AutoBeta(AutoBeta.net)03/23 Report--

On the evening of March 22nd, Evergrande Health issued a profit warning announcement, which showed that the net loss in 2019 is expected to be about 4.9 billion yuan, which is further larger than the loss of 1.428 billion yuan in 2018.

For the reason for the further expansion of the loss, Evergrande Health said that it is mainly due to the expansion of new energy vehicle business, which is in the investment stage, the purchase of fixed assets and equipment, research and development and other related expenses and interest expenses have increased. Evergrande Health estimates that the group holding company expects a net loss of 2 billion yuan in 2019, a net loss of 3.2 billion yuan in the new energy vehicle business, and a net profit of about 300 million yuan in the company's health management business over the same period.

Evergrande's entry into the new energy vehicle industry starts with its investment in Jia Yueting's FF. In November 2017, Evergrande reached a strategic partnership with FF, and Evergrande acquired a 45% stake in FF for $2 billion (about 13.87 billion yuan), making it a major shareholder in FF. At first, the cooperation between the two companies went well. after Evergrande paid $800m and was spent by FF, FF offered to pay $700m in advance to Evergrande. After FF failed to achieve its goal, Evergrande's cooperation with FF ended in failure.

After falling out with FF, Evergrande has not stopped expanding its new energy vehicle business. In January 2019, Evergrande Health bought a 51 per cent stake in Sweden's NEVS for $930 million, once again embarking on the road to building cars. Subsequently, Evergrande acquired Carney New Energy, Hubei Tate Mechanical and Electrical Co., Ltd., Dutch e-Traction, British hub motor company Protean, Guanghui Group and other enterprises to form its own technological advantages, and set up vehicle research and development and parts production bases in Guangzhou, Shenyang and Nantong, resulting in a loss of 1.428 billion yuan in 2017.

According to Xu Jiayin, chairman of Evergrande Group, it will take three to five years for Evergrande to become the largest and most powerful new energy vehicle group in the world. Evergrande's three-year investment budget for new energy vehicles is 45 billion, with an investment of 20 billion in 2019, 15 billion in 2020 and 10 billion in 2021. At the same time, it will also work with top sports car brand Koenigsegg to produce 1000 supercars a year.

Evergrande expects to produce more than 1 million vehicles a year in 2 to 3 years and more than 5 million in 10 to 15 years. It is understood that Hengchi 1, the first car of Hengda New Energy, will be unveiled in the first half of the year, and the full range of Hengchi products will be mass-produced one after another from 2021.

Through the way of "buying and buying", Evergrande has quickly realized its technological advantages. however, in an era when the development of new energy vehicles is not balanced, while traditional car companies have entered the field of new energy vehicles, can Evergrande Group's production target of 5 million vehicles come true? Even if the production reaches 5 million vehicles in 10-15 years, it is still very uncertain whether the production and sales can be proportional to each other.

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