AutoBeta(AutoBeta.net)03/26 Report--

On March 25, Evergrande released its 2020 performance report and online performance meeting. According to the financial report, Evergrande achieved an operating income of 15.487 billion yuan in 2020, an increase of 175 percent over the same period last year, including 15.299 billion yuan for the health management division and 188 million yuan for the new energy vehicle division. The gross profit was 2.695 billion yuan, up 43 percent from the same period last year. Last year, the net loss was 7.665 billion yuan, up 54.94 percent from the same period last year.

This is the first annual financial report since Evergrande Health changed its name to Evergrande Automobile. At the performance meeting, Evergrande Chairman Shawn said that Evergrande is currently laying out production bases in many countries and regions around the world; in terms of products, Evergrande is developing 14 cars simultaneously, covering various market segments; at present, the total investment in the new energy vehicle industry has reached 47.4 billion yuan, and it is planned to achieve annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035.

Evergrande Group began to layout new energy as early as 2017, and initially chose to build cars in cooperation with Jia Yueting's FF, but the cooperation between Evergrande and FF ended in failure due to lack of agreement on some projects. After being separated from FF, Evergrande Group did not stop expanding the business of new energy vehicles. First, it became the largest shareholder in National Energy Electric vehicle Sweden Co., Ltd. (NEVS), and then acquired Kanai New Energy, Hubei Tate Mechanical and Electrical Co., Ltd., e-Traction of the Netherlands, Protean of the British wheel motor company and other enterprises to form technological advantages.

As a well-known real estate enterprise in China, Evergrande Group has given people a sense of "deep pockets" since it announced its entry into the automotive field. In November 2019, Xu Jiayin, chairman of Evergrande Group, said, "Evergrande wants to change lanes to overtake. To sum up, there are five words: buy, buy, circle, big, good." According to Xu Jiayin's plan, Evergrande will take three to five years to become the largest and most powerful new energy vehicle group in the world.

In the second half of 2020, the pace of Evergrande car building has been accelerated. In July 2020, the listed company Evergrande Health changed its name to Evergrande Automobile. In August 2020, Evergrande released six models: Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6. In November 2020, Evergrande officially released the Hengchi logo. Hengchi car logo means "protect the blue sky, win the Red Sea, Oriental Lion, proud of the world". In February 2021, Xu Jiayin, chairman of the board of Evergrande, supervised the winter test of Hengchi, and in the same month Evergrande released three models: Hengchi 7, Hengchi 8 and Hengchi 9.

At the results conference on the 25th, Evergrande further clarified the standard model of each new car and announced the price range of each model. From the official information, Hengchi 1-Hengchi 9 pairs of target models are luxury cars, including Mercedes-Benz, BMW, Audi, Tesla, Xilai and so on.

Specifically, the prices of A-class SUV Hengchi 5 and A-class cross-border SUV Hengchi 6 are less than 200000 yuan, compared with BMW X1, Audi Q3, Mercedes-Benz GLAs and other luxury entry-level models; B-class sedans Hengchi 2 and Hengchi 7, B-class SUV Hengchi 9 price range of 20-350000 yuan, for mainstream luxury models such as Standard Tesla Model 3, Mercedes-Benz C-Class, Audi A4L, BMW 3-Series, Xilai ES6, Tesla Model Y, etc. The price of C-class large SUV Hengchi 3, MPV Hengchi 4, C-class Hengchi 8 is 35-500000 yuan, for standard Wei Lai ES8, Tesla Model X, Toyota Elfa, Lvlai ET7, Audi A7, Mercedes-Benz CLS, etc.; D-class car Hengchi 1 price more than 500000 yuan, against standard Audi A8L, Tesla Model S, Mercedes-Benz S-class. Sean, chairman of Evergrande, said he plans to achieve annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035.

Under a series of operations, the market capitalization of Evergrande has surpassed that of Xilai Motor, second only to BYD in China. As of the close of Hong Kong stocks on March 26, Evergrande's total market capitalization was 592.4 billion Hong Kong dollars (about 498.6 billion yuan, up 11.41% on the day, with a net increase of 34.1 billion yuan), while BYD's current market capitalization is 489.2 billion yuan. in other words, Evergrande's market capitalization has surpassed BYD to become the number one manufacturer in China.

It is worth mentioning that although Evergrande has released 9 models, covering all levels A to D, as well as passenger cars, sedan cars, SUV, MPV, crossover cars and other passenger vehicles, Evergrande has no reference information for the specific parameters of its products except for the appearance of the model, so it is difficult not to suspect that this is a fancy sample car release. In response, Weimar founder Shen Hui once said on Weibo that "Evergrande needs cars".

According to relevant documents, Evergrande's first model will be built on Evergrande's EM3 platform, a positioning platform for medium-and high-end pure electric vehicles, with an annual output of 87000 vehicles, with the earliest model being mass-produced in August 2022, meaning the first model will be available by the end of next year. In other words, it takes two years for Evergrande to launch a new car to mass production. Since it takes two years, it is not difficult to understand why Evergrande chose to release a new car at an advanced time.

Evergrande belongs to cross-border car manufacturing and has no experience in the field of car building, but thanks to its "banknote ability", Evergrande will soon be able to achieve the layout of its supply chain, that is to say, it is only a matter of time for Evergrande to build cars. However, Evergrande currently does not have a new car on the market, which inevitably makes the outside world suspect of "pulling the stock price". Of course, if the stock price is regarded as the most important product of Evergrande, it is obviously very successful.

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