China Evergrande New Energy Vehicle said on Monday it is facing difficulties in securing strategic investors due to a severe liquidity crisis, which has disrupted operations and delayed key 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 company stated.
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The electric vehicle (EV) unit of embattled property developer China Evergrande (3333.HK) remains in search of investors as it seeks to stabilize its operations and address ongoing financial struggles.
To cut costs, the company has reduced its workforce, but with limited funds, it is now prioritizing basic operations, including the upkeep of its production facilities and machinery.
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Evergrande’s EV ambitions once positioned the firm as a potential competitor to Tesla (TSLA.O), and at its peak, its market valuation surpassed that of Ford Motor (F.N). However, the company has since been caught in the broader debt crisis affecting its parent, significantly hindering its progress.
