baccarategg| Evergrande Automobile (00708.HK) subsidiary received a request letter from relevant local administrative departments and was required to return approximately 1.9 billion yuan in rewards and subsidies awarded.

Gelonghui May 22 丨 Evergrande Automobile (00708baccarategg.HK) AnnouncementbaccarateggThe company's subsidiary, Evergrande New Energy Vehicle Investment Holding Group Co., Ltd.("Evergrande Automobile Holdings" and subsidiaries of other companies (collectively referred to as "relevant subsidiaries") recently received a letter issued by relevant local administrative departments. The main contents of the letter are hereby announced as follows:

As the company failed to perform its contractual obligations in accordance with the relevant terms of the relevant agreements, the relevant local administrative departments, in accordance with the Civil Code of the People's Republic of China and other Chinese laws and regulations, plan to require the relevant subsidiaries to: (1) cancel the relevant agreements;(2) return to the relevant local administrative departments the various awards and subsidies issued totaling approximately RMB 1.9 billion, and the relevant subsidiaries shall bear joint liability to each other ("Letter Requirements"). Currently, relevant subsidiaries plan to send letters to relevant local administrative departments for coordination.

If finally implemented, the requirements of the above letter will have a material adverse impact on the financial status and operations of the company or each relevant subsidiary. The company will perform its disclosure responsibilities in accordance with the provisions of the Listing Rules in a timely manner, and require relevant subsidiaries to actively communicate and properly handle the matter in accordance with the guidelines in the letter.

Continue to suspend trading.