AutoBeta(AutoBeta.net)08/27 Report--

On August 27, Evergrande released its interim results report for 2020. According to the report, the operating income in the first half of the year was 4.51 billion yuan, an increase of 70 percent over the same period last year, while the net loss was 2.457 billion yuan, compared with a loss of 1.984 billion yuan in the same period last year.

Evergrande Automotive semi-annual report shows that the company's main business is the automotive sector and the health sector. Judging from the data, the overall revenue and gross profit growth of Evergrande in the first half of the year were driven by the healthy sector. The revenue of its automobile sector is 50 million yuan, which is only 0.1% of the total revenue (4.51 billion yuan). The net profit loss of the car is 1.27 billion yuan, accounting for 51.6% of the total loss (2.457 billion yuan). This means that the cumulative loss of Evergrande's automobile business has reached nearly 6.3 billion yuan in the more than two years from 2018 to now.

The automobile business continues to lose money, when will it be profitable? Pan Darong, chief financial officer of Evergrande, said that with the mass production and sale of Hengchi products, the company is confident of achieving cash flow balance and profitability soon.

In August this year, six new cars under Evergrande's new energy vehicle brand "Hengchi" were launched, and Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6 were officially unveiled, covering A to D class models, as well as passenger cars such as cars, sedan cars, SUV, MPV, crossovers and so on. The first model will be put into production and launch next year. Liu Yongzhao, president of Evergrande Automobile Group, said at the meeting that Hengchi will start trial production in the first half of next year, mass production will be achieved in the second half of the year, and is confident that Hengchi will quickly seize the market after its listing.

In June 2018, Evergrande Group announced its entry into the automobile industry. In January 2019, Evergrande announced that it would take 3-5 years to become the largest and most powerful new energy vehicle group in the world. At the same time, Evergrande Group started the upstream enterprises of the automobile industry to realize the industrial layout of new energy vehicle R & D and manufacturing, power battery, powertrain and so on.

However, judging from the situation of the automobile market in the past two years, it is uncertain whether Evergrande can catch up with the fast lane of new energy vehicles. At present, the new energy vehicle industry is slowing, and sales of new energy vehicles have fallen for 12 consecutive months since the decline in new energy subsidies last year and did not grow until July this year.

At present, Evergrande may establish a sound sales and service system to ensure the performance of the products after landing. Liu Yongzhao said that Evergrande is rapidly preparing to build three Hengchi car display experience, sales and maintenance after-sales service centers, including 36 Hengchi display and experience centers, 1600 Hengchi sales centers, 3000 self-built and authorized maintenance after-sales service centers, to build a huge automobile sales channel and after-sales service network.

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