Evergrande Automobile: A total of 324 Hengchi 5 vehicles have been delivered to customers, and a series of cost-saving measures are being carried out

Evergrande Motors announced on the Hong Kong Stock Exchange on the evening of December 30 that Hengchi 5 is in mass production and has delivered a total of 324 Hengchi 5s to customers. In addition, in order to save costs, the Group is carrying out a series of cost-cutting measures, including reducing the number of overall employees, arranging some employees to stop work, and some employees to reduce salaries, etc. The Group will continue to create favorable conditions for the mass production of Hengchi 5 with the utmost efforts.

Evergrande Hengchi New Energy Vehicle Holdings (Hong Kong) Limited, a wholly-owned subsidiary of the Company, received a statutory demand from a solicitor acting for a creditor under the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Chapter 32 of the Laws of Hong Kong , requiring the subsidiary to pay a total of EUR 4,684,520, alleging outstanding debts due and payable under the settlement agreement entered into between the subsidiary and the creditor. The statutory demand requires the subsidiary to repay the debt within three weeks from the date of service of the statutory demand (i.e. on or before 5 January 2023), otherwise creditors may file a winding-up petition against the subsidiary. The principal asset of the subsidiary is the equity interest in National Electric Vehicle Sweden AB, the Group’s Swedish subsidiary. The company is now seeking professional advice on the statutory demand letter, and will take all effective measures to protect the interests of the company and shareholders.