China Evergrande NEV Trade Halted as Unit Faces Bankruptcy Liquidation in Shanghai

By Jiahui Huang

Trade in China Evergrande New Energy Vehicle's shares was halted in Hong Kong after one of its unit's creditors applied for bankruptcy liquidation in a Shanghai court.

Shares of the electric-vehicle unit of property developer China Evergrande Group fell 5.4% to 25 Hong Kong cents, the equivalent of 3 U.S. cents, before trade was halted early Thursday.

The halt came after a late Wednesday court statement that Shanghai-listed Zhejiang Chint Electrics had filed a winding-up petition for Evergrande New Energy Vehicle's Shanghai subsidiary in a local court. The court has scheduled a September 18 meeting for the case.

Zhejiang Chint Electrics said the company had failed to repay its debt on time, according to the statement.

China Evergrande New Energy Vehicle's Shanghai unit has a registered capital of about 3.01 billion yuan, equivalent to $423.2 million, according to data provider Wind.

In late July, creditors of two Guangdong-based China Evergrande New Energy Vehicle subsidiaries applied to a local court for bankruptcy and reorganization of the units. The two subsidiaries have combined registered capital of around $1.03 billion.

Evergrande New Energy Vehicle, which once had ambitions of competing with Tesla and becoming a top EV maker, had a market capitalization of more than $80 billion at its peak in April 2021.

Last week it reported a first-half net loss of 20.25 billion yuan, almost three times wider than the same period a year earlier.

Its parent company, Evergrande Group, was ordered to liquidate in late January by a Hong Kong court after the developer failed to reach a restructuring plan with creditors.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

September 04, 2024 23:12 ET (03:12 GMT)

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