China Evergrande's electric-vehicle unit gets US$200 million from returning undeveloped land

China Evergrande’s electric-vehicle unit gets US$200 million from returning undeveloped land

China Evergrande New Energy Vehicle Group returned several undeveloped land plots to the Chinese government in exchange for 1.28 billion yuan (US$200 million) to alleviate its cash crunch and keep operations afloat.

The proceeds – some which have been confiscated by the government – will be used to fund construction projects, pay wages to migrant workers, and pay for any unreturned land parcels, the Hong Kong-listed company, also known as Evergrande Auto, said in an exchange filing Friday night.

The returned land, totalling 2.7 million square metres (28 million square feet), had been designated for seven industrial and residential property projects, Evergrande Auto said.

The funds provide a lifeline to the carmaker, which has so far unveiled nine EV models, none of which have progressed to mass production. The company said earlier that production would begin this month, with delivery slated for next year.

The survival of Evergrande Auto is also of significant importance to its cash-strapped parent, China Evergrande, which is aiming to shift its business focus from property development to EV manufacturing in 10 years, according to founder Hui Ka-yan.

Evergrande Auto unveiled a plan earlier this month to raise HK$500 million (US$64.2 million) through new shares to bankroll production of its EVs under the brand Hengchi, which means “ever running” in Chinese. The carmaker, which posted a loss of 4.8 billion yuan in the first half of the year, has filed for approval for the sales of its SUVs, government data showed.

Shares of Evergrande Auto fell 7.9 per cent to HK$4.06 on Friday, extending its decline to 55 per cent so far this year. The stock, dragged down by the debt crisis of China Evergrande, has vastly underperformed domestic rivals such as Xpeng and Li Auto.

Meanwhile, Hui is ramping up efforts to bail out China Evergrande, which has racked up more than US$300 billion in liabilities. The founder sold 1.2 billion Evergrande shares for HK$2.7 billion on Thursday, lowering his stake from 77 per cent to 68 per cent, according to data from the Hong Kong stock exchange.

China Evergrande’s shares tumbled 10 per cent to HK$2.50 on Friday. The stock has lost 83 per cent of its value this year.

News Related

OTHER NEWS

Shell looks at billions of investments in France

Photo: ANP Shell is looking at investment opportunities worth 4 billion euros in France. That says CEO Ben van Beurden in an interview with the French newspaper Le Figaro. According ... Read more »

Lufthansa would like 40% stake in Italian ITA

Photo: ANP The German aviation group Lufthansa would like to take a 40 percent stake in the Italian airline ITA Airways, the successor of the bankrupt Alitalia. That reports the ... Read more »

Crypto meltdown erases $1 trillion in value Bitcoin down 50% from November peak as risk-off sentiment batters cryptocurrencies

Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on motherboard. (Reuters File Photo) Bitcoin has now shed more than 50% from its record high in November ... Read more »

Dolo 650 maker: We did not expect this kind of popularity

Dilip Surana, chairman and managing director at Micro Labs Limited, is—with due respect to Adar Poonawalla, CEO, Serum Insitutute of India, and Bharat Biotech chairman Krishna Ella, the companies behind ... Read more »

Premji Invest backed Fabindia Files Papers For 2022 Listing; Joins Apparel Brand IPO Party

Leading ethnic wear and lifestyle retailer Fabindia which is backed by marquee investors including Azim Premji’s investment arm Premji Invest & Nandan Nilekani, has filed draft papers with Sebi to ... Read more »

S. Korea's Hanmi, Celltrion, and Dongbang to produce Merck's COVID-19 pill

Hanmi will manufacture the finished drug and produce ingredients. South Korea’s Hanmi Pharm Co., Celltrion Inc., and Dongbang FTL were among 27 drugmakers chosen to produce low-cost versions of Merck ... Read more »

Former CBI chief Fairbairn joins race to head Channel 4

Dame Carolyn Fairbairn is among the candidates being considered as the next chairman of the state-owned broadcaster as its potential privatisation looms, Sky News learns. Read more »

‘Takeover hunt for department store giant Kohl's: $9 billion bid on the table'

Insiders report this to Bloomberg news agency. The second-largest department store chain in the United States is under pressure from activist shareholders because it would underperform and the company would ... Read more »

Sources: US talks with Qatar about gas supplies to Europe

Photo: ANP The US government is in talks with Qatar about supplies of liquefied natural gas (LNG) to Europe if Russia were to invade Ukraine, causing European gas shortages. According ... Read more »

Hong Kong's home buyers snap up Henderson Land's The Harmonie flats, defying city's worst one-day explosion of new Covid-19 cases

Hong Kong’s property buyers turned out in droves, defying the city’s worst one-day explosion of new Covid-19 cases to snap up apartments at the first new housing project to be ... Read more »

Bonus rain at top US bankers: boss Morgan Stanley goes home with $35 million

The big boss at Morgan Stanley was paid a base salary of $1.5 million in 2021. On top of that came a cash bonus of $8 million and $5 million ... Read more »

Yes Bank posts 77% rise in December quarter profit on lower provisions, higher recoveries

yes-bank-300_36683164 Yes Bank on Saturday reported a 77% year on year growth in December quarter profit at Rs 266 crore as lower provisions and higher loan recoveries drove earnings at ... Read more »

Bloomberg: multi-billion dollar offer for major department store chain Kohl's

Photo: ANP The major American department store chain Kohl’s has received a takeover offer worth about $ 9 billion, converted almost 8 billion euros, from a group of investors. Insiders ... Read more »

Bitcoin rumbles further down: 25% fall in new year

On crypto platform Coindesk, bitcoin sees another 10% of its value evaporate to a position of $35,580 around 8 a.m. (Dutch time). This means that the digital currency has returned ... Read more »

Current economic landscape may not allow government to go for fiscal consolidation immediately: YES Bank chief economist

Read more »

Instagram's new subscription model: How it will aid Indian creators

While the features are being tested in the US, creators in India bet big on Instagram’s new subscription model. Instagram is testing three new subscription features under which followers can ... Read more »

Kombucha and the health benefits of tea drink loved by Lady Gaga, Kourtney Kardashian, Halle Berry and Gwyneth Paltrow

Do you want to stay young and healthy even if it means drinking a fermented tea that tastes like sweet-and-sour vinegar? Then kombucha is for you. Celebrities including Lady Gaga, ... Read more »

Impact of oil firms' exit from Myanmar limited 'A lot more pressure needed to defeat this junta for good,' says human rights activist

The TotalEnergies logo is seen on a charging station in La Defense on the outskirts of Paris. The French company announced in Friday that it would pull out of Myanmar. ... Read more »

Payments Council urges rollback of no-fee transaction policy for UPI and Rupay debit cards

The industry estimates a loss of Rs 5,500 crore due to the Zero-MDR norm. (Representative image) The Payments Council of India (PCI), the industry body for digital payments, yesterday said ... Read more »

More trouble for PTC India as independent director quits after three board exits in arm over corporate governance issues

After PTC India Financial Services (PFS) came under the scanner with three of its independent directors resigning citing lapses in compliance and corporate governance, an independent director at the parent ... Read more »

Market falls over 3% but BSE smallcap index hits new high, 33 stocks gain 10-44%

After a positive start for the week on January 17 the Indian benchmark indices remained under selling pressure for the next four session’s in the week ended January 21 in-line ... Read more »

Ombudsman: Return to Australia for a DigiD

In the end, thanks to the help of an official Australian government agency, he manages to have his AOW paid out through the SVB. But he would also like to ... Read more »

Hawkish comments from the Fed may further strengthen the dollar which may not bode well for commodities: Kotak Securities' Ravindra Rao

Commodities witnessed strong gains this week despite the dollar strengthening and equities weakening as rising inflationary pressure drew investors, said Ravindra Rao, vice-president, head of commodity research, Kotak Securities. Inflation ... Read more »

As economies limp out of pandemic, here's how CII wants policymakers to steer post-COVID recovery

Representative image Growth appears to be limping back after COVID battered economies around the world, thanks to policy support from governments as well as vaccination drives. However, to ensure that ... Read more »

Transforming a ghost village with hill-centric livelihood and tourism opportunities

Major Gorki Chandola is reviving traditional practices in agriculture, construction and tourism to sustainably develop his village. Photo by Archana Singh. India’s northern state of Uttarakhand, known as the Land ... Read more »

Mining on the shifty sands of Goan politics

Mining machinery at a Goa mine brought to a halt by Supreme Court of India’s February 2018 judgment. Photo by Meera Mohanty/Mongabay. In the run-up to the 2022 state elections, ... Read more »

Beijing lectures Alibaba, Tencent, other Big Tech firms on gig workers' rights despite progress from last year

Beijing has told 11 internet platforms including Alibaba Group Holding and Tencent Holdings to better protect gig workers’ rights as the government continues its scrutiny of Big Tech firms in ... Read more »

Clean energy startups innovate on products to aid farmers, rural areas

A three horse power solar panel installed in a village in Rajasthan by Agrivijay for irrigation works. Photo courtesy AgriVijay. Yash Tarwadi, 25, is a chemical engineer based in Surat ... Read more »

Energy major Shell sheds 'Royal Dutch' from name

Royal Dutch Shell | Headquarters: The Hague, Netherlands. Incorporated in the United Kingdom. (Photo: Reuters) Energy giant Shell has dropped from its name the ‘Royal Dutch’ part, which it had ... Read more »

Moneycontrol PRO & Espresso present Nifty Banker 2.0 on Saturday, 22nd January, at 8 pm, with Rohit Katwal on “Momentum Short - Index Option Selling using trend following on Nifty and Bank Nifty”

Nifty Banker 2.0 is India’s First Retail Index Traders Online Conference to be organised in the country. Some of the best index traders in India will share their deep trading ... Read more »

Why Always Hire A Professional and Experienced Tax consultant in vienna (Steuerberater Wien)

Accounting is, above all, strategic management by taking responsibility for drawing up the accounts. It is important to have this vision. Each year, accounting produces mandatory summary documents at the ... Read more »

NetEase apologises for ‘bad experiences' after fans of Harry Potter game revolt over Lunar New Year campaign

Chinese players of a video game based on the Harry Potter series of books by J.K. Rowling have staged an online revolt against NetEase, with their complaints about unfair game ... Read more »

Cryptocurrency crash wipes out more than US$1 trillion in market value

For bitcoin, there’s only been one constant recently: decline after decline after decline. And the superlatives have piled up really quickly. With the Federal Reserve intending to withdraw stimulus from ... Read more »

Moneycontrol Pro Weekender | Bubble Trouble 

Representative image Dear Reader, Jeremy Grantham, GMO’s chief investment strategist, has been warning for years about a bubble building up in the markets. In his latest missive, titled ‘Let The ... Read more »

Fed Launches Review of Possible Central Bank Digital Currency Officials solicit public comment, but are unlikely to decide soon whether to issue a government-backed cryptocurrency

“We look forward to engaging with the public, elected representatives, and a broad range of stakeholders as we examine the positives and negatives of a central bank digital currency in ... Read more »

Dry January? No thanks – it won't improve your health in the long run or solve alcohol-abuse problems

So, how’s your Dry January going? Probably not great if, like most people in Hong Kong, you’re trying to power through this most disheartening first month of 2022. Our administrative ... Read more »

Hellbound star Yoo Ah-in set for another Netflix Original series – K-drama casting latest

The eternal fight against injustice will be the theme for many upcoming K-dramas if the latest casting announcements are anything to go by, with top stars lining up to play ... Read more »

Cryptocurrency Prices Today: Bitcoin falls 7%, Ethereum sheds 9%

(Image: Reuters) The global cryptocurrency market capitalisation dropped from $1.88 to $ 1.7 trillion during the last 24 hours while the trading volume surged from $66.35 to $126 billion. The ... Read more »

Daily Voice | Budget 2022 likely to be more populist rather than being mindful of fiscal gap, says Amit Jain of Ashika Wealth

Amit Jain is the chief strategist of Ashika Group and co-founder of Ashika Wealth Advisory Amit Jain, chief strategist of Ashika Group and co-founder of Ashika Wealth Advisory, feels earnings ... Read more »

Hedging, a must know activity for risk management: Shubham Agarwal

We will look at understanding Hedging today. Financial dictionary defines Hedge as ‘an investment to reduce the risk of adverse price movements in an asset’. In simple words an additional ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic