Evergrande has new news!

Hengda Automobile received a strategic investment of about 500 million US dollars from Newton Group! An explosive news made Hengda and Xu Jiayin’s names re-appear on the hot search.

Hengda claims to receive $500 million strategic investment from Newton Group

On the night of August 14, Hengda Automobile issued an announcement to officially disclose the news. Hengchi Automobile officially revealed that the company received about 500 million US dollars in strategic investment from Newton Group headquartered in Dubai, United Arab Emirates.

It can be seen from the announcement that Hengda Group, Xu Jiayin and his wife Ding Yumei provided a total of 20.895 billion Hong Kong dollar loans to Hengda Automobile, and the implementation of debt-to-equity swaps became the equity of Hengda Automobile.

At the same time, Newton Group also issued a statement saying that it will invest $500 million in Hengda Automobile Strategy, accounting for 27.5% of the total number of issued common shares after the expansion, to accelerate the company’s development in the electric vehicle field.

Newton Group said that the proposed transaction is expected to be completed in the fourth quarter of 2023, subject to a number of conditions, including but not limited to the entry into force of Evergrande Group’s workout, the confirmation of debt repayment plans by certain creditors of Evergrande New Energy Vehicle Group, and the approval of relevant regulators and shareholders. In addition, the statement said that Newton Group will also assist Evergrande in exploring overseas markets and achieve the annual export of 30,000 to 50,000 Hengchi vehicles to the Middle East market.

Is Xu Jiayin divorced? Evergrande’s latest response

On Aug. 16, the "Xu Jiayin divorce" story circulated on the Internet. The reason was that in an announcement issued by China Evergrande on the night of Aug. 14, Ms. Ding Yumei was defined as "a third party independent of the company and its affiliated persons," and was not generally listed as Xu Jiayin’s spouse as before.

A Shanghai Securities Daily reporter asked people close to Evergrande to verify this, and the other party said that "I don’t know, there is no news".

Public information shows that Ding Yumei, Xu Jiayin’s wife, was born in an ordinary working family and received a good education. On October 16, 2019, Hurun Research Institute released the "2019 Hurun Female Entrepreneurs List", Ding Yumei ranked 26th with 17 billion yuan in wealth.

Previously, in the 2021 interim report released by China Evergrande, Ms. Ding Yumei still appeared as "Mrs. Xu".

What are the top gifters in the Middle East?

According to public information, Newton is a smart electric vehicle and sustainable energy promotion and application company headquartered in Dubai, UAE, and the first manufacturer in Abu Dhabi to obtain a new energy vehicle production license. According to its disclosure, the chairperson and CEO of Newton Group is Zhejiang businessperson Wu Nan, and most of the executives, including the CTO, are also suspected of being Chinese.

Newton was formerly known as Ikonik, an electric vehicle company in Tianjin, China. Ikonik has successively received investment from funds and industrial capital such as Jinsha River Venture Capital, Zhengwei Group, Yinghe Capital, and Pro Capital. In July 2019, after increasing the registered capital by 50 million yuan, Tianjin Ikonik New Energy Vehicle Co., Ltd. was renamed Tianjin Tianqi Group Co., Ltd. During the same period, it acquired the equity of Tianjin Meiya Automobile for nearly 870 million yuan and obtained the domestic automobile production qualification. It is worth mentioning that during the 2019 Shanghai Auto Show, Ikonik’s joint sister brand W Motors participated in the exhibition with its five models, but it did not achieve mass production as scheduled and disappeared.

In 2022, Newton announced that the company’s brand would be renamed Newton, and received $400 million in PIPE financing from institutional investors and strategic partners such as UAE Royal Asset Company and Zhejiang Jinhua Local State-owned Assets. In November last year, Newton Group listed on NASDAQ through Special Purpose Acquisition Company (SPAC), becoming the only electric vehicle company listed in the United Arab Emirates in the United States.

It is worth mentioning that since last year, Newton Group has made frequent moves in China. In June 2022, Newton Group registered and established Newton (Zhejiang) Automotive Co., Ltd., which is wholly-owned by Iconic, and the legal representative is Wu Nan. In September of the same year, Newton announced an investment of 10 billion yuan to build a new energy vehicle super factory in Jinhua City, Zhejiang Province. This is the first super factory invested by Newton Group in China. The total investment reached 10 billion yuan. The factory covers an area of more than 700 acres and is designed to have an annual output of 100,000 smart passenger vehicle core components. It is planned to be put into operation in 2024.

It should be noted that from the financial data disclosed by the Newton Group, the funds it holds are not enough to support its investment of 500 million US dollars in Hengda Automobile. According to the financial report, as of the end of 2022, Newton’s cash and cash equivalents are about 211.90 million US dollars, and the total liabilities are 71.97 million US dollars. The annual reports of the past three years also show that Newton has no revenue for three consecutive years and its losses continue to expand.

With the blessing of 500 million US dollars, it is still a question mark whether Xu Jiayin can "cause a dream" to come back to life. But recently, Middle Eastern capital has been eyeing Chinese electric vehicle companies. On June 20, NIO announced that it had received a strategic investment of about 1.10 billion US dollars (about RMB 7.90 billion) from CYVN Holdings, an investment institution owned by Abu Dhabi in the United Arab Emirates; in the same month, it was reported that the Saudi Investment Ministry and China Express signed an agreement worth 21 billion Saudi riyals (about RMB 40 billion).

For the Middle East "local tycoons" to keep an eye on China’s new car-making forces, some auto industry insiders told the 21st Century Business Herald reporter, "In fact, Middle Eastern countries and capital have basically lost opportunities in traditional oil vehicles, and in the context of green energy replacing traditional energy, up the ante investment in China’s new car-making forces is a normal reaction to find new investment directions."

Source: Shanghai Securities News 21st Century Business Herald

Editor: Yang Yang, Proofreader: Wang Haijuan, Editor in charge: Yu Lili

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Original title: "Hengda has new news!"

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