China’s Evergrande NEV Sinks After Creditors File Bankruptcy Petition for Two Units
Huang Lin
DATE:  Jul 29 2024
/ SOURCE:  Yicai
China’s Evergrande NEV Sinks After Creditors File Bankruptcy Petition for Two Units China’s Evergrande NEV Sinks After Creditors File Bankruptcy Petition for Two Units

(Yicai) July 29 -- Shares of China Evergrande New Energy Vehicle Group plunged after the electric vehicle arm of struggling property developer China Evergrande Group said the creditors of two subsidiaries have applied for their bankruptcy reorganization.

Evergrande NEV [HKG: 0708] finished 9 percent down at 30 Hong Kong cents (4 US cents) per share today. The stock has declined 41 percent since the end of last year.

Creditors of Evergrande NEV Guangdong and Evergrande Intelligent Automobile Guangdong filed to a local court for their bankruptcy reorganization on July 25, the parent company announced yesterday, citing a notice it received on July 26.

It will have a significant impact on the production and business activities of Evergrande NEV, Evergrande NEV Guangdong, and Evergrande Intelligent Automobile Guangdong, the company added.

On May 26, Evergrande NEV said in an exchange filing that its liquidators signed a non-binding deal with a potential buyer for a 29 percent stake in the Guangzhou-based company. The stock skyrocketed 87 percent the next day.

But Evergrande NEV announced on June 26 that the carmaker, the sellers, and the buyer had yet to reach an agreement and that the sale might not proceed. The stock fell as much as 8.1 percent that day.

Evergrande NEV’s net loss shrank nearly 57 percent to CNY12 billion (USD1.7 billion) last year, according to its latest annual earnings report. As of Dec. 31, Evergrande NEV had delivered just over 1,300 vehicles.

Editor: Futura Costaglione

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Keywords:   NEVs,China Evergrande New Energy Vehicle Group Limited