On the evening of January 29, Evergrande Property (06666) and Evergrande Automobile (00708) respectively announced on the Hong Kong Stock Exchange that they had applied to the Stock Exchange to resume trading of the company's shares from 9 a.m. on January 30, 2024.
According to the announcements of Evergrande Property and Evergrande Automobile, the company's controlling shareholder, China Evergrande Group, was ordered to be liquidated by the Hong Kong High Court on January 29, 2024.
The two companies stated that other than the above disclosures, there is no other inside information that the companies need to disclose and that the board will closely follow the development of the above matters and will make further announcements on the progress of the relevant matters in due course.
As previously reported, Evergrande Property and Evergrande Automobile announced at noon on January 29 that the company's shares will temporarily stop trading on the Hong Kong Stock Exchange from 10:19 a.m. on January 29, 2024, pending the company's publication of an inside information announcement.
It is worth noting that Evergrande Property recently sued China Evergrande again to recover 11.4 billion yuan.
Evergrande Property recently issued an internal information announcement saying that the company's wholly-owned subsidiary has filed a lawsuit with the Intermediate People's Court of Guangzhou City, Guangdong Province regarding the enforcement of about 13.4 billion yuan (the same below) deposit pledge. On January 25, the company has received a notice from the court to formally accept the filing of the case.
According to statistics, Evergrande Property filed a total of 7 lawsuits, all of which were related companies of Evergrande, involving a total amount of more than 11.4 billion yuan.
At the same time, Evergrande Property also issued an announcement stating that the three subsidiaries, namely Jinbi Property *** hereinafter referred to as Jinbi Property), Evergrande Hengkang Property *** hereinafter referred to as Hengkang Property) and Guangzhou Jinbi Huafu Property *** hereinafter referred to as Jinbi Huafu), received a notice from the competent tax authorities that these companies recognized bad debt losses and made partial pre-tax deductions for 13.4 billion yuan of pledge execution funds in 2021, 2022 and 2023, and the company failed to provide sufficient supporting materials for bad debt losses. In 2021 and 2022, there is a total risk of underpayment of corporate income tax of about 6500 million yuan and related late fees, the notice requires Evergrande Property to correct the declaration.
Evergrande Property said that the company has fully reflected the tax payable in the 2021 and 2022 profit and loss statements. This correction declaration does not involve retrospective adjustment of the financial data of the previous period, and does not affect the net assets and profits of the relevant year.
*: Reading and Entrepreneurship Finance.