initialdarcade| Evergrande Automobile (00708.HK): It is scheduled to be sold by a series of potential sellers including Evergrande Health Industry Group and resumed trading on May 27

Gelonghui May 26 丨 Evergrande Automobile (00708initialdarcade.HK) announced that on May 16, 2024, the company had learned that the joint and individual liquidators were and on behalf of China Evergrande Group (in liquidation), Evergrande Health Industry Group Co., Ltd., and Acelin Global Limited(collectively referred to as the potential sellers), and a person independent of the company and its connected persons (as defined in the Listing Rules) to the best of the company's directors 'knowledge, knowledge and belief after making all reasonable inquiriesinitialdarcadeA third-party buyer (potential buyer) entered into a term letter pursuant to which the potential seller and the potential buyer may enter into a final sale and purchase agreement for the purchase and sale of shares in the company held by the potential seller.

As at the date of this announcement, potential sellers held a total of 6.348 billion shares (accounting for approximately 58.5% of all issued shares)(potential shares for sale). Subject to the conclusion of the sale and purchase agreement and subject to its terms and conditions, it is proposed that 3.145 billion potential sale shares (representing approximately 29.0% of all issued shares as at the date of this announcement) will be acquired immediately, and 3.203 billion potential sale shares (representing approximately 29.5% of all issued shares as at the date of this announcement) will become the subject of an exercisable option by the potential buyer for a certain period after the date of the sale and purchase agreement.

The Company has also learned that the terms and conditions mentioned a credit agreement under which the potential buyer (or another party designated by the Company with its consent) will provide credit to the Company to support the Group's continued operation and development of the Group's electric vehicle business. At present, the group is seriously short of funds. The Group's Tianjin factory has no longer been in production since the beginning of this year. As of the date of this announcement, production has not yet resumed at the Group's Tianjin factory.

After the sale and purchase agreement is signed, a mandatory general offer obligation may be triggered. For the purposes of the Takeovers Code, the offer period begins from the date of this announcement.

The company will apply to the Stock Exchange to resume trading in the company's shares on the Stock Exchange starting from 9:00 a.m. on May 27, 2024.