Evergrande Auto Issues Late-Night Announcement: Trading To Remain Suspended!

On the evening of August 7th, Evergrande Auto announced that due to failure to meet the listing rules requirements of the Hong Kong Stock Exchange, the company must follow the supplementary resumption guidelines. According to the announcement, Evergrande Auto must resolve the suspension issue and meet all resumption guidelines as well as fully comply with the listing rules by September 30, 2026; otherwise, its listing status may be cancelled.

Image source: Screenshot from Evergrande Auto announcement

The information shows that Evergrande Auto's stock will be suspended from trading starting April 1, 2025, and will remain suspended until further notice.

Evergrande Auto's predecessor is Evergrande Health, which officially entered the new energy vehicle sector in 2019. In 2021, Evergrande Health was renamed Evergrande Auto. In its early development stages, Evergrande Auto rapidly expanded its industrial chain through large-scale investments and acquisitions, including acquiring Swedish NEVS and investing in companies like Koenigsegg, in an attempt to create a high-end new energy vehicle brand.

However, the development of Evergrande Auto has not been smooth sailing. Since 2021, the company has faced numerous challenges, including funding shortages, slow project progress, and changes in the market environment. In June 2021, Evergrande Auto's land parcel in Nansha, Guangzhou, was identified as idle land due to the company's own reasons leading to the land being idle.

In February this year, Evergrande Auto announced that it had failed to secure strategic investors or buyers to ease the group’s liquidity problems, further exacerbating the company’s operational difficulties.

On April 1, 2025, Evergrande Auto failed to secure strategic investors or buyers for additional funding, resulting in the delay of the publication of its 2024 annual results announcement, and the company's shares were suspended from trading on the Hong Kong Stock Exchange. Since then, the company has been striving to resolve the suspension issue, but as of now, it still has not met the Hong Kong Stock Exchange's requirements for resumption of trading.

Evergrande Auto is currently facing challenges mainly in the areas of funding, operations, and compliance. The company needs to complete financial disclosures within the stipulated time, demonstrate its ability to continue as a going concern, and resolve issues related to asset disposal. Although Evergrande Auto states that it is still striving to find strategic investors or buyers, the difficult operating environment of the new energy vehicle market undoubtedly increases the difficulty of its resumption of trading.

Image source: Evergrande Auto

This suspension once again highlights the uncertainties and risks faced by the new energy vehicle industry during its rapid development. Whether Evergrande Auto can meet the resumption requirements by September 30, 2026 remains to be seen, and Gasgoo will continue to monitor the situation closely.