Transferred from: Huaxia Times

Big news from Evergrande Automobile.LeaderboardarcadeHey, someone's going to pick up the plate!

On the evening of May twenty _ sixthLeaderboardarcadeEvergrande issued its latest announcement on the Hong Kong Stock Exchange. Disclosed information about potential share transfers and announced that the company's shares would resume trading on May 27.

According to the announcement, Evergrande is aware that on 16 May 2024, the joint and individual liquidators entered into the terms and conditions between and on behalf of the China Evergrande Group (in liquidation), Evergrande Health Industry Group Limited, Acelin Global Limited (collectively referred to as the potential Vendor) and a third party purchaser (the "potential Purchaser") who is independent of the Company and its connected persons to the best of its knowledge, knowledge and belief after making all reasonable enquiries.

Accordingly, the potential seller and the potential buyer may enter into a final sale and purchase agreement for the sale and purchase of the shares of the Company held by the potential seller.

As at the date of this announcement, potential sellers hold a total of 63% of EvergrandeLeaderboardarcade.4.8 billion shares (about 58% of all issued shares)Leaderboardarcade.5%). Subject to the conclusion of the Sale and purchase Agreement and subject to its terms and conditions, it is hereby proposed that 3.145 billion potential shares for sale (accounting for approximately 29.0% of all issued shares on the date of this announcement) will be acquired immediately, and 3.203 billion potential shares for sale (accounting for approximately 29.5% of all issued shares on the date of this announcement) will become the subject of an option for potential purchasers for a certain period of time after the date of the Sale and purchase Agreement.

Evergrande has also taken note of the reference in the terms and conditions to the conclusion of a credit agreement whereby the potential buyer (or the other party designated by him with the consent of the Company) will provide credit to Evergrande to finance the continued operation and development of the Group's electric vehicle business.

This announcement means that someone will take over Evergrande!

Evergrande's three largest shareholders, Evergrande Health, Evergrande Group and Acelin Global Limited, hold a total of 58.54 per cent of Evergrande's shares. Then the announcement said that some mysterious third party immediately acquired 29% of Evergrande's shares held by the three major shareholders, while the remaining 29.5% was likely to continue to be acquired in the future. 、

This mysterious buyer will provide credit funds to Evergrande to help Evergrande resume operations and continue to produce trams.

At present, Evergrande is facing a serious shortage of funds. Its plant in Tianjin has stopped production since the beginning of this year. So far, the factory has not resumed production.

The notice also pointed out that once the sale and purchase agreement is formally signed, it may trigger the liability of a mandatory comprehensive offer. According to the relevant provisions of the acquisition Code, the contract period will be counted from the date of this announcement.

Evergrande suspended trading in Hong Kong on May 17. On the same day, Evergrande once soared by 70%, and then announced the suspension of its license. Evergrande shares rose 53.23 per cent when trading was suspended. Before the suspension, Evergrande had a total market capitalization of HK $4.121 billion.

It is worth mentioning that Evergrande announced on the Hong Kong Stock Exchange on the evening of May 22 and recently received a letter from the relevant local administrative departments. It is required to lift a series of previously signed investment cooperation agreements and to refund about 1.9 billion yuan in rewards and subsidies.

The announcement shows that because Evergrande fails to fulfill 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, plan to require the relevant subsidiaries to: terminate the relevant agreements; return the awards and subsidies issued to the relevant local administrative departments totaling about 1.9 billion yuan, and the relevant subsidiaries shall be held jointly and severally liable. At present, the relevant subsidiaries plan to write to the relevant local administrative departments for coordination.

Evergrande said that at present, the relevant subsidiaries plan to write to the relevant local administrative departments for coordination. At the same time, Evergrande acknowledges that the final implementation of the above notice requirements will have a significant adverse impact on the financial position and operation of the company or its relevant subsidiaries.

It is reported that over the past five years, Evergrande has lost more than 110 billion yuan and delivered only 1389 units. In 2023, Evergrande's total revenue was 1.34 billion yuan, of which more than 1.1 billion yuan came from property sales, accounting for more than 90% of the total income.