Core Viewpoint - Evergrande Auto is struggling to maintain operations as it faces significant challenges related to idle land and liquidity issues [1][3]. Group 1: Idle Land Issues - The Guangzhou Planning and Natural Resources Bureau has issued a notice recognizing a piece of land, previously allocated to Evergrande Auto, as idle since June 9, 2021, due to company-related reasons [1]. - The recognized idle land covers an area of 437,441 square meters and was originally intended for industrial use [1]. - According to regulations, if the land remains undeveloped for more than two years, it may be reclaimed without compensation [1]. Group 2: Historical Context and Investments - Evergrande began its foray into the new energy vehicle sector in 2018, making investments in various companies, including NEVS and e-Traction [2]. - The company announced plans to achieve a production capacity of 500,000 to 1,000,000 vehicles within three years, starting with the construction of the Evergrande Auto City project in 2019, which had a total investment of 160 billion yuan [2]. - The project included acquiring land in Nansha District for 8.47 billion yuan and later another plot for 5.9 billion yuan, totaling approximately 170,000 square meters for vehicle manufacturing and R&D [2]. Group 3: Financial Struggles and Attempts to Attract Investment - Evergrande Auto has faced multiple land recoveries due to financial difficulties, with previous land acquisitions in cities like Zhengzhou also being reclaimed for lack of development [3]. - The company attempted to attract investment from Middle Eastern investors, who planned to invest approximately 3.89 billion HKD for a significant stake in Evergrande Auto, but this plan ultimately fell through [3]. - As of June 30, the company continues to face liquidity issues and is seeking to sell assets to improve its financial situation, while the timeline for its 2024 financial results remains uncertain due to insufficient funds [3].
广州恒大汽车城一地块将被无偿收回，曾闲置4年