On September 30, Evergrande Auto (00708.HK) disclosed a quarterly update on the resumption of trading procedures and an announcement on continued suspension of trading.
Evergrande Auto stated that the group's liquidity challenges remain. As discussions with potential strategic investors have not yet materialized, the group is continuing to sell non-core assets to support its operations and replenish its capital levels. At the same time, several subsidiaries of the company that do not have a significant impact on the group's operations have received notices and payment demands regarding the review of bankruptcy liquidation procedures and the auction of assets to satisfy judgment debts.
Evergrande Auto said it continues to prioritize its limited financial resources for maintaining basic operating activities at its production plants over other activities, including hiring its auditors and other relevant professional consultants to provide on-site and other audit services for the year ending December 31, 2024. As the 2024 results have not yet been published, the publication of the group's interim results for the period ending June 30, 2025 has been delayed.
Evergrande Auto emphasized that it is unable to reasonably determine the publication date of the unpublished financial results required by the Listing Rules. The company will strive to seek investment to alleviate the group's liquidity situation and facilitate appropriate restructuring. The company will announce the expected publication date of the unpublished financial results as soon as practicable after reasonably determining the date.
In addition, Evergrande Auto will also seek to appoint a director to fill the temporary vacancy left by Fu Manyi's resignation in accordance with the listing rules disclosed in the August announcement, and will strive to comply with the resumption of trading guidelines and resume trading of shares on the Hong Kong Stock Exchange as soon as practicable.
Trading of Evergrande Auto's shares on the Hong Kong Stock Exchange has been suspended from 9:00 a.m. on April 1, 2025, pending the publication of the Group's full-year results announcement for 2024.
It is important to note that if the shares remain suspended for 18 consecutive months, until September 30, 2026, the HKEX may delist the shares. If Evergrande Auto fails to remedy the issues that led to the suspension, implement the resumption of trading guidelines, and fully comply with the Listing Rules to the satisfaction of the HKEX by September 30, 2026, and resume trading of the shares, the HKEX's Listing Division will recommend to the HKEX Listing Committee that the company's listing be cancelled. The HKEX reserves the right to impose a shorter specific remediation period or to cancel the company's listing immediately, if appropriate.
