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Less than four months after the heat of the new energy vehicle market, Evergrande received new investment a few days ago. Evergrande issued an announcement on the evening of the 24th, placing 952 million new shares to six investors, attracting a total of HK $26 billion, which was voluntarily locked up for 12 months.

It is understood that the capital introduction is a discount of HK $27.30 per share at the average closing price of the first five trading days, and 952 million new shares have been issued to six investors, accounting for 9.75% of the company's total enlarged share capital.

Evergrande has brought in a total of five strategic investors, including Chen Hua, chairman of Shenzhen real estate tycoon Jingji Group, Huang Guangmiao, chairman of Zhongzhou Group, and Chen Kaiyun, wife of Hong Kong tycoon Liu Luanxiong. They are Chengyu Holdings Limited (HK $5 billion), Shangyu Company Limited (HK $5 billion), Yirong International Trading Co., Ltd. (HK $5 billion), Cuilin Global Investment Co., Ltd. (HK $5 billion), Ms. Chen Kaiyun (HK $3 billion) and Mr. Liu Minghui (HK $3 billion).

It is worth mentioning that many of the six strategic investors in Evergrande are old friends of Xu Jiayin's real estate industry. And this investment is also one of the largest equity financing in the new energy vehicle industry. Prior to this, Evergrande has already brought in shareholders such as Tencent, Sequoia Capital and DiDi, and this is Evergrande's second capital increase in six months.

According to Evergrande's announcement, the net proceeds from this financing will be used to strengthen the company's technology research and development, production investment, debt repayment and general corporate uses in the new energy vehicle industry.

Evergrande said that the successful private placement reflects investors' confidence in the development prospects of the company's new energy vehicle industry, and will greatly enhance the company's capital strength and accelerate the development of the new energy vehicle industry. Achieve the strategic goal of becoming the largest and most powerful new energy vehicle group in the world as soon as possible.

As a result, Evergrande's share price soared, rising 51.67% to 45.35 Hong Kong dollars per share by the close, leading the rise in new energy vehicle stocks to 66% at one point during the period. Evergrande currently has a market capitalization of more than HK $390 billion, ranking second only to BYD and the second largest car company in Hong Kong.

As one of the most powerful car manufacturers in China, Evergrande Automobile, formerly known as Evergrande Health, began to lay out the new energy vehicle industry in 2018 and officially changed its name to Evergrande in August 2020. Business covers the whole industry chain of new energy vehicles, such as power batteries, powertrain, advanced vehicle manufacturing, car sales and smart charging.

At the launch of Evergrande in August 2020, a total of Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6 were released, covering A to D classes, as well as cars, sedan cars, SUV, MPV and crossovers. And has officially released the Hengchi car logo, the car logo is a magnificent lion head. Evergrande's official explanation means to protect the blue sky, win over the Red Sea, the Lion of the East, and be proud of the world.

According to the plan, Evergrande "Hengchi" series models will be mass produced in the second half of 2021. After the production workshop reaches full production, it will be able to produce one car per minute. According to the plan, Evergrande will achieve annual production capacity of about 1 million vehicles by 2025 and 5 million by 2035.

It is precisely because Evergrande has only been a short two years since it was announced that cross-border cars were built. Xu Jiayin, chairman of Evergrande, has also said that it will take at least four and a half years from research and development to technological maturity, and if Evergrande takes four or five years to build, it may miss the best period. therefore, we hope to "change lanes to overtake" by "spending money". Evergrande, which smashed out a car-building road through capital, was also shouting loudly. Xu Jiayin said, "Evergrande wants to change lanes to overtake, to sum up five words: buy, buy, circle, big, good." He also said that with the help of so many leading companies on Evergrande's car-building road, it is difficult not to succeed.

However, due to continued skepticism, Evergrande finally unveiled the trial production of its first model, Hengchi 1, in December last year, which made the Hengchi car, which has been questioned for a long time, "ppt" car finally entered the trial stage. However, judging from the stock prices of many new forces in China, the development does not have the scale of traditional car companies, but it has achieved a surpassing of stock prices, which also means that capital is still optimistic about new energy vehicles. At the same time, with the funds in place, it may increase the speed of mass production of Hengchi models.

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