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Recently, Lu Chao, executive vice president of Evergrande Power Technology Group, announced on moments that he had officially left Evergrande on April 24 and expressed the hope that Evergrande would properly handle the acquisition of Hubei Tate Machinery and other related matters before leaving office. As for the reason why Lu Chao left Evergrande, the "real estate car-building" model mentioned in his circle of friends collided with the law of the development of the automobile industry, and said bluntly that it would be difficult to succeed without changing his behavior and car-building concept.

Evergrande Health announced on March 15, 2019 that Evergrande Health subsidiary (buyer) entered into an equity transfer agreement with Tianjin Tianhai synchronous Group Co., Ltd. (seller), Hubei Tate Mechanical and Electrical Co., Ltd. and Lu Chao (guarantor) to acquire 70% of Tate for 500 million yuan, which also gave Evergrande indirect control of e-traction.

Lu Chao can also be regarded as a "veteran" of the automobile industry. In 1992, Lu Chao established Tianhai synchronous Group, which deals in automotive transmission components and electronic control systems. Hubei Tate Mechanical and Electrical Co., Ltd., founded by Lu Chao in 2016, quickly acquired a 100% stake in e-Traction Company. after Evergrande had a controlling stake in Tate Machinery, Lu Chao and Tate's mechanical and electrical team joined Evergrande Group as the main person in charge of Evergrande Automobile Power.

It is not a long time from joining Evergrande to leaving Evergrande. Perhaps only he knows why Lu Chao left his job or simply because of different car-building modes.

The process of building cars at Evergrande is not smooth. After Xu Jiayin and Jia Yueting broke up in discord, Evergrande bought a 51 per cent stake in Sweden's NEVS for $930 million in January 2019 and embarked on the road to building cars again. 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 technical advantages, and set up vehicle R & D and parts production bases in Guangzhou, Shenyang and Nantong.

In addition, Evergrande car building is also controversial. Last June, Evergrande Guoneng 93 really went offline at the Tianjin factory, but the model did not cause much sensation, and few people may remember the car. However, Evergrande Health said that the current car construction process is smooth, the first production car "Hengchi 1" will be unveiled in the first half of the year, and the full range of Hengchi products will be fully mass produced from 2021.

Through the "buy" way, Evergrande quickly realized its technological advantages, but also let Evergrande Health in a state of loss. According to Evergrande Health's annual performance report in 2019, Evergrande made a net loss of 4.95 billion yuan in 2019, mainly due to the new energy vehicle business is still in the expansion investment stage, the purchase of fixed assets and equipment, research and development and other related expenses and interest expenses increased.

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