On Friday night, the company had announced a "severe shortage of funds" due to which it had "suspended paying some of its operating expenses" and some suppliers had suspended supplying for projects.
"In view of the difficulties, challenges and uncertainties in improving its liquidity as mentioned above, there is no guarantee that the Group will be able to meet its financial obligations under the relevant contracts," it added.
The company said that while it was exploring different avenues to generate working capital, until now, "the Group has not entered into any legally binding agreement with any investor" and "it remains uncertain as to whether the Group will be able to consummate any such sale."
"If the said potential introduction of strategic investments and/or the potential sale of assets cannot materialize within a short period of time, the Group will lack further capital injection, which is expected to affect the daily operations of the Group, worsen its ability to pay employees' salary and/or other expenses... (and) impede the research and development progress of new energy vehicles and have a material adverse impact on the Group's mass production of new energy vehicles" it added.
The entry of
Evergrande New Energy Vehicle has yet to sell a single car but the company's promises attracted such a volume of investment that it achieved a market value of about
In another statement issued on Sunday,
Just over a year ago, Evergrande New Energy Vehicle Group Liu Yongzhuos said that the company's plan was to globally surpass rivals such as
"We are aiming to become the world's biggest and strongest EV maker in three to five years with much lower cost," he said. EFE
© 2021 EFE News Services (U.S.) Inc., source