[Description]: Recently, a news that has attracted widespread attention came that Evergrande Automobile, which has lost as much as 84 billion yuan in two years, is in trouble again. According to the Daily Economic News, the Newton Jiyuan share subscription agreement and the debt-to-equity swap subscription agreement have expired on December 31, 2023, Xu Jiayin has proudly said that Evergrande Automobile will become the world's largest and strongest, and this goal has now become an unattainable dream?
In China's automotive industry, Evergrande Automobile has always been regarded as one of the important giants, and Newton Jiyuan has attracted much attention as a local tyrant enterprise in the Middle East. Once, the cooperation between the two sides seemed to be like a beacon illuminating the way forward for Evergrande Automobile, however, the reality cruelly made people see the loss of hope. The invalidation of the Newton Jiyuan share subscription agreement and the debt-to-equity swap subscription agreement has raised questions about the future development of Evergrande Automobile.
Evergrande said in the announcement that it will continue to negotiate with the parties and other stakeholders on the key terms of the revised agreement. The news gives a glimmer of hope, but it also makes people wonder if the new cooperation can be achieved as expected. After all, the two companies had vowed to build the world's leading car brand, and now the lapse of the agreement has made that goal even more difficult.
It is worth noting that Evergrande Automobile has faced the pressure of huge losses over the years, and the loss figure of 84 billion yuan is even more shocking. This figure is a heavy burden for any company, and it is even worse for Evergrande Automobile. In this regard, the industry generally believes that Evergrande Automobile urgently needs financial support, otherwise it will be difficult to get out of the predicament.
Coincidentally, as an important investment group in the Middle East, Newton Market Park may become the focus of heated discussions in the market as to whether it will still give Evergrande Auto support after the expiration of the cooperation agreement. Some industry insiders pointed out that the investment in Newton Park is very important for Evergrande Automobile, and once the support is not in place, the future development of Evergrande Automobile will face greater challenges.