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By the end of 2023, Evergrande had only 1% cash on hand.Doxxbet50freespins.29 billion yuan.

The house missed all night's rain, and Evergrande, which lost its strategic investment not long ago, is now facing the situation of returning subsidies.

On the evening of May 22nd, Evergrande Automobile (00708.HK) announced that its subsidiary Evergrande New Energy Automobile Investment holding Group Co., Ltd. recently received a letter from the relevant local administration, which shows that since April 29, 2019, Evergrande has signed a series of investment cooperation agreements with relevant local administrative departments for failing to fulfill its contractual obligations in accordance with the relevant terms of the agreement. In accordance with the provisions of the law, the relevant local administrative departments intend to require Evergrande to rescind the relevant agreement and return the awards and subsidies to the local government departments totaling about 1.9 billion yuan, and the relevant subsidiaries shall be jointly and severally liable.

In response, Evergrande said it currently plans to send a letter to the relevant local administrative departments for coordination. Evergrande also mentioned that the final implementation of the above letter requirements will have a significant adverse impact on Evergrande's financial position and operation.

If the subsidy is returned, Evergrande, which has lost its war investment funds, will undoubtedly face greater financial pressure.

In august 2023, Evergrande signed an agreement with electric car company Newton group, which will subscribe for more than 6.177 billion of Evergrande's shares for a total price of about HK $3.89 billion and hold 27.5 per cent of Evergrande's expanded outstanding shares.

Evergrande originally planned to use the net proceeds from this subscription for vehicle development, production and sales, as well as repayment of transitional support funds. Among them, Newton Group will first provide 600 million yuan interest-free transitional funds for the research and development, production and sales of Evergrande cars.

Evergrande also said that holding hands with Middle East Capital will effectively solve the financial difficulties facing Evergrande's development. In the future, we will spare no effort to promote the production and sales of Hengchi 5, and further promote the R & D and mass production of Hengchi 6, Hengchi 7 and other new models. Newton Group will also assist Evergrande to open up overseas markets and export 30,000 to 50,000 Hengchi vehicles to the Middle East market every year.

The deal was scheduled to close in the fourth quarter of 2023, after which Evergrande will no longer be a wholly owned subsidiary of property company China Evergrande.

But the deal has a series of prerequisites, including the completion of Evergrande's debt restructuring. During this period, Evergrande not only failed to proceed with the debt restructuring as scheduled, but on January 29 this year, Evergrande was ordered to be wound up by the Hong Kong High Court.

Affected by this, the above transaction was suspended for about half a year, during which the two sides held many negotiations, but there was no effective progress in the transaction. Evergrande finally lost the war capital in April 2024.

By the end of 2023, Evergrande, which made cross-border cars, had accumulated losses of more than 110 billion yuan, of which about 12 billion yuan in 2023.

However, also in 2023, Evergrande achieved revenue of about 1.34 billion yuan, a sharp increase of 900.04% compared with the same period last year. Although it is promoting a complete transformation across the border, Evergrande's income is still inseparable from the support of property sales. On the one hand, the sharp increase in revenue came from the increase in sales of cars and auto parts from about 61 million yuan in the previous year to 146 million yuan at the end of 2023, and on the other hand, because income from property sales increased to 1.136 billion yuan.

By the end of 2023, Evergrande had total assets of 34.851 billion yuan and liabilities of 72.543 billion yuan, of which 26.484 billion yuan was borrowed; in the same period, Evergrande's cash and cash equivalents were 129 million yuan, which was far from enough to cover loans. Evergrande said it would spare no effort to introduce strategic investors to actively raise funds to maintain the group's survival and future development plans.

In terms of production and delivery, Evergrande is also facing a lot of pressure because of financial problems. In view of this, Evergrande also arranged for some staff to have a holiday, and production at the Tianjin plant was suspended. By the end of 2023, Tianjin manufacturing base produced Hengchi 5 according to market demand, mass production in September 2022, a total of 1700 cars off the production line, which did not meet the relevant requirements. By the end of 2023, more than 1389 vehicles have been delivered.

It is worth mentioning that on May 17, in the red of real estate stocks, Evergrande's share price soared by more than 70%, and then suspended trading, "waiting for our company to issue an announcement about inside information." At present, this inside information has not been disclosed, Evergrande will still be suspended.