AutoBeta Home News New Vehicle Industry Report Data Report Industrial Economy

In addition to Weibo, there is also WeChat

Please pay attention

WeChat public account


Lose another 6.8 billion RMB! Evergrande laid off staff

2024-03-04 Update From: AutoBeta autobeta NAV: AutoBeta > News >


AutoBeta( Report--

On the evening of August 25, Evergrande announced its interim results up to 2023 on the Hong Kong Stock Exchange.

According to the financial report, Evergrande made a gross loss of 61 million yuan and a net loss of 6.873 billion yuan in the first half of 2023. Of these, the divestiture of real estate projects lost 1.061 billion yuan, asset disposal, asset impairment and other non-operating losses of 3.716 billion yuan, automobile operating losses of 2.096 billion yuan.


Earlier, Evergrande released its two-year report card. The financial report shows that Evergrande has an annual net loss of 56.34 billion yuan in 2021 and a net loss of 27.66 billion yuan in 2022, with a cumulative loss of 84.01 billion yuan in two years. In fact, since Evergrande announced the construction of the car, it has lost a total of 105.78 billion yuan, including 1.43 billion yuan, 4.43 billion yuan and 7.39 billion yuan respectively from 2018 to 2020.


Evergrande spun off its real estate business and became a pure new energy car company. Evergrande Motor announced on April 24 that Evergrande signed a sale and purchase agreement with China Evergrande and China Evergrande subsidiary Anxin Holdings to sell the corporate equity composed of two wholly-owned subsidiaries, Huibao, Flaming Ace and their subsidiaries, for a symbolic price of 2 yuan, for 47 health space projects and 21 real estate development projects under Evergrande. In this "left-hand-to-right-hand" transaction, although Evergrande did not get cash, it handed over 24.789 billion yuan in debt to the buyer.



Evergrande needs money too much. China Evergrande has said that Evergrande New Energy vehicles will face the risk of stopping production without access to new liquidity, but if the group can seek financing of more than 29 billion yuan in the future, it plans to launch a number of flagship models and hopes to achieve mass production. It is understood that Evergrande suspended production for many months in the first half of the year due to financial problems and did not resume production until May, that is, after Evergrande spun off its real estate business.

In addition to suspending factory operations, layoffs seem to be the only option.

In order to support the mass production of Hengchi 5, Evergrande's Swedish subsidiary National Electric Vehicle Sweden AB announced a dormancy plan, laying off 320 people (a total of 340 people) to save costs and avoid bankruptcy. According to the financial report, as of June 30, 2023, Evergrande employed a total of 1597 employees, while as of December 31, 2022, Evergrande employed 4506 employees, and as of March 31, 2023, Evergrande employed a total of 2795 employees. According to this calculation, Evergrande laid off 2909 employees in the first half of 2023, including 1198 in the second quarter.

Evergrande strips off its real estate business to get rid of debt at a low price, essentially hoping to attract potential strategic investors with a low burden and pure business identity. However, in the face of its own hematopoietic difficulties and the slow disappearance of strategic investors, the prospect of Evergrande looks particularly bleak.

Of course, Evergrande also ushered in a lot of "good news" after entering the third quarter.

Listed companies resume trading. Evergrande announced its resumption of trading on July 29, 323 days after the suspension, becoming the first "Evergrande" company to resume trading, and it "lived up to expectations", as the market expected, its share price plummeted on the first day of trading, closing down 61.25%. It is understood that Evergrande overtook BYD to become the largest car company in China, with a highest share price of HK $72.45. After that, Evergrande, which had not yet spun off its real estate business, was also affected by the thunderstorm of Evergrande's real estate business. Its market value has lost 98% since its peak. At present, Evergrande's latest share price is HK $1.29, with a total market capitalization of HK $13.988 billion.


Mysterious fund rescue in the Middle East. On August 14, China Evergrande announced that Evergrande received the first strategic investment of US $500 million from Newton Group, which is held by the United Arab Emirates National Sovereign Fund. Newton Group will subscribe for about 27.5% of Evergrande Motor. China's Evergrande holding proportion will be diluted to about 46.86%, Evergrande will no longer be a non-wholly-owned subsidiary of Evergrande, and its financial performance will no longer be included in the performance of Evergrande Group.

Newton Group, headquartered in Dubai, United Arab Emirates, listed on Nasdaq in November 2022, is the first UAE-listed new energy company in the United States, with a vehicle assembly plant in Abu Dhabi, according to public information. According to the announcement, all the war investment funds will be used at Evergrande's Tianjin factory to ensure the normal production of Hengchi 5 and the mass production of Hengchi 6 and 7, and will also help Evergrande to open up overseas markets. realize the annual export of 30,000 to 50,000 Hengchi vehicles to the Middle East market.

Since the announcement of car construction, Evergrande has planned a total of nine models, including Hengchi 1 and Hengchi 2, etc., but in fact, only Hengchi 5 has really achieved mass production and listing, and so far the cumulative delivery has only exceeded 1000, which is equivalent to a loss of almost 100 million on the sale of a car, and Evergrande's car-building path is also a record in the industry.


Previously, Evergrande had given "three major goals". The scale goal is to build Evergrande into the largest and strongest new energy vehicle group in the world, with annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035. Of course, there is a good chance that this goal will fail. According to the announcement, Evergrande delivered more than 760 cars in the first half of the year.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat

Views: 0

*The comments in the above article only represent the author's personal views and do not represent the views and positions of this website. If you have more insights, please feel free to contribute and share.

Share To

Network commentsNetwork comments are only for expressing personal opinions and do not express the position of this website




© 2024 AutoBeta.Net Tiger Media Company. All rights reserved.