AutoBeta(AutoBeta.net)11/25 Report--

Evergrande's share price fell under the influence of outside news. Hong Kong shares closed on November 25th, Evergrande closed at HK $22.80, down 5.2%, with a total market capitalization of HK $201.018 billion. According to media reports today, the National Development and Reform Commission issued a notice to investigate the investment of new energy vehicles around the country and find out the investment projects related to Evergrande and Baoneng.

Evergrande Group is a well-known real estate development and management enterprise in China. In recent years, it has become famous in the automobile field because of its huge investment and high-profile new energy manufacturing. In July this year, Evergrande renamed its listed company "Evergrande Health" to "Evergrande Automobile", turned the company's main business into new energy vehicles, and said that the company is making every effort to develop new energy vehicle business. The whole industry chain of new energy vehicles covering power batteries, powertrain, advanced vehicle manufacturing, car sales and smart charging has been built.

Today, a notice on carrying out a survey on the production and projects of new energy vehicles with the official seal of the Industrial Development Department of the National Development and Reform Commission was circulated on the Internet. The document revealed that in order to strengthen investment supervision, it is necessary for all localities to provide information on the projects, construction progress and annual production of new pure electric vehicles (including passenger vehicles and commercial vehicles) approved or filed in the region since 2015. Provide the production and operation of existing automobile new energy vehicle investment projects and the record of new energy vehicle projects under construction in the region from 2019 to 2020; provide pure electric vehicle project planning and investment attraction in this area.

The circular also stressed that it is required to report in detail the local automobile and spare parts projects invested by Evergrande, Baoneng and other enterprises since 2017, including land occupation, construction content, project progress, completion of investment, and so on.

According to the content of the Circular, the General Office of the State Council issued the Development Plan of New Energy vehicle Industry (2021-2035) in October 2020, clearly proposing to strengthen supervision during and after the event, consolidate the responsibility of local subjects, and curb chaos such as blindly launching vehicle manufacturing projects for new energy vehicles. In order to strengthen investment supervision, strictly implement the "Automobile Industry Investment Management regulations" and promote the high-quality development of the new energy vehicle industry, the Industrial Development Department of the National Development and Reform Commission plans to carry out the investigation of new energy vehicle investment projects in the near future.

In response to this matter, a relevant person from the National Development and Reform Commission told the media, "this matter is being implemented, and it is not convenient to talk about it yet."

According to the 21st Century Economic report, a person from Evergrande responded that the matter is still being verified within the company, and the official response will be issued after further verification.

Evergrande Group has crossed the border into the manufacture of new energy vehicles through "buying and buying". At present, Evergrande has built two major production bases in Songjiang in Shanghai and Nansha in Guangzhou, with a planned production capacity of 200000 vehicles per year in the first phase. In August this year, Evergrande officially launched the "Hengchi" brand, with the debut of six new cars, including Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6, covering A to D classes, as well as sedans, sedan cars, SUV, MPV and crossovers. Evergrande revealed at the half-year results conference that trial production will be launched in the first half of next year and mass production will be realized in the second half of the year.

Xu Jiayin has said that Evergrande will produce 1 million new energy vehicles a year and will become the largest and most powerful new energy vehicle group in the world in three to five years.

In addition, Evergrande is applying for A-share gem listing. On September 25, Evergrande announced that the company intends to apply for an initial public offering of RMB shares and list them on the Shanghai Stock Exchange, with a price of no less than HK $25 per share. the funds raised are intended to be used for new energy vehicle R & D, production and marketing network construction projects and supplementary working capital.

In recent years, driven by the wave of new energy vehicles and subsidies, many places began to attract investment in the manufacture of new energy vehicles, but due to the small demand for new energy vehicles and the market gradually returning to rationality, many new energy investment projects have been shut down. And the relevant documents also show that it is necessary to curb chaos such as blindly launching new energy vehicle manufacturing projects.

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