On June 30, Evergrande Auto announced that due to ongoing liquidity issues, it is unable to determine the release date of its 2024 annual financial report. The company also stated that its stock suspension, effective since April 1, will be extended indefinitely.
Evergrande explained: “Although the Group has been seeking investors and attempting to sell certain assets, discussions with potential strategic investors and buyers have not materialized. Apart from the appointment of an administrator for Evergrande Hengchi New Energy Vehicle (Shanghai) Co., Ltd., certain other subsidiaries have also received bankruptcy review notices and court orders for asset auctions to settle debts.”
The company emphasized that limited resources are being prioritized for basic operations, leaving insufficient funds to cover fees for auditors and professional advisors required to complete the audit work for 2024. “As a result, the company cannot reasonably determine the publication date of the 2024 results,” the statement said. Trading of Evergrande Auto’s shares has been suspended since April 1 due to the delayed disclosure and has yet to resume.
In February, Evergrande disclosed that it failed to secure strategic investors or buyers to help ease its liquidity crisis, citing difficult conditions in China’s NEV market. The company acknowledged that its low cash position prevented auditors and advisors from carrying out on-site audit work for the year ending December 31, 2024. Although it continues to seek investors, in March Evergrande confirmed it would delay releasing its 2024 results, which under listing rules were due by March 31, 2025. The board argued that publishing unaudited management accounts might mislead shareholders and investors.
Once a high-profile EV entrant backed by Evergrande founder Xu Jiayin, the company invested nearly RMB 50 billion under an aggressive expansion model. In 2020, it unveiled six electric models across sedan, coupe, SUV, MPV, and crossover categories. Its first mass-production vehicle, the Hengchi 5, was launched in July 2022 and hailed as “the best electric SUV under RMB 300,000.” However, it remains the company’s only product, with minimal market presence.
Financial data shows that as of June 30, 2024, Evergrande Auto recorded revenue of RMB 38.38 million, down 75.17% year-on-year. Net loss widened to RMB 20.26 billion, already exceeding the loss for the whole of 2023. Total assets stood at RMB 16.37 billion, but cash and cash equivalents were only RMB 39 million, against total liabilities of RMB 74.35 billion. Combined with halted production, subsidiary bankruptcies, and mounting survival pressure, Evergrande Auto is now in a state of severe insolvency with almost no cash flow. Its future remains highly uncertain.
