Today, the Hong Kong stock Hengda series suddenly moved higher, and as of press time,Up more than 45%,Up more than 14%.
As for the reason for the increase,Times reporters sent inquiries to Evergrande, but no response had been received as of press time.
On May 27, trading resumed, and the intraday share price rose by more than 100%. As of the close of the day, it was reported at HK $0.71, an increase of 86.84%. Since then, the company’s share price has continued to decline, and as of the close of the latest trading day, the cumulative decline has reached 22.37%.
Previously, it was announced that 29% of the shares would be acquired
On May 26, Hengda Automobile announced that 29% of the company’s shares would be acquired immediately. It is reported that the company’s joint and individual liquidators representThe Group (in liquidation), Evergrande Health Industry Group Limited, Acelin Global Limited (collectively, the Potential Vendors) entered into a term book with a third party purchaser (the Potential Purchaser) who, to the best of his knowledge, knowledge and belief, having made all reasonable enquiries, is independent of the Company and its affiliates, pursuant to which the Potential Vendor and the Potential Purchaser may enter into a definitive Sale and Purchase Agreement for the sale and purchase of shares in the Company held by the Potential Vendor.
Specifically, the potential seller holds a total of 6.348 billion shares (approximately 58.5% of the total issued shares) (potential shares for sale), subject to the conclusion of the sale and purchase agreement, 3.145 billion potential shares for sale (approximately 29% of the total issued shares) will be acquired, and the remaining 3.20 billion shares (approximately 29.5% of the total issued shares) will become the subject of an option for a certain period after the date of the sale and purchase agreement.
The terms of the agreement also revealed that the potential buyer will provide loans to the company to finance the group’s continued operation and development of the group’s electric vehicle business. Evergrande admitted that the company is currently severely short of funds and the Tianjin factory has stopped production operations since the beginning of this year.
Was ordered to return 1.90 billion yuan subsidy
On the evening of May 22, Hengda Automobile announced that its subsidiary HengdaAutomobile Investment Holding Group Co., Ltd. recently received a letter from the relevant local administrative departments, demanding the cancellation of a series of previously signed investment cooperation agreements and the return of various incentives and subsidies that have been issued totaling about 1.90 billion yuan.
According to Hengda Automobile’s financial report, the company has disclosed that it mainly builds production bases in Tianjin, Shanghai and Guangzhou. Since April 29, 2019, Hengda Automobile Investment Holding Group Co., Ltd. and related subsidiaries have signed a number of investment cooperation agreements with relevant local administrative departments. However, as the company’s financial crisis broke out, resulting in the failure to fulfill its contractual obligations with local governments, the relevant local administrative departments proposed to terminate the agreement and requested the return of the awards and subsidies that had been issued in accordance with the law.
Evergrande Automobile’s financial report shows that in the "deferred income" government subsidy part of the annual reports over the years, the government subsidy fund data in 2018, 2019, 2020, 2021 and 2022 are: 0 yuan, 1.363 billion yuan, 1.194 billion yuan, 409 million yuan and 0 yuan respectively. It can be seen that after signing cooperation agreements with local governments in 2019, Evergrande Automobile’s government subsidy funds rose sharply, and returned to zero after the subsequent debt crisis.
On the evening of March 27, Hengda Automobile disclosed its financial report for 2023. The financial report shows that as of December 31, 2023, Hengda Automobile’s cumulative loss has reached 110.841 billion yuan, of which the loss in 2023 is about 12 billion yuan. As of the end of 2023, Hengda Automobile’s total assets are 34.851 billion yuan, and its total liabilities are 72.543 billion yuan, of which 26.484 billion yuan is borrowed; during the same period, Hengda Automobile’s cash and cash equivalents are 129 million yuan, which is far from enough to cover the loan.