Core Viewpoint - Evergrande Auto is facing significant financial distress, with multiple subsidiaries undergoing bankruptcy proceedings, leading to a suspension of trading on the Hong Kong Stock Exchange and a drastic decline in financial performance metrics [1][3][5]. Group 1: Bankruptcy Proceedings - The Tianjin Binhai New District People's Court has accepted a bankruptcy and liquidation application for Evergrande New Energy Vehicle (Tianjin) Co., Ltd., a subsidiary of Evergrande Auto [1]. - The Shanghai Third Intermediate People's Court has appointed a manager to oversee the bankruptcy liquidation process for Evergrande Hengchi New Energy Vehicle (Shanghai) Co., Ltd. due to the company's inability to secure funding for ongoing operations [3]. - The trading of Evergrande Auto's shares has been suspended since April 1, 2025, pending the release of its financial results and compliance with resumption guidelines [1][3]. Group 2: Financial Performance - As of June 30, 2024, Evergrande Auto reported revenues of RMB 38.377 million, a year-on-year decrease of 75.17%, and a gross profit of RMB 2.433 million, down 103.99% year-on-year [5]. - The net loss for the company reached RMB 20.257 billion, representing a year-on-year increase in losses of 194.73% [5]. Group 3: Market Reactions - Prior to the suspension of trading, Evergrande Auto's stock price surged by 200% due to rumors of a potential acquisition of its Nansha factory by GAC Group's Huawang project, which were later denied by both parties [3]. - The board of directors of Evergrande Auto acknowledged the recent increase in stock price and trading volume but stated they were unaware of any reasons or information that would necessitate disclosure to prevent market misinformation [5].

Core Viewpoint - Evergrande Auto has entered a severe crisis as its core production base is undergoing bankruptcy liquidation, marking a significant downturn for the once-ambitious electric vehicle company [1][6]. Group 1: Bankruptcy and Liquidation - Evergrande Auto's indirect wholly-owned subsidiary, Evergrande New Energy Vehicle (Tianjin) Co., Ltd., has been officially accepted for bankruptcy and liquidation by the Tianjin Binhai New Area People's Court [6]. - The subsidiary, which has a registered capital of 4.1 billion yuan, is the owner of Evergrande Auto's smart mobility product production facility in Tianjin, but production has been fully suspended since January 2024 [6][1]. - This is not the first production base of Evergrande Auto to enter bankruptcy; another subsidiary, Evergrande Hengchi New Energy Vehicle (Shanghai) Co., Ltd., was also placed under bankruptcy management earlier this year [6]. Group 2: Financial Performance - Evergrande Auto reported a revenue of 38.38 million yuan for the first half of 2024, a decrease of 75.17% compared to 154 million yuan in the same period last year, primarily due to reduced sales of the Hengchi 5 model [7]. - The company incurred a net loss of 20.256 billion yuan in the first half of 2024, which is an increase of 13.38 billion yuan compared to a loss of 6.873 billion yuan in the same period last year, surpassing the total loss for the entire year of 2023 [7]. Group 3: Shareholder and Debt Situation - Evergrande Auto's controlling shareholder, China Evergrande, was delisted from the Hong Kong Stock Exchange on August 25, 2023, after being suspended since January 29, 2024 [9]. - As of June 30, 2022, China Evergrande's total liabilities amounted to 2.474 trillion yuan, with approximately 316.39 billion yuan in overdue debts as of November 2023 [9].