Staff Reporter
China Evergrande New Energy Vehicle (HK:3333) is grappling with significant challenges in attracting strategic investors due to a severe liquidity crisis that has disrupted its operations and delayed critical audits for 2024.
“The difficult landscape for new energy vehicles in Mainland China has certainly complicated our efforts to secure strategic investors,” the company stated.
As the electric vehicle (EV) arm of the financially troubled property developer China Evergrande, the unit is actively seeking strategic investment to stabilize its operations and navigate its liquidity issues. In a bid to cut costs, the company has also reduced its workforce, directing its limited resources toward essential operations, including the maintenance of its production facilities and machinery.
Initially, the EV maker aimed to compete directly with industry leaders like Tesla (NASDAQ:TSLA) and once boasted a market valuation that exceeded that of Ford Motor (NYSE:F). However, it has since become ensnared in the broader debt crisis affecting its parent company.
