Evergrande New Energy Vehicle Faces Major Administrative Penalty

China Evergrande New Energy Vehicle Group Ltd has received administrative penalties from local authorities. The company is required to return RMB1.9 billion in incentives and subsidies and halt production and sales of new energy passenger vehicles. These decisions could significantly impact the company's financial position and operations.

China Evergrande New Energy Vehicle Group Ltd: * RECEIPT OF LETTER FROM RELEVANT LOCAL ADMINISTRATIVE AUTHORITY AND NOTICE FROM ANOTHER RELEVANT AUTHORITY

* RELEVANT SUBSIDIARIES HAVE RECEIVED WRITTEN DECISION OF ADMINISTRATIVE PENALTY * EVERGRANDE NEW ENERGY VEHICLE (TIANJIN) CO RECENTLY RECEIVED A NOTICE FROM RELEVANT AUTHORITY

* LOCAL ADMINISTRATIVE AUTHORITY CONSIDERED THAT RELEVANT SUBSIDIARIES HAVE COMMITTED BREACH OF CONTRACTS * NOTICE COULD HAVE A MATERIAL IMPACT ON FINANCIAL POSITION AND OPERATIONS OF CO

* LOCAL ADMINISTRATIVE AUTHORITY DECIDED TO TERMINATE THREE OF RELEVANT AGREEMENTS * ADMINISTRATIVE AUTHORITY DECIDED SUBSIDIARIES RETURN RELEVANT ADMINISTRATIVE AUTHORITY INCENTIVES AND SUBSIDIES

* INCENTIVES AND SUBSIDIES GRANTED IN AGGREGATE AMOUNT OF RMB1.9 BILLION WITHIN 15 DAYS FROM DECISION TO BE RETURNED * AUTHORITY ORDERED TIANJIN EVERGRANDE TO STOP PRODUCING AND SELLING NEW ENERGY PASSENGER VEHICLE PRODUCTS

* DECISIONS IF IMPLEMENTED WOULD RESULT IN CO EXPOSED TO RISKS OF COMPULSORY RESUMPTION OF LAND OF RELEVANT PLANTS FOR REPAYMENT OF INCENTIVES Further company coverage: