AutoBeta(AutoBeta.net)03/26 Report--

China Evergrande held its 2018 results conference in Hong Kong. Xu Jiayin said that Evergrande has a relatively large investment, determination and layout in new energy vehicles. "I demand that the production line must be world-class and determined to enter this field. I firmly believe that we will succeed." Evergrande Annual report shows that it strives to become one of the largest and strongest new energy vehicle groups in the world in 3-5 years.

Xu Jiayin believes that the whole world attaches great importance to the development of new energy vehicles, especially in Europe, many countries basically have to cancel the production and sale of fuel vehicles, and the world will attach great importance to environmental protection in the future. the trend of new energy vehicles replacing fuel vehicles is very generous and clear. The market of new energy vehicles in the future is a very large market. From market research, what kind of diversified industries? It can match the size of Evergrande.

Xu Jiayin announced that Evergrande has completed the industrial layout of Evergrande, and the four major industrial layouts have been formed. It will not set foot in other larger industries in the past five years, and the new energy automobile industry is the leader of Evergrande industry.

Evergrande's entry into the automotive industry began with its investment in Jia Yueting's FF, which reached a strategic partnership with Evergrande in November 2017, in which Evergrande acquired a 45 per cent stake in FF for $2 billion (13.87 billion yuan), making it a major shareholder in FF. At first, the cooperation between the two sides went smoothly. Xu Jiayin of Evergrande also visited the FF factory in the United States, but after Evergrande spent the US $800 million, FF asked Evergrande to pay another US $700 million in advance, and after failing to achieve its goal, Evergrande formally fell out with FF.

After nearly three months of confrontation, the dispute finally settled. On the last day of last year, both FF and Evergrande Health announced that FF and Shiying had terminated the lawsuit, Evergrande and FF were officially separated, the Guangzhou Nansha plant was transferred to Evergrande, and other Chinese assets were still attributed to FF.

Without a partnership with FF, Evergrande did not stop in the field of new energy vehicles, and Evergrande soon acquired Sweden's NEVS. Evergrande's front foot is out of touch with FF, while its back foot is in love with NEVS. The outside world has questioned whether Evergrande's move has become emotional. However, Xu Jiayin responded today that the acquisition of Swedish car companies was investigated and not emotional. "Don't forget that I worked as a workshop director for ten years and have basic skills."

In addition, at today's annual results conference of China Evergrande in 2018, Pan Darong, chief financial officer of the board of directors of Evergrande, said: "our debt ratio has fallen sharply in the medium term in 2018, and there has been a slight rebound in the second half of the year. There has been a rebound and new industrial investment has been managed, such as the acquisition of NEVS, which lays the foundation for great development. We think that with the strategy of cash king in the second half of 2018, we expect to adjust the net debt ratio in the future."

In January, Evergrande made three moves in just one month. On January 15, Evergrande bought a 51% stake in NEVS Guoneng for $930 million and won a seat on the board. On January 24, Evergrande New Energy bought a stake in Carney New Energy for 1.06 billion yuan to enter the upstream power battery plate. On January 29th, Evergrande announced a stake in supercar maker Koeniger for 150 million euros.

Earlier, in September 2018, Evergrande announced that it had acquired a nearly 41 per cent stake in Guanghui Group for 14.5 billion yuan, making it the company's second-largest shareholder. Guanghui Automobile is the largest dealer group in China. Evergrande and Guanghui Group join hands to carry out comprehensive strategic cooperation in automobile sales, energy, real estate, logistics and other fields. give full play to the resource advantages of both sides to integrate resources.

NEVS successfully acquired Sweden's Saab Motor Company in 2012. NEVS has a domestic subsidiary called Guoneng Electric vehicle. The 93 pure electric car it has recently mass produced and delivered is actually Saab's prototype car. In mid-January, Evergrande took a 51% stake in NEVS Electric vehicle Company for $930 million.

On January 24th Evergrande bought a 58 per cent stake in Shanghai Carney New Energy for 1.06 billion yuan, making it a major shareholder. Shanghai Carney New Energy Co., Ltd. (CENAT) is a Sino-foreign joint venture company jointly funded by China Automotive Technology Research Center (CATARC) and Japan English time Co., Ltd. (ENAX). It specializes in the research, production and sales of power lithium-ion batteries.

At the end of January, NEVS, a Swedish electric car company owned by Evergrande, signed a contract with supercar company Koenigsegg Automotive in Sweden to form a joint venture dedicated to the research, development and production of the world's top new energy vehicles, which uses Koenigsag's technology patents and brands, with Evergrande NEVS holding 65 per cent and Koeniger 35 per cent.

In march, Evergrande bought a 70% stake in Tate for 500 million yuan. At present, there are about 5 large-scale international players producing hub motors, and e-Traction of the Netherlands, which is 100% owned by Tate Electronics, is a leading international R & D and production enterprise of wheel hub motors and electric vehicle transmission systems.

So far, Evergrande's car-building project has covered power batteries, hub motors, supercars, car-building and dealer networks. It can be said that Evergrande has laid a "big net". As Xu Jiayin said, Evergrande has a relatively large investment in new energy vehicles, greater determination and larger layout.

Evergrande has stated many times that the project, which includes an automobile assembly plant and a lithium battery plant, is expected to cover an area of more than 2000 mu, and the project will lay the foundation in April and start construction in June. Tianjin base plans to put into full production in June this year to achieve a production capacity of 500000-1 million vehicles within three years, and gradually achieve mass production. Evergrande is also full of confidence in the new energy vehicle project. Evergrande's 2018 annual report shows that it strives to become one of the largest and strongest new energy vehicle groups in the world in 3-5 years.

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