On September 26, Evergrande Automobile announced on the Hong Kong Stock Exchange that after careful consideration, the company and Haitong Securities Co., Ltd. agreed to terminate the listing counseling agreement and will report to the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission.Therefore, the proposed issuance of RMB shares will no longer proceed.
In addition, on the evening of September 24, Evergrande Automobile announced on the Hong Kong Stock Exchange that, in view of the Group’s liquidity issues, the Group’s Evergrande Health Valley and new energy vehicle living space facilities caused delays in payment to suppliers and The project payment situation led to the suspension of some related projects. As of the date of this announcement, the Group has not made significant progress in resuming work for some projects.
The company is still in contact with different potential strategic investors, introducing new investors to the group, and is still in the process of due diligence and negotiation as of the date of this announcement. The Group is also actively discussing with potential investors to sell some of the Group’s health-care valley projects and overseas assets to improve the overall efficiency of the Group and supplement working capital. As of the date of this announcement, the Group has not signed any legally binding agreement with investors, and it is uncertain whether the aforementioned potential sale can be realized. If necessary, the Company will make further announcements in accordance with the Listing Rules in due course.
If the above-mentioned introduction of strategic investment and/or the sale of potential assets does not achieve any progress in the short term, it will result in the Group’s lack of further capital investment, which is expected to affect the daily operations of the Group and make the payment of wages of the Group’s employees and/or other The expenditure payment situation continues to deteriorate, and at the same time it affects the development of new energy vehicles, which has a significant negative impact on the mass production of the Group’s new energy vehicles.
Source of cover image: Photo by reporter Huang Xinxu (data map)
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