stake acquisition.CrashgameonlineAccording to the news, Evergrande resumed trading on the Hong Kong Stock Exchange at 9: 00 a.m. on May 27, and its share price soared by more than 110% at the beginning of trading.
Earlier, on May 17, Evergrande announced a temporary suspension of its license, saying that it had yet to release inside information. As soon as this announcement was made, Evergrande soared 70% in intraday trading, and "inside news" aroused widespread concern in the market.
On May 26, Evergrande announced on the Hong Kong Stock Exchange that 29% of its shares were about to be acquired by potential buyers, and Evergrande would resume trading the next day.
According to the announcement, Evergrande learned on May 16 that shareholders China Evergrande Group (in liquidation), Evergrande Health Industry Group Co., Ltd., Acelin Global Limited, entered into terms and conditions with an independent third party buyer, and the potential buyer (or the other party designated with the company's consent) would provide credit to the company to finance the company's continued operation and development of its electric vehicle business.
After reaching the sale and purchase agreement and subject to its terms and conditions, the initial plan is to acquire 31 immediatelyCrashgameonline. 4.5 billion potentially unsold shares of Evergrande, which account for about 29% of the company's issued shares. Meanwhile, there are another 32Crashgameonline.300 million potential shares for sale, accounting for 29.5% of the company's issued shares, will be the subject of an option for potential buyers for a certain period of time after the date of the sale and purchase agreement.
The stake acquisition is good news for Evergrande, which is facing a severe shortage of funds, and its plant in Tianjin has not yet resumed production.
In April this year, Newton Group's strategic investment of 500 million US dollars, which is regarded as Evergrande's "life-saving money", failed, and external support confirmed the exit.
According to its annual report, Evergrande's total revenue in 2023 was 1.34 billion yuan, but most of its income came from property sales, with an annual loss of 11.995 billion yuan. By the end of last year, Evergrande had total auto assets of 34.851 billion yuan and total liabilities of 72.543 billion yuan, making it seriously insolvent.
Since its establishment, Evergrande has launched three models: Hengchi 5, Hengchi 6 and Hengchi 7. Hengchi 5 has been mass-produced and delivered, and the latter two are still in the stage of development and verification. By the end of last year, Evergrande had a cumulative loss of 110.841 billion yuan, while Hengchi delivered only 1389 vehicles.
During the period from its suspension to the resumption of trading, Evergrande also had negative news. Recently, its subsidiary Evergrande New Energy Automobile Investment holding Group Co., Ltd. has been asked by the relevant local government to rescind the investment cooperation agreement and return a total of about 1.9 billion yuan in awards and subsidies, it said in a notice on May 22. The cooperation agreement was signed in 2019, but the cooperation was terminated because Evergrande failed to fulfill its contractual obligations in accordance with the relevant terms of the agreement.