Evergrande Auto Releases 2026 Interim Financial Report, Total Liabilities at RMB 32.72 Billion, Exits Vehicle Manufacturing

On the morning of September 17, Evergrande Auto disclosed its unaudited interim financial results for the six months ended June 30, 2026, on the Hong Kong Stock Exchange. As of June 30, 2026, the Group’s total assets amounted to approximately RMB 182 million, and total liabilities stood at approximately RMB 32.722 billion, comprising borrowings of approximately RMB 16.283 billion and trade and other payables of approximately RMB 16.439 billion. During the reporting period, the Group recorded revenue of approximately RMB 9 million, gross profit of approximately RMB 0.5 million, and a net profit of approximately RMB 186 million, representing an increase of approximately RMB 7.71 billion compared to the same period last year. Evergrande Auto Group has completed its exit from vehicle manufacturing operations and is transitioning toward an asset-light business model, leveraging retained proprietary technologies related to electric vehicle batteries and automotive manufacturing. The Group is now primarily engaged in lithium-ion battery trading, which commenced sales during the reporting period and generated revenue of RMB 8.73 million. Evergrande Auto continues to be in discussions with an independent investor who has expressed interest in providing financing to support the Group’s basic operations and minimum working capital requirements, cover professional and intermediary fees, and meet expenses necessary to maintain its listing status. Furthermore, Evergrande Auto is currently negotiating with the joint and several liquidators of China Evergrande Group (in liquidation) regarding a comprehensive restructuring of the Group’s debt obligations. The majority of these debts are owed to China Evergrande Group (in liquidation), its subsidiaries, and other related parties of the Company. As of the announcement date, the Company has not received any notice demanding immediate repayment of these debts; China Evergrande Group (in liquidation) has indicated that it currently has no intention of initiating any liquidation proceedings against the Company.