haktuts2019freespins| Violent pull exceeds 70%! Evergrande Automobile suddenly suspended trading!
editor 2024-05-17 15:57:43 Nature 27
Evergrande suddenly suspended its license after a big rise.
On May 17th, the Hong Kong Stock Exchange announced that Evergrande had temporarily suspended trading from 10:56 today.
Before Evergrande's suspension, the company's share price soared by more than 70% at one point, and rose 53% before the suspension.Haktuts2019freespins.23%, with a current market capitalization of HK $4.121 billion.
So far, Evergrande has not disclosed the suspension of its license.Haktuts2019freespinsThe reason. A Chinese reporter from the brokerage noted that Evergrande disclosed in April that the "life-saving money" intended to introduce a $500m investment from Newton Group in the Middle East had been officially terminated. Evergrande lost about 12 billion yuan in 2023, with a total debt of 72.5 billion yuan.
Evergrande car license suspension for a short time
On May 17, Hong Kong stock "Evergrande" shares strengthened, Evergrande property rose more than 23%, Evergrande Motor once rose more than 70%, at the same time, other auto stocks Wuling Motor and Xiaopeng Motor also rose.
Evergrande opened trading at 0.285 Hong Kong dollars per share today, up 53.23 per cent before announcing a brief suspension at 10:56, data showed.
It is understood that Evergrande Group directly holds a 58.54% stake in Evergrande Automobile. Evergrande Motor, formerly known as Evergrande Health, officially changed its name to Evergrande Automobile in August 2020 with the strategic adjustment of Evergrande Group. In April 2023, Evergrande completely spun off its 47 internal health and health programs, focusing on the field of car manufacturing.
Evergrande Automobile 2023 Annual report revealed that by the end of 2023, the Tianjin manufacturing base produced Hengchi 5 according to market demand and mass production in September 2022, with a total of 1700 cars off the production line, which did not meet the relevant requirements. By the end of 2023, more than 1389 vehicles have been delivered.
At the same time, Evergrande said that due to financial reasons, Evergrande arranged for some staff to have a holiday, and production at the Tianjin plant was suspended.
Last year, it lost 12 billion yuan and owed 72.5 billion yuan.
Under the fierce competition of the new car-building forces, Evergrande itself is facing difficulties because of the burden of shareholders and financial problems.
After the outbreak of Evergrande's debt crisis, Evergrande wanted to introduce external capital to activate Evergrande.
On August 14, 2023, the electric car company Newton Group announced that it would invest 500 million US dollars in Evergrande. Newton and Evergrande signed a share subscription agreement under which Newton will acquire about 27.5% of Evergrande's total number of common shares and have the right to nominate several board members of Evergrande after the deal is completed. the deal will be completed in the fourth quarter of 2023.
However, due to a series of variables in Evergrande Group, the controlling shareholder of Evergrande, the deal cannot be carried out smoothly.
On January 8 this year, Liu Yongzhao, president and executive director of Evergrande Automobile Company, was criminally detained in accordance with the law on suspicion of breaking the law and committing a crime.
On March 3 this year, Evergrande announced again that it and the subscribers were still studying whether the proposed deal would be carried out.
On April 5, Evergrande said it had not made any further progress in its previously proposed deal and the revision of the terms of the debt-for-equity swap. As the share subscription is no longer carried out, the company will not apply to the executive staff for their consent to the special transaction, that is, the above transaction will be terminated.
In terms of its own financial situation, Evergrande is not optimistic. Evergrande's 2023 performance report showed that last year's revenue was 1.34 billion yuan, an increase of 900.04% over the same period last year; a gross loss of 51 million yuan; a total net loss of 11.995 billion yuan, a decrease of 56.64% over the same period last year, including a loss of 1.061 billion yuan for the terminated business (that is, the divestiture of real estate projects). Asset disposal, asset impairment and other non-operating losses of 6.384 billion yuan, operating losses of 4.55 billion yuan.
According to the announcement, by the end of 2023, Evergrande's automobile assets totaled 34.851 billion yuan and liabilities totaled 72.543 billion yuan, of which 26.484 billion yuan was borrowed, 43.012 billion yuan in trade and other payables and 3.047 billion yuan in other liabilities.
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