Guangzhou Authorities to Reclaim Idle Land from Evergrande Auto

Recently, the Planning and Natural Resources Bureau of Nansha District, Guangzhou, issued a notice regarding the identification of idle land (Document No. Sui Planning Resources Idle [2025] No. 9), stating that it will reclaim the industrial land of Evergrande Hengchi New Energy Vehicle Technology (Guangdong) Co., Ltd. located in Nansha, due to its status as idle land. According to the bureau's documents, the registered area of the Evergrande Auto Nansha base is 437,441 square meters, designated for industrial use. The bureau declared that the land has been idle since June 9, 2021, due to the company's reasons. They will handle the land according to the "Idle Land Disposal Measures" (Ministry of Land and Resources Order No. 53). According to Article 14 of these measures, if the development has not commenced for more than two years, the municipal or county land resources authorities will, with the approval of the competent people's government, issue a decision to reclaim the state-owned construction land use rights, free of charge. This means that the industrial land in Nansha, which Evergrande Auto won in 2020 for a total price of 590 million yuan, will be reclaimed by the land resources authorities. At that time, Evergrande Auto planned to use the land for the research and development and manufacturing of electric vehicles and core components. However, Evergrande Group faced a financial crisis, halting the automotive project. In July of last year, Evergrande Auto announced on the Hong Kong Stock Exchange that both Evergrande New Energy Vehicle and Evergrande Intelligent received notifications from the court, as individual creditors had applied for their bankruptcy reorganization in relevant local people's courts. As of November last year, the reported debt amount for Evergrande New Energy Vehicle was approximately 7.585 billion yuan. Currently, Evergrande Auto's shares are suspended from trading on the Hong Kong Stock Exchange.