China Ever Grande New Energy Vehicle, an electric vehicle unit of the China Ever Grande Group, which is in financial distress, has abandoned its secondary listing plans on the Shanghai Stock Exchange, the company said in a submission on Sunday.
The proposed issue “does not progress,” the statement said.
Shareholders approved a plan to issue 1,560 million yuan-denominated shares on October 20, last year. China Evergrande New Energy’s share price collapsed after that date, but Friday’s closing price was HK $ 2.23, compared to HK $ 23.40 on October 20th.
On Friday, the company also warned about payment issues. According to Securities Filing, “As of the date of this announcement, the Group is (a) experiencing a serious shortage of funds.” “In light of liquidity pressure, the company stopped paying some of its operating costs and some suppliers stopped supplying to the project.” China Evergrande New Energy attempts to raise funds and sell assets. However, he said he had not reached a binding agreement. (See previous post.)
China’s Evergrande new energy stock in Hong Kong on Friday fell 23% due to rumored payment problems. On Friday, the stock price of the parent China Ever Grande Group, led by Billionaire Xu Jiayin, fell 11.6% to HK $ 2.36. China Evergrande Group is the world’s most debt-ridden real estate developer, with over $ 300 billion in debt. Non-payment and infection concerns have shaken global financial markets this week.
China Evergrande New Energy is 75% owned by China Evergrande Group.
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