China Evergrande's EV unit says struggling to attract investors amid liquidity crisis (updated)

China Evergrande New Energy Vehicle

03/02/2025 12:33

(Updates with company statement, background in paragraphs 2-5)
       Feb 3 (Reuters) - China Evergrande New Energy Vehicle
 0708.HK  said on Monday it is struggling to attract strategic
investors amid a severe liquidity crisis, which has hampered its
operations and delayed essential audits for 2024.
    "The tough conditions under which the new energy vehicle in
Mainland China is operating has certainly not facilitated this
(securing a strategic investor) process," the firm said.
    The company, an electric vehicle (EV) unit of debt-laden
property developer China Evergrande  3333.HK , said that it is
still looking for strategic investors as it seeks solutions to
stabilize operations and address its liquidity crisis.
    While it has also reduced its headcount to cut costs, it
said its limited funds are now focused on maintaining basic
operations including maintenance of its production plant and
machinery.
    The EV maker had initially planned to compete with Tesla
 TSLA.O  and even held a market valuation surpassing that of
Ford Motor  F.N  but has since become entangled in the debt
crisis affecting its parent.

 (Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank
Dhaniwala and Sonia Cheema)
 ((Roshan.Thomas@thomsonreuters.com;))