powerballprizemoney| Evergrande Automobile: Received a letter from the local administrative department terminating the agreement, requesting a refund of 1.9 billion yuan in rewards and subsidies

China Evergrande New Energy Automobile Group Co., Ltd. (Evergrande Automobile, 00708Powerballprizemoney(HK) announcement, receipt of rescinding agreements and return of rewards and subsidies by local administrative departmentsPowerballprizemoneyIt's a request.

Evergrande New Energy Automobile Investment holding Group Co., Ltd., a subsidiary of Evergrande Motor, recently received a letter from the relevant local administrative departments, the announcement said. the main content is that the relevant subsidiaries have signed a series of investment cooperation agreements with relevant local administrative departments since April 29, 2019.

The letter requires that because the company fails to perform its contractual obligations in accordance with the relevant provisions of the relevant agreement, the relevant local administrative departments, in accordance with the provisions of the Civil Code of the people's Republic of China and other Chinese laws and regulations, it is proposed to require the relevant subsidiaries to rescind the relevant agreements.PowerballprizemoneyAnd return the awards and subsidies to the relevant local administrative departments totaling about 1.9 billion yuan, and the relevant subsidiaries shall be jointly and severally liable.

Evergrande said that at present, the relevant subsidiaries plan to write to the relevant local administrative departments for coordination. The final implementation of the above letter requirements will have a significant adverse impact on the financial position and operation of the Company or the relevant subsidiaries.

On May 17, Evergrande once soared 70%. After that, Evergrande announced that it would suspend trading on the Stock Exchange. when trading was suspended, Evergrande's share price rose by 53%.Powerballprizemoney.23%. Evergrande will continue to suspend trading until further notice.

According to the annual report, Evergrande New Energy vehicle (Tianjin) Co., Ltd. officially produced in September 2022, as of December 31, 2023, produced a total of 1700 Hengchi 5 vehicles, not meeting the relevant requirements. Evergrande said in its annual report that recently, due to financial reasons, the group arranged for some staff to have a holiday and production at the Tianjin plant was suspended. The Group will spare no effort to introduce strategic investors to actively raise funds to maintain the Group's survival and future development plans.

Evergrande's auto revenue in 2023 was 1.34 billion yuan, an increase of 900.04% over the same period last year. The increase in revenue was mainly due to the increase in sales of automobiles and auto parts from 60.63 million yuan up to 2022 to 146 million yuan in the reporting period, and income from property sales increased by 1.136 billion yuan. The gross loss was 51 million yuan, and the net loss totaled 11.995 billion yuan, reducing the loss by 56.64% compared with the same period last year, including a loss of 1.061 billion yuan for the business terminated (that is, the divestiture of real estate projects), a non-operating loss of 6.384 billion yuan for asset disposal and asset impairment, and an operating loss of 4.55 billion yuan, with a total loss of about 37.692 billion yuan.

As of December 31, 2023, Evergrande incurred a loss of 11.995 billion yuan (loss of 27.664 billion yuan in 2022), cumulative loss of 110.841 billion yuan (loss of 98.906 billion yuan in 2022) and shareholder loss of 37.693 billion yuan (loss of 68.651 billion yuan in 2022).

As of May 17, Evergrande shares were trading at HK $0.38 per share.