Updates with company statement, background in paragraphs 2-5
Feb 3 (Reuters) - China Evergrande New Energy Vehicle 0708.HK said on Monday it is struggling to attract strategic investors amid a severe liquidity crisis, which has hampered its operations and delayed essential audits for 2024.
"The tough conditions under which the new energy vehicle in Mainland China is operating has certainly not facilitated this (securing a strategic investor) process," the firm said.
The company, an electric vehicle $(EV)$ unit of debt-laden property developer China Evergrande 3333.HK, said that it is still looking for strategic investors as it seeks solutions to stabilize operations and address its liquidity crisis.
While it has also reduced its headcount to cut costs, it said its limited funds are now focused on maintaining basic operations including maintenance of its production plant and machinery.
The EV maker had initially planned to compete with Tesla TSLA.O and even held a market valuation surpassing that of Ford Motor F.N but has since become entangled in the debt crisis affecting its parent.
(Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)
((Roshan.Thomas@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.