Evergrande Auto Resumes Trading Today Ahead of Friday Suspension

After the trading of its shares was suspended on March 21, Evergrande Auto, the auto arm of embattled property giant China Evergrande Group, resumed stock operations from 9:00 a.m. on Wednesday. As of press time, its stock price had fallen 8.52% to HK$3.22 ($0.5) per share.

However, according to an announcement issued by Evergrande Auto on Tuesday, the company is not expected to publish audited financial results as of December 31, 2021 on or before Thursday. Therefore, according to the requirements of the Hong Kong Stock Exchange (HKEx), its shares will again cease trading from 9:00 a.m. on April 1.

Evergrande Auto said that it will cooperate in striving to complete the audit work about three months after the suspension of trading, and apply to the HKEx for the resumption of trading of the company’s shares as soon as possible.

According to Evergrande Auto’s latest financial report, the company’s net profit in the first two quarters of 2021 was -4.79 billion yuan (-$753 million), down 110.51% year-on-year. Its operating income was 6.923 billion yuan, a year-on-year increase of 53.50%, while the total assets of the company were 165.09 billion yuan, a year-on-year increase of 33.47%.

In addition, Evergrande Auto indicated that it has been striving to ensure the mass production of its Hengchi series model by June 22. The president of Evergrande Auto, Liu Yongzhuo, announced on Sunday that pre-sale of the Hengchi 5 model will be initiated in the near future. Accordingly, the first batch of sales and experience centers for the vehicle will be opened in 15 key cities across China, including Tianjin, Shanghai and Guangzhou.

SEE ALSO: Evergrande Auto’s Hengchi 5 Model to Start Pre-sale