Evergrande Shanghai NEV research unit records surge in registered capital

Shanghai (Gasgoo)- Evergrande Hengchi New Energy Vehicle Research Institute (Shanghai) Co.,Ltd. (called “Hengchi NEV Research Institute), a research arm of Evergrande Group's new energy vehicle business, saw its registered capital surge 900% to 1 billion yuan ($155.2 million) on October 8, according to the business information provider Tianyancha.

Photo credit: Hengchi

Founded in June 2019 and incorporated in Shanghai, Hengchi NEV Research Institute features a business scope that covers the R&D of technologies related to NEVs, computer software, communications, electric motors, and electronics, the production and sales of NEVs, auto parts, electronics products, and computer software, as well as the information system integration service. The company is wholly controlled by Evergrande New Energy Vehicle Investment Holding Group Ltd.

On September 25, China Evergrande New Energy Vehicle Group Limited (Evergrande Auto), the Hong-Kong listed electric vehicles firm of property giant China Evergrande Group, announced it had agreed with Haitong Security Co.,Ltd. to terminate the listing agreement after "due and careful consideration". Correspondingly, its proposed issue of RMB shares would not proceed further.

However, the reason leading to the suspension of domestic listing plan was not immediately clear.

In October 2020, Evergrande Auto first revealed its plans to go public on the Science and Technology Innovation Board (STAR Market) of Shanghai Stock Exchange. It had planned to sell no more than 1.6 billion shares and intended to use the proceeds to fund NEV projects and supplement working capital.