Evergrande Auto to Raise HK $500 Million for NEV R&D
Evergrande Auto, the automobile manufacturer under Chinese real estate developer Evergrande Group, announced on Wednesday that it had signed an agreement with its placement agent on Tuesday. The agreement comprises an issuance of about 175 million shares at HK $2.86 per share, with an expected total proceeds of about HK $500 million.
The number of shares placed by the company account for about 1.79% of the total issued shares of Evergrande Auto and about 1.76% of the total issued shares after the expansion.
The proceeds will be used for the R&D and manufacturing of the Evergrande’s new energy vehicles, and will also help lay the foundation for the production of the company’s Hengchi NEV. Earlier, Liu Yongzhuo, President of Evergrande Auto, said that the Hengchi 5 will be rolled off the production line in Tianjin plant in early 2022.
Evergrande Auto’s Hengchi 5 has already been listed in the latest catalogue issued by China’s Ministry of Industry and Information Technology on Tuesday. This model is available in blue and black, and will be launched in a few months’ time. Being listed in the MIIT catalogue is the last major regulatory procedure for vehicles to be sold in China.
The declaration suggests that the Hengchi 5 features a motor produced by UAES, with a maximum power of 150kW and a maximum speed of 180km/h. Its energy storage devices are provided by CATL, while its energy storage device is a ferrous lithium phosphate battery.
