Shares of Evergrande NEV Group traded in Hong Kong have pulled back about 96 percent from their all-time high at the end of February last year.
Chinese property developer Evergrande Group's car-making unit has received final regulatory approval to sell its first production vehicle, removing one of the most significant uncertainties about its progress.
Evergrande New Energy Vehicle Group's (Evergrande NEV) SUV Hengchi 5 was included in this year's second batch of vehicles allowed to be sold in China, according to an announcement published last week on the official website of the Chinese Ministry of Industry and Information Technology (MIIT).
Inclusion in the list is the last regulatory process before a model can begin sales in China, usually several months before its official launch.
Evergrande NEV's Hengchi 5 was expected to be included in the list last year, but suffered a setback.
Last November 9, the MIIT released a preliminary list of models that would be allowed to be sold to seek public feedback, with a deadline of November 16.
Hengchi 5 was included at the time, containing the models HDE6470BEVA1F and HDE6470BEVA0F.
However, both models disappeared from the final list released by the MIIT on December 8 last year, for reasons unknown.
On January 12 of this year, Evergrande NEV announced that the first production vehicle of the Hengchi 5 had rolled off the production line, 12 days ahead of schedule.
On February 11, the MIIT released the latest list of vehicles that will be allowed to be sold for public comment, and two versions of the Hengchi 5, HDE6470BEVA1F and HDE6470BEVA0F, were included.
The public can comment on the list between February 11-18. The latest list published by the MIIT mentioned above is the official list at the end of the comment period.
Evergrande NEV launched the Hengchi brand in August 2019, and it has already announced nine of the 14 vehicles it has designed.
The company has car production plants in Guangzhou, Shanghai and Tianjin. However, with the outbreak of funding chain problems, only the Hengchi 5 and Hengchi 6 projects are being retained, with the faster-moving Hengchi 5 to be launched first, according to a report by local media outlet LatePost in October last year.
According to the previous Evergrande NEV model plan, the Hengchi 5 is positioned as an A-class SUV priced below RMB 200,000 ($31,550), making it a low-positioned and inexpensive model for the Hengchi family.
At the end of February last year, Evergrande NEV's (HKG: 0708) stock traded in Hong Kong once rose to a record high of HK$72.45. But the stock has pulled back sharply since then, with the latest price of HK$3.15 a 96 percent retracement from its all-time high.