Evergrande NEV Units Ordered to Begin Bankruptcy Reorganization
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A court has ordered two subsidiaries of debt-ridden property developer China Evergrande Group’s electric vehicle (EV) unit into bankruptcy reorganization proceedings in response to a creditors’ petition.
The ruling came after a Friday hearing about the “bankruptcy and reorganization” of Evergrande New Energy Vehicle (Guangdong) Co. Ltd. and Evergrande Smart Automotive (Guangdong) Co. Ltd., their parent said in a stock exchange filing dated Monday.

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- DIGEST HUB
- Two subsidiaries of China Evergrande Group’s EV unit entered bankruptcy reorganization following a creditors' petition.
- Evergrande NEV's shares dropped 7.9% and investors are advised to exercise caution; the company halted production in early 2023 due to deepening debt issues.
- The Guangzhou factory, one of Evergrande NEV's three manufacturing hubs, faces potential asset liquidation after being ordered to repay 1.9 billion yuan in government subsidies.
- China Evergrande New Energy Vehicle Group Ltd.
- China Evergrande New Energy Vehicle Group Ltd. (Evergrande NEV) is the electric vehicle unit of debt-laden property developer China Evergrande Group. Established in 2019, it has manufacturing hubs in Tianjin, Shanghai, and Guangzhou. Once boasting plans to be the world's top EV-maker, it halted production in early 2023 due to its parent’s debt crisis. Evergrande NEV’s sole mass-produced model is the Hengchi 5 SUV. It faces bankruptcy reorganization and significant debt repayment challenges.
- Evergrande New Energy Vehicle (Guangdong) Co. Ltd.
- Evergrande New Energy Vehicle (Guangdong) Co. Ltd. owns the majority of assets of Evergrande NEV’s Guangzhou facility. It oversees the construction of a smart auto parts factory in Guangzhou. The facility produces electric car bodies and assembles key components, with a capacity for 100,000 cars annually. The company has been ordered into bankruptcy reorganization due to financial troubles.
- Evergrande Smart Automotive (Guangdong) Co. Ltd.
- Evergrande Smart Automotive (Guangdong) Co. Ltd. emerged from Ruichi Smart Car (Guangzhou) Co. Ltd., previously affiliated with Faraday Future Intelligent Electric Inc. Ruichi purchased land in Guangzhou’s Nansha district in 2018 for Evergrande NEV’s Guangzhou plant. The Guangzhou factory assembles electric car bodies, battery packs, and power system driver components, with a capacity of producing components for 100,000 cars annually. The company is now undergoing bankruptcy reorganization proceedings.
- Ruichi Smart Car (Guangzhou) Co. Ltd.
- Ruichi Smart Car (Guangzhou) Co. Ltd. evolved into Evergrande Smart Automotive (Guangdong). It was an affiliated firm of Faraday Future Intelligent Electric Inc., the California-based EV startup founded by Jia Yueting. In April 2018, Ruichi purchased land in Guangzhou’s Nansha district, which became the site of Evergrande NEV's Guangzhou plant. Rumors suggested Evergrande helped Ruichi buy the land after Jia was blacklisted for defaulting on debts.
- Faraday Future Intelligent Electric Inc.
- Faraday Future Intelligent Electric Inc. is a cash-strapped California-based EV startup founded by disgraced Chinese tech tycoon Jia Yueting. Ruichi Smart Car (Guangzhou) Co. Ltd., which later became Evergrande Smart Automotive (Guangdong), was once an affiliated firm of Faraday Future.
- April 2018:
- Ruichi spent 364 million yuan ($50.8 million) purchasing a plot of land in Guangzhou’s Nansha district.
- June 2019:
- Guangzhou Municipal Planning and Natural Resources Bureau provided information about Evergrande New Energy Vehicle (Guangdong) being responsible for the construction of a smart auto parts factory.
- April 2021:
- At its peak valuation, Evergrande NEV was worth more than Ford Motor Co. or General Motors Co.
- Late 2022:
- Evergrande NEV began delivering electric SUVs.
- Early 2023:
- Evergrande NEV halted production as its parent’s debt problems deepened.
- 2023:
- Evergrande NEV’s Tianjin plant produced 1,700 Hengchi 5 SUVs.
- January 2024:
- A court in Hong Kong ordered Evergrande to be liquidated after it failed to come up with a debt restructuring plan.
- May 2024:
- Evergrande NEV mentioned that a potential buyer was considering taking a 29% stake in the company and might also extend a new line of credit.
- June 2024:
- Evergrande NEV was ordered by Chinese authorities to repay about 1.9 billion yuan in government subsidies.
- August 2, 2024:
- A Friday hearing was held about the 'bankruptcy and reorganization' of Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong).
- August 5, 2024:
- The ruling to order Evergrande’s subsidiaries into bankruptcy reorganization proceedings was made public in a stock exchange filing.
- August 5, 2024:
- Shares of Evergrande NEV closed down 7.9%.
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