Liu Yongzhuo, executive director of Evergrande Automobile, was asked to recall! The annual salary has exceeded 68 million

2024-06-27 23:31:53

Liu Yongzhuo, executive director of Evergrande Automobile, was asked to recall! The annual salary has exceeded 68 million

National Business Daily

2024-06-27 22:42The official account of National Business Daily

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01 Liu Yongzhuo, executive director of Evergrande Automobile, was asked to be removed by Evergrande Health because he had been criminally detained in accordance with the law on suspicion of violating the law.

02 Evergrande Automobile's 2023 financial report shows that the cumulative loss has reached 110.841 billion yuan, of which the loss in 2023 will be about 12 billion yuan.

03 Since Evergrande Automobile's cash and cash equivalents were 129 million yuan, which was far from enough to cover the borrowings, the company's total assets were 34.851 billion yuan and total liabilities were 72.543 billion yuan.

04Evergrande Health requested the Board of Directors to convene a general meeting of shareholders immediately to consider and approve the proposed appointment of three directors, Cai Weikang, Liang Jiajin and Wang Kenan, and the ordinary resolution to remove Liu Yongzhuo and Qin Liyong.

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Editor: Zhang Jinhe

On the evening of June 27, Evergrande Automobile (HK0708, stock price HK$0.425, market value HK$4.609 billion) announced that Evergrande Health requested the board of directors to immediately convene a general meeting of shareholders and hold a general meeting of shareholders within the time specified in Article 567 of the Company Ordinance to consider and pass as appropriate the ordinary resolution proposing the appointment of three directors, Cai Weikang, Liang Jiajin and Wang Kenan, and the removal of executive directors Liu Yongzhuo, Qin Liyong and any positions they hold in the company, with immediate effect.

Liu Yongzhuo, executive director of Evergrande Automobile, was asked to recall! The annual salary has exceeded 68 million

It is worth noting that Liu Yongzhuo was criminally detained in accordance with the law at the beginning of this year.

On the evening of March 27, Evergrande Automobile disclosed its 2023 financial report. According to the financial report, as of December 31, 2023, Evergrande Automobile's cumulative loss has reached 110.841 billion yuan, of which the loss in 2023 is about 12 billion yuan. As of the end of 2023, Evergrande Automobile's total assets were 34.851 billion yuan, and its total liabilities were 72.543 billion yuan, of which 26.484 billion yuan were borrowed, and in the same period, Evergrande Automobile's cash and cash equivalents were 129 million yuan, which was far from enough to cover the borrowings.

Evergrande Automobile: Evergrande Health asked the board of directors to immediately convene a general meeting of shareholders to remove executive directors Liu Yongzhuo and Qin Liyong

According to the announcement, on June 20, 2024, the Company received a notice from Evergrande Health Industry Group Co., Ltd. (hereinafter referred to as "Evergrande Health"), which is controlled by the liquidators of China Evergrande Group (in liquidation) (shareholders of the Company, holding 6.22 billion shares, representing approximately 57.36% of the total issued shares as of the date of this announcement), in accordance with Article 78(2)(b) of the Articles of Association of the Company, at the Company's annual general meeting to be held on Friday, 28 June 2024, to propose an ordinary resolution appointing (proposed to appoint) Mr. Choi Wai Hong as an executive Director; Mr. Leung Ka Chun is an independent non-executive Director; and Mr. Wang Kenan, together with Mr. Cai and Mr. Leung, collectively referred to as the "Director Nominees", are independent non-executive Directors.

On 24 June 2024, the Company received further notice from Evergrande Health, which is controlled by the liquidators of China Evergrande Group (in liquidation). Pursuant to Rule 48(3) and Section 566(2) of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), Evergrande Health (as a shareholder with at least 5% of the total voting rights of all shareholders of the Company entitled to vote at a general meeting) requires the Board to immediately convene a general meeting and hold a general meeting within the time specified in section 567 of the Companies Ordinance to consider and approve as appropriate (i) the proposed appointment, and (ii) The ordinary resolution for the removal of Mr. Liu Yongzhuo and Mr. Qin Liyong, executive Directors and any positions they hold in the Company, shall take effect immediately.

The notice of request states that if the board exercises its general power under Rule 80 to appoint a director as a director after the annual general meeting, the part of the request for notification of the proposed appointment will be automatically withdrawn.

The Board is considering and seeking advice on appropriate actions for the Notice of Nomination and Notice of Request. The Company will publish further announcements, circulars and circulars in due course in accordance with the details of the Listing Rules and applicable laws and regulations.

Liu Yongzhuo is Xu Jiayin's "right-hand man" and has been detained before

On January 8, 2024, Evergrande Automobile issued an announcement on the Hong Kong Stock Exchange, stating that the company was informed that Mr. Liu Yongzhuo, the executive director of the company, had been criminally detained in accordance with the law on suspicion of violating the law and committing crimes.

According to public information, Liu Yongzhuo, male, born in 1981, graduated from East China Normal University and Wuhan University of Science and Technology with a bachelor's degree in business administration and a master's degree in engineering management.

Liu Yongzhuo began to serve China Evergrande in 2003 and was highly valued by Xu Jiayin, and was Xu Jiayin's "right-hand man". In the management team of Evergrande Group, he ranked fifth only after Chairman Xu Jiayin, President Xia Haijun, President Zhen Litao of Evergrande Real Estate, and Shi Shouming, Vice President of Evergrande Group.

Liu Yongzhuo was in charge of Guangzhou Evergrande Taobao Football Club, Evergrande Cultural Industry Group, Evergrande Agriculture and Animal Husbandry Group, Evergrande Internet Finance Group, Evergrande High-tech Group, etc. He is currently the Executive Vice President of Evergrande Group, the President of Evergrande New Energy Automobile Group, the Chairman of Evergrande New Energy Technology Group, and the President of Vehicle Research Institute.

Liu Yongzhuo served as the chairman of Guangzhou Evergrande Club after Evergrande entered the football world in 2010, Evergrande from the Chinese League championship to the Chinese Super League championship, and won the AFC Champions League, all of which were completed during Liu Yongzhuo's tenure as chairman of the club.

At the celebration banquet for Guangzhou Evergrande to win the 2016 FA Cup, Liu Yongzhuo made a mocking summary to the whole team: "Our way of playing today is that I deliberately let you go first, and I will chase another one." Give you a little hope, and then I'll get it back. Then he shouted domineeringly: "The champion in the country, if I don't give it to you, you can't grab it!" ”

It is worth noting that although Evergrande Auto has been in trouble in recent years, it has not affected Liu Yongzhuo's high personal salary. In 2021, his salary was 68.49 million yuan, and in 2022, he received 43.98 million yuan.

The daily economic news is synthesized from Evergrande Automobile's announcements and public information

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