Middle East capital invested 500 million dollars in Hengda Automobile! Is Hengchi Automobile ＂branching＂ again？

On the evening of August 14, Evergrande announced: "Received a strategic investment of about 500 million US dollars from the Newton Group (Nadaq: NWTN) headquartered in Dubai, United Arab Emirates, to start a new journey." According to the announcement, another 600 million RMB transition funds will be received one after another five working days after the announcement.

Newton Group is the first car company listed by UAE New Energy in the United States. The IPO time is November 2022. The group is committed to providing high-end electric vehicle products and green energy solutions to global users. In addition to injecting capital into Evergrande Automobile, the group will also assist Evergrande Automobile to develop overseas markets and allow Evergrande Automobile to export to the Middle East market.

Hengchi and Middle Eastern capital can effectively solve the current financial difficulties faced by Hengda Automobile. The funds will be fully used for the Tianjin factory, and the production and sales of Hengchi 5 will be fully advanced. According to the official statement, the design of Hengchi 6 and Hengchi 7 has been frozen, and a large number of tests have been carried out to verify, and they are currently fully promoting research and development and mass production.

It is worth mentioning that shortly after Hengda Automobile released its announcement, some media "bottomed out" Newton Group, and it is reported that the founder of the group is41-Year-old Chinese Wu Nan, the predecessor of the company is actually ICONIQIconic (a new energy vehicle brand founded in China in 2014).

It is reported on the Internet that many executives of the group are suspected ofWith a Chinese background, it is rather outrageous that the company has no revenue from 2020 to 2022. At the end of 2022The company’s cash and equivalents are only about $210 million.

The previous development of Hengchi Automobile was not smooth. Although the Hengchi 5 was released as early as mid-2022, the sales of the model fell far short of expectations. At the end of the same year, there were still problems with the operation of the Hengchi Automobile factory, and rumors of work stoppages and pay were constantly exposed.

In March this year, Hengda Automobile announced that it urgently needs to obtain 29 billion financing, otherwise the company will face the risk of stopping production. In April, Hengchi Tianjin factory officially stopped production. However, it resumed work and production in May. According to the relevant announcement released by the official, as of the end of May 2023, Hengchi 5 has delivered 1,000 vehicles.