EVERGRANDE temporarily lifts delisting crisis! Application for resumption of trading next Monday, EVERGRANDE's three listed companies will fully resume trading.

On the evening of Friday, August 25, Beijing time, the EVERGRANDE issued an announcement stating that it had completed various resumption guidelines and had applied to the Hong Kong Stock Exchange to officially resume trading from 9 am on August 28 (that is, next Monday). Some analysts pointed out that 17 months and more than 500 days have passed since the EVERGRANDE was suspended on March 21, 2022. According to the Hong Kong Stock Exchange's "18-month delisting" institutional arrangement, the company must resume trading before September 20 this year. Otherwise, it will be delisted from Hong Kong. The resumption application indicates that EVERGRANDE, which used to be China's largest real estate developer based on contract sales, has temporarily lifted the delisting crisis and **will enable three listed companies in the EVERGRANDE series (EVERGRANDE, EVERG SERVICES and EVERGRANDE Motor) to fully resume trading. * *! ## * * The EVERGRANDE said that it had sufficient business operations and sufficient assets to support its operations. In the first half of the year, the group's total assets were about 1.74 * * * trillion yuan * *. The EVERGRANDE resumption guidelines include: publishing all unpublished financial results stipulated in the listing rules and resolving any matters with audit reservations; Independent investigation into the enforcement of the pledge guarantee of $13.4 billion SERVICES by EVERG, a major subsidiary, publication of findings and appropriate remedial action, etc. The EVERGRANDE also stated that in order to comply with the requirements of Rule 13.24 of the Listing Rules, the Company believes that it has sufficient business operations and assets of sufficient value to support its operations. The announcement shows that in the first half of this year, the EVERGRANDE achieved contract sales of about 33.413 billion yuan, contract sales area of 5.115 million square meters, and cumulative sales receipts of about 27.1 billion yuan. The total assets of the Group as at 30 June 2023 were approximately $1.74 trillion. The company to stabilize the operation, risk as the first priority, with the greatest efforts to actively promote the work of the construction, to achieve the full resumption of 732 construction projects, last year a total of 301000 sets of construction. The South China Sea Flower Island Cultural Tourism Project has been operating steadily, receiving more than 7.6 million tourists in total. As of June 30, 2023, the group has a land reserve of 0.19 billion square meters and has participated in 78 old renovation projects, including 55 in Dawan District (34 in Shenzhen) and 23 in other cities. According to the EVERGRANDE, the company's current working capital sources are mainly loans from local governments, project disposal income, stock of regulatory funds and daily operating sales income. In addition, the EVERGRANDE plans to amend the articles of association at the annual general meeting to be held to comply with the provisions of Appendix 3 of the revised listing rules. ## * * EVERGRANDE Auto and EVERG both share prices halved after the resumption of trading in SERVICES. The market is concerned about EVERGRANDE performance and overseas debt restructuring * * according to China Fund News and other media. In order to resume trading smoothly, EVERGRANDE reissued the financial results for 2021, the first half of 2022 and the whole year in one lump sum on July 17. Although the loss in 2022 has been significantly reduced, the EVERGRANDE has a total loss of 812 billion yuan in 2021 and 2022. The total liabilities as of the end of last year are 2.44 trillion yuan, excluding contract liabilities, which is 1.72 trillion yuan, and the total assets are about 1.84 trillion yuan. With regard to the EVERGRANDE financial report, the new auditor, who was replaced in January this year, was of the opinion that there were a number of uncertainties in the continuing operation of the EVERGRANDE and that it was not possible to express an opinion, but that all other aspects of the financial statements had been prepared in accordance with the disclosure requirements of the relevant regulations. The previous auditor, PricewaterhouseCoopers (PricewaterhouseCoopers), has also taken various measures to resolve a number of issues raised in his resignation letter. Earlier on Monday, August 21, Japan, EVERGRANDE also released the main results of internal control evaluation and review of certain issues raised by the former auditor, saying that the internal control required by the additional resumption guidelines had been reviewed and basically improved, paving the way for a formal application for resumption of trading on Friday. **Observers are generally concerned about the performance of the share price after the resumption of trading in EVERGRANDE. * * EVERGRANDE Motor, which had been suspended for about 16 months, resumed trading on July 28, plummeting nearly 70% on that day, while EVERG SERVICES, which had been suspended for 17 months, resumed trading on August 3, down nearly 50% on that day. Before the suspension, EVERGRANDE Hong Kong stocks had fallen to HK $1.65 per share, with a total market capitalization of about HK $21.8 billion. First Finance and Economics believes, after crossing the resumption mark, another important hurdle in EVERGRANDE is overseas debt restructuring:> the debt restructuring plan proposed in March this year was approved by the Hong Kong court in July, and creditors will vote on the offshore debt restructuring plan at the end of August. Recently, EVERGRANDE has also conducted bankruptcy protection in the US bankruptcy court in order to create good conditions for the adoption of the offshore debt restructuring plan. Whether the foreign creditors accept the restructuring plan is crucial to the fate of the EVERGRANDE. ## * * EVERGRANDE Auto reduced losses by 48.6 in the first half of the year * * * *, net debt fell to 328 * * * billion yuan, completed the real estate business divestiture and debt reduction 431 * * * * billion * * * At the same time as the EVERGRANDE announcement of application for resumption of trading, its electric car company EVERGRANDE Auto also announced its results in the first half of 2023, with an income of 0.155 billion yuan, a net loss of 6.873 billion yuan and a year-on-year-year-on-year decrease of 48.6, of 2.09 billion yuan. As of June 30, the net debt fell to 32.84 billion yuan, and the debt reduction of 43.1 billion yuan during the reporting period was mainly due to the completion of the divestiture of the real estate business. Among the 6.87 billion losses, EVERGRANDE Motor said that the divestiture of real estate projects completed on May 12 had a loss of 1.061 billion yuan, non-operating losses such as asset disposal and asset impairment were 3.716 billion yuan, and operating losses were 2.096 billion yuan. As of June 30, EVERGRANDE Auto had total assets of about 42.852 billion yuan and liabilities of 75.692 billion yuan. Next, EVERGRANDE Auto will reduce its debt by 17.3 billion yuan through debt-to-equity swaps. After the completion of the debt-to-equity swap, EVERGRANDE Automobile will also complete the debt conversion work to solve the problem of "insolvency. Shanghai Securities News · China Securities Network said,EVERGRANDE Automobile has completed the divestiture of its real estate business, reduced its net debt by 43.1 billion yuan, and will reduce its debt by 17.3 billion yuan through debt-to-equity swaps. This means that EVERGRANDE Motor has not only become a pure new energy vehicle company, but will also reduce its net debt by more than 60 billion yuan.! At the same time, the increase in revenue was mainly due to the start of sales of Hengchi 5. Sales of automobiles and auto parts increased from 0.29 million yuan in the same period last year to 113.37 million yuan, and another 27.98 million yuan in technical service revenue. The Group continues to focus on the high-quality production and delivery of Hengchi 5, with more than 760 units of all pre-sale orders delivered during the reporting period. In the future, the Group will fully promote the mass production and delivery of Hengchi 5. Earlier, on August 14, EVERGRANDE Motor announced that it had obtained the first US $0.5 billion strategic investment of the US listed company Newton Group, which is held by the UAE National Sovereign Fund, and another 0.6 billion yuan of transitional funds will start to arrive within 5 working days after the announcement. All the war investment funds are used to EVERGRANDE the Tianjin factory of automobiles to ensure the normal production of Hengchi 5 and the successive mass production of Hengchi 6 and 7.