Recently, Evergrande Automobile issued an announcement stating that,The company has so far been unsuccessful in finding strategic investors or buyers who can help alleviate the group's liquidity problems and facilitate the appropriate restructuring of the group.. The announcement shows:As the current operating environment in mainland China's new energy vehicle market is very difficult, this situation will undoubtedly hinder the company's search for strategic investors or buyers.
Although the Group has further laid off employees and cut other operating expenses in order to save costs in the past six months, the Group's low level of cash and cash equivalents is being used to maintain basic operating activities, including basic maintenance of the Group's asset status, in particular the Group's production plants and machinery and equipment.
Given the low and insufficient level of funding, the Group is unable to ensure the performance of certain services, including but not limited to the performance of on-site audits by its auditors and other relevant professional advisors for the year ended 31 December 2024.
However, the company is still making unremitting efforts to continue to find strategic investors or buyers to alleviate the group's liquidity problems.
Evergrande Automobile’s 2024 interim report shows that,As of June 30, 2024, Evergrande Automobile has delivered more than 1,429 new energy vehicles, with total liabilities of 74.35 billion yuan.
The turnover in the first half of last year was 38.38 million yuan, a decrease of 116.16 million yuan compared with the 154.54 million yuan in the same period in 2023, and a loss of 20.257 billion yuan was recorded, an increase of 13.384 billion yuan from the loss of 6.873 billion yuan in the same period in 2023.