Every editor, Zhang Jinhe
On the evening of October 8, 2023, Hengda Automobile announced the resumption of trading and disclosed the latest progress of the war investment.
Evergrande Motor said in the announcement that on September 29, 2023, it received a letter from Newton Group stating that in view of Evergrande Motor’s announcement of the suspension of trading of its shares on September 28, 2023, together with a series of recent changes in China Evergrande, which in turn will also bring significant uncertainty to the share purchase agreement and the proposed transaction. According to the share purchase agreement, the completion of Evergrande Group’s workout and a series of other prerequisites are very important prerequisites for closing. In this case,Newton Group suspends its obligations under the share purchase agreement.
Newton Group said that according to the transitional financial support agreement, due to the current situation that the preconditions under the share purchase agreement cannot be met, the preconditions for Newton (Zhejiang) Automobile to pay the second and third funds to Hengda New Energy Vehicle (Tianjin) have not been met.It is not obligated to pay the second and third tranches of funds to Hengda New Energy Vehicle (Tianjin) for the time being.
In addition, Newton Group also hopes that Hengda Automobile will reply to clarify the following aspects:
First, the Hengda Group workout plan involved in the share purchase agreement needs to be readjusted, and there are plans to launch a new restructuring plan;
Second, China Evergrande, Evergrande Automobile, creditors and related parties are willing to renegotiate the adjustments required for the proposed transaction plan on the premise that the new restructuring plan is clear.
Third, Newton Group confirms that the letter sent to Hengda Automobile does not constitute a notice to terminate the share purchase agreement, and there is no request to terminate the share purchase agreement as of the date of issuance.
Evergrande Automobile pointed out that on October 5, 2023, it sent a reply to Newton Group.Expresses its willingness to renegotiate with it any necessary adjustments to its plans for the proposed transaction.Evergrande also said it would make further announcements in due course in accordance with the Listing Rules and Takeover Rules.
The board of directors of Evergrande Automobile believes that,It currently has no other insider information that needs to be released.It has applied to the Stock Exchange to resume trading from 9:00 am on October 9, 2023. At the same time, Evergrande also cautioned that as the proposed transaction may not proceed, shareholders and potential investors should exercise caution during the transaction.
On the evening of August 14, Hengda Automobile (0708.HK) issued an announcement,The first strategic investment of US $500 million (about RMB 3.63 billion) by the US-listed company Newton Group (NWTN), which is held by the UAE sovereign fund, and 600 million RMB transition funds will arrive one after another 5 working days after the announcement…
All investment funds are used in Hengda Automobile’s Tianjin factory to ensure the normal production of Hengchi 5 and the successive mass production of Hengchi 6 and 7It is reported thatNWTN Group will also assist Hengda Automobile to develop overseas markets and achieve the annual export of 30,000 – 50,000 Hengchi vehicles to the Middle East market…
Before the suspension, Hengda Automobile’s share price was HK $0.56, and its market value was HK $6.073 billion.
On the evening of September 21, Hengda Automobile released the 2023 semi-annual report, showing that as of June 30, 2023, the company’s total assets 42.852 billion yuan (RMB, the same below),Total liabilities 75.692 billion yuan.
As of June 30, 2023, Hengda Motor borrowed 26.997 billion yuan, up 1.011 billion yuan from 25.985 billion yuan at the end of 2022.
As of June 30, 2023, Hengda Automobile was involved inFailure to pay off maturing debts accumulated about 9.341 billion yuan, the overdue commercial ticket accumulated about 3.591 billion yuan.
In the first half of 2023, Hengda will focus on the production and delivery of Hengchi 5, with more than 760 vehicles delivered.
On the evening of July 26, 2023, Hengda Automobile (00708.HK) released its 2021 and 2022 results announcement. For the year ended December 31, 2022,The Group incurred a loss of 27.664 billion yuan (2021: loss 56.344 billion yuan)As of December 31, 2022, the Group’s cumulative loss and shareholder loss were 98.906 billion yuan (2021: loss 71.241 billion yuan) and 68.651 billion yuan (2021: loss 39.339 billion yuan) respectively.Cash and cash equivalents at 31 December 2022 at $220 million (2021: $2.453 billion)…
Image source: Hengda Automobile Announcement
In terms of debt,Evergrande Automobile’s total liabilities in 2022 are 183.872 billion yuan, excluding the advance receipt 3.314 billion yuan, the debt scale is 180.558 billion yuan. As of December 31, 2022,The Group is involved in unliquidated maturing debts of approximately 11.626 billion yuanIn addition, as of December 31, 202,Group overdue tickets accumulated about 18.512 billion yuanAs of December 31, 2022, Hengda AutomobileThe total assets are 115.22 billion yuan, which is already insolvent…
According to Life Daily, Newton Group (NWTN) is the "pacesetter" of new energy vehicles in the United Arab Emirates, with deep ties to China. Newton Group was formerly known as the Tianjin-based company Iconic. After "Nirvana",Newton Group received funding from the UAE Royal Fund and was established in Dubai in 2016To be born again.Newton Group is now controlled by the Royal Group of the United Arab EmiratesIt has unique advantages in core technologies such as modular pure electric platforms, digital vehicle interconnection systems, electrical and electronic architecture, and autonomous driving. Supercar, full-size SPV, and compact SPV are the main products being developed by Newton Group.
As the first manufacturer to obtain a new energy vehicle production license in Abu Dhabi, the strength of Newton Group should not be underestimated. In May 2022, Newton Group announced that it signed a PIPE subscription agreement with Al Ataa Investment LLC (hereinafter referred to as LLC) in Abu Dhabi, UAE, with a total amount of 200 million US dollars. LLC is the UAE Royal Assets Company, which is not only an important part of the UAE economy, but also represents the national intention of the UAE’s special political system. This subscription shows the strong support of the UAE for new energy vehicles, and also shows the country’s determination to develop local new energy vehicles.
With the strong support of the UAE government,Newton Group successfully "landed" on Nasdaq in the United States on November 14, 2022, becoming the first stock in the United Arab Emirates’ new energy vehicle listing in the United States…
Before putting on the coat of "the first share of new energy vehicles in the United Arab Emirates", Newton Group was active in domestic and foreign markets as the "Iconic" brand.
According to Iconic’s official Weibo chat history, in September 2016, Tianjin Iconic New Energy Vehicle Co., Ltd. was established. In April of the following year, the company brought its first pure electric MPV to the Shanghai Auto Show and claimed that it had won nearly 10,000 pre-orders at home and abroad before it was listed. The first batch of new cars will be delivered in 2019.
Image source: Weibo screenshot
Similar to the "hot-selling" news of the product, there are also its big-name partners that have been officially announced, such as product design by W Motors, a Middle Eastern supercar manufacturer, prototype car building by Turin studio, and working with Microsoft to create future smart travel solutions.
However, as the time came to 2019, Iconic did not release more news on the delivery of orders. But at the same time, the company is still revealing new "highlights". According to a report by China News Service in April 2019, during the 2019 Shanghai Auto Show, Iconic founder and president Wu Nan announced that Iconic established Tianjin Tianqi New Energy Vehicle Co., Ltd.
In July of the same year, Tianjin Aikonik New Energy Vehicle Co., Ltd. was renamed Tianjin Tianqi Group Co., Ltd. At that time, many media reported that Aikonik and Tianjin Jinghai District Government, Tianjin Baili Machinery Equipment Group Co., Ltd. and Tianjin Jinghong Investment Development Group Co., Ltd. reached an agreement on the transfer of equity of Meiya Automobile, and thus obtained the car manufacturing qualification.
Inside the registered place of Tianjin Tianqi Group, picture source: Photo by Li Xing, every reporter
According to the news released by Tianjin Jinghai District Rongmedia Center in 2019, the Tianqi New Energy Vehicle Headquarters project will be settled in Jinghai District Ziya Economic and Technological Development Zone. The project is divided into two phases as a whole. The first phase starts the new energy vehicle production base project, and the planned annual production capacity is 50,000 new energy MPVs. It is expected to start construction in October 2019 and be completed and put into operation in October the following year.
However, there is no public information on the progress of the project.
Previously, a reporter from the "Daily Economic News" called the investment project department of the Jinghai District Government Service Office to inquire about the follow-up progress of the aforementioned project. After the other party’s inquiry, the project was not established in the system. "[The project unit at that time] may have an agreement with the district government, but it may only be a framework agreement, or a strategic agreement. In the end, the project unit may not be cost-effective (think) it is not suitable, or the supporting site selection may feel that there is a problem, and it will not be connected. Then the project will be completed in the end."
The daily economic news is comprehensive from Hengda’s announcement and the daily economic news (reporters: Zhu Chengxiang, Li Xing, Yang Yu)
Disclaimer:articleThe content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
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