Shares in the electric vehicle arm of embattled property developer China Evergrande Group plunged 68% as trading in the company resumed on Friday after a nearly 16-month suspension, reports Nikkei Asia. Trading of China Evergrande New Energy Vehicle Group on the Hong Kong Exchange had been halted since March 31, 2022, due to the company’s failure to publish its 2021 full-year financial results by that date.
The suspension was lifted on Friday morning after the company announced its financial results for 2021 and 2022 late Wednesday evening.
The Evergrande EV unit has been deep in the red for the past two years, according to the belated results. It logged a net loss of RMB 29.7 billion ($4.1 billion) for 2022 and a RMB 56.5 billion loss for 2021, bringing the total loss for the two years to around $12 billion. The carmaker’s net worth remained negative, and cash flow was under continued strain. Cash and cash equivalents totaled around 200 million yuan at the end of 2022.