Ge Long Hui A P P·2025-03-26 14:22Core Viewpoint - The dramatic surge in Evergrande Auto's stock price, which increased nearly 200% in just five minutes, was primarily driven by rumors regarding a potential acquisition by GAC Group, but these rumors were later denied by GAC [1][3][4]. Group 1: Stock Performance - Evergrande Auto's stock experienced a peak increase of over 236% during intraday trading, ultimately closing up 74.79% at HKD 0.208, with a total market capitalization of HKD 22.56 billion [1]. - Since October 3, the stock has seen a cumulative decline of nearly 80% [12]. Group 2: Rumors and Clarifications - The surge in stock price was fueled by a rumor that GAC Group would acquire Evergrande Auto's Nansha factory, which GAC later clarified was untrue, stating that their GH project would prioritize using existing production capacities from their own brands [3][4][10]. - GAC Group's GH project was established with a registered capital of RMB 1.5 billion and aims to collaborate with Huawei to launch a new automotive brand [6][7]. Group 3: Financial Situation - As of June 30, 2024, Evergrande Auto reported cash and cash equivalents of only RMB 39 million, total assets of RMB 16.369 billion, and total liabilities of RMB 74.35 billion, including borrowings of RMB 26.59 billion and trade payables of RMB 46.695 billion [14]. - The company has been actively seeking strategic investors to alleviate liquidity issues and has previously halted discussions regarding potential share transfers [14].