[Aika Auto, Industry News, Original]
Evergrande Motor announced that due to lack of funds, the Tianjin factory has suspended production (|). Production of Hengchi 5 is expected to resume in May. In addition, Evergrande Motor sold two of its companies, involving 47 "health space" projects, for a total price of only 2 yuan.
According to the announcement, the initial consideration of the target shares is RMB 2, subject to adjustment with reference to the adjusted net asset value of the target group as of December 31, 2022. Evergrande Automobile pointed out that as determined by the parties to the sale and purchase agreement after fair negotiation, as of December 31, 2022, the target company’s net unaudited liabilities were approximately 24.789 billion yuan, and the independent property valuer’s valuation of the project on February 28, 2023 was approximately 60.154 billion yuan.
Upon completion of the transaction, Evergrande Automobile is expected to record a sale gain of approximately 24.789 billion yuan. The sale gain arising from the sale is the difference between the transaction consideration and the net liability of the sale company at December 31, 2022. However, as the notional consideration to be paid for the sale is only 2 yuan, it is not expected to receive any net proceeds from the sale. It can be seen that although the transaction consideration is only 2 yuan, Evergrande Automobile has stripped off about 24.80 billion yuan of liabilities.
Regarding this reorganization, the board of directors of China Evergrande believes that the reorganization can optimize the structure of Evergrande Automobile Group, allowing it to focus on the development of new energy vehicles and allocate appropriate resources to the research and development and production of new energy vehicles in the new energy vehicle division.
Editor’s opinion: Asset restructuring can indeed enable Evergrande to shed its previous burden in a short period of time, but the competition in the new energy vehicle market is more intense than that in the real estate market. Whether Evergrande can gain a firm foothold in this market will take time to verify.
Highlights Review:
Hengda Automobile may be acquired? The parties are still deadlocked
Hengchi 5 has been officially listed, priced at 179,000 yuan/car
Hengchi 5 will be officially launched on August 1 and will be delivered in October