On January 1, Evergrande Motor announced that the Newton Group's share subscription agreement had expired.。

As mentioned in the announcement, the respective deadlines for the Newton Group Share Subscription Agreement and the Debt-to-Equity Subscription Agreement are December 31, 2023。However, prior to the closing date, the contracting parties to the Newton Group Share Subscription Agreement and the Debt-to-Equity Subscription Agreement did not agree to extend the closing date。As a result, the Newton Group Share Subscription Agreement and the Debt-to-Equity Subscription Agreement expired on December 31, 2023。

Evergrande said that the contracting parties to the Newton Group Subscription Agreement and the Debt-to-Equity Subscription Agreement, as well as certain stakeholders, have been and will continue to consult on amending certain key terms of the proposed transaction and debt-to-equity conversion.。

The two agreements mentioned by Evergrande Automobile were signed in August 2023.。

The Newton Group subscription agreement refers to the approximately $500 million strategic investment that Newton Group, a U.S.-listed company, intends to inject into Evergrande Automotive.。At the same time, Newton Group provided three guaranteed interest-free transitional funds for Evergrande Motor (total RMB 600 million)。

Another debt-to-equity swap agreement means that creditors such as Evergrande Group and Xu Jiayin offset the 208 debt owed by Evergrande Motor by subscribing for new shares of Evergrande Motor..HK $9.5 billion in debt。

Affected by the above news, Evergrande Motor today (January 2) opened sharply lower, the largest intraday decline of more than 18%。Evergrande Motor down 11 at close.76%, reported 0.HK $45。

Newton Group's "breach of contract," in fact, there are signs of early。

According to Evergrande Motor's announcement on October 8 last year, the company received a letter from Newton Group on September 29.。Newton Group states that in view of the suspension of trading of its shares announced by Evergrande on 28 September 2023, together with the recent series of changes in China Evergrande Group, there is significant uncertainty, which in turn will also create significant uncertainty about the share subscription agreement and the proposed transaction.。According to the share subscription agreement, the completion of the debt restructuring of Evergrande Group and a series of other prerequisites are very important prerequisites for delivery.。In such event, Newton Group suspends its obligations under the Share Subscription Agreement。

At the same time, Newton Group suspended the provision of the second and third transitional funds to Evergrande Motor (a total of RMB 400 million).。Although the letter does not constitute a notice of termination of the share subscription agreement, Newton Group still requires Evergrande Motor to make a clear response to two pieces of information involved in the agreement: first, the debt restructuring plan of Evergrande Group involved in the share subscription agreement needs to be readjusted and there are plans to launch a new restructuring plan;。

At the moment, Evergrande is not yet able to give a clear answer to these two pieces of information to the Newton Group.。

Newton Group (NWTN) is a green energy company incorporated in the Cayman Islands in which the UAE National Sovereign Fund holds a portion of the shares.。Newton Group was listed on the Nasdaq Stock Exchange in November 2011 and was the first UAE New Energy company to list in the United States.。The company is mainly engaged in the development and commercialization of high-end electric vehicle products and green energy solutions, and currently has a vehicle assembly plant in Abu Dhabi。It is understood that in addition to new energy vehicles, Newton Group also laid out photovoltaic power generation, green hydrogen production and energy storage and other clean energy industry chain, footprint expanded to the Middle East, North Africa, China and other Asian and European countries。

Regarding the choice of Evergrande, Newton Group had said at the time that it believed Evergrande could help meet the demand for electric vehicles in the Middle East, including the UAE。It is reported that the Newton Group will assist Evergrande Motor to explore overseas markets, to achieve annual exports to the Middle East market 30,000-50,000 Hengchi cars。

Following the signing of the share subscription agreement with Newton Group, Evergrande Automobile has stated that it intends to transfer the net proceeds from the share subscription (approximately 38.HK $300 million) for the development, production and sales of vehicles and the repayment of transitional support funds.。

By the end of May 2023, more than 1,000 Hengchi 5 models had been delivered.。Although sales were poor, Evergrande Motor was once confident after the Newton Group's capital injection, boasting that the company's next goal was to launch and produce the HSI 6 and HSI 7.。

Now, Evergrande Motor has been "broken" by the big gold owner, and the launch of Hengchi 6 and Hengchi 7 will probably be postponed indefinitely.。Where Evergrande will go in the future is still unknown。