Xiaomi officially denied rumors of acquiring Evergrande Auto, a key affiliate of the large real estate developer Evergrande.
On the 30th, a Xiaomi spokesperson stated on their social media (SNS), "Xiaomi Auto has no plans to acquire or manage Evergrande Auto, nor have we taken any related actions."
Earlier, the Hong Kong Stock Exchange disclosed that 3.145 billion shares (29%) of Evergrande Auto were scheduled to be sold soon, and the buyer would have the option to purchase an additional 3.203 billion shares (about 29.5% of issued shares) later.
In the market, rumors spread that the undisclosed buyer was Xiaomi. Xiaomi was also at the center of rumors in 2021 about negotiating to acquire a 65% stake in Evergrande Auto. At that time, local media reported that Evergrande was discussing handing over Evergrande Auto, its electric vehicle affiliate with only capital input and no concrete results, to Xiaomi.
This stock sale news came amid demands from Chinese local governments for Evergrande Auto to return a total of 1.9 billion yuan in incentives and subsidies. Trading of Evergrande Auto shares was suspended on the morning of the 17th and resumed on the morning of the 27th.
Meanwhile, in March, Evergrande Auto announced it would halt production at its Tianjin plant due to funding shortages and other reasons. Evergrande Auto's first model, the Hengchi 5, had produced 1,700 units as of December 31 last year, with 1,389 units delivered to customers.
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