Hengda Automobile: The relevant local administrative departments require the return of various incentives and subsidies that have been issued totaling about 1.90 billion yuan

On June 11, Hengda Automobile (00708.HK) announced in the Hong Kong Stock Exchange today that it has recently received further administrative treatment decisions issued by relevant local administrative departments, mainly including the cancellation of three of the relevant agreements; the relevant subsidiaries have returned the awards and subsidies issued to the relevant local administrative departments within 15 days from the date of receipt of the administrative decision, totaling approximately RMB 1.90 billion yuan. If the above decision is finally implemented, the Group will have the risk that the relevant factory land will be forcibly recovered, and the buildings and equipment on the ground will be used to repay the rewards and subsidies, which will then have a significant impact on the financial status and operation of the company or the relevant subsidiaries.