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Evergrande EV unit shares plunge after 16-month halt

Evergrande EV unit shares plunge after 16-month halt © Reuters. Test cars by Evergrande are parked outside the Evergrande New Energy Vehicle (NEV)’s research center, in Shanghai, China October 6, 2021. Picture taken October 6, 2021. REUTERS/Yilei Sun/File Photo

HONG KONG (Reuters) -Shares of China Evergrande New Energy Vehicle Group (NEV) plunged on Friday as trading resumed nearly 16 months after the stock was suspended pending the release of financial results.

Shares of the NEV unit of embattled property developer China Evergrande Group shed as much as 69% to HK$1 in early trading, down from HK$3.2 on its last closing date of April 1, 2022.

The firm reported on Wednesday a combined net loss of 71.12 billion yuan ($9.95 billion) for 2021 and 2022.

In a filing on Thursday, Evergrande NEV said it has fulfilled all the requirements laid out by the stock exchange to resume trading, including demonstrating that it had a viable and sustainable business with a sufficient level of operations and assets.

The NEV company, which has been under pressure since its parent entered a debt crisis in mid-2021, had previously warned it might have to wind up operations unless it obtained new funding.

In 2022, the firm had to delay mass production of its first flagship model, Hengchi 5. The firm said in June it that as of May, it had delivered more than 1,000 units of the EV, whose sales started in October last year.

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