AutoBeta(AutoBeta.net)09/25 Report--

On September 24, Evergrande issued a notice saying that due to the group's liquidity problems, there were delays in the payment of suppliers and project payments in the group's Evergrande Health Valley and the living space of new energy vehicles, resulting in the suspension of some related projects. As of the announcement, the Group has not made significant progress in striving for the resumption of work for some projects.

In addition, Evergrande also said that the company is still in contact with different potential strategic investors to introduce new investors for the group, as of the announcement, is still in the process of due diligence and consultation. The group has not yet signed any legally binding agreements with investors, and it is uncertain whether the potential sale can be realized. If necessary, the company will make a further announcement in accordance with the listing rules in due course.

If no progress is made in the introduction of the above strategic investment and the sale of potential assets in the short term, it will lead to a lack of further capital investment in the Group, which is expected to affect the daily operation of the Group, worsen the payment of salaries and ╱ or other expenses of the Group's employees, and affect the progress of research and development of new energy vehicles, which will have a significant negative impact on the mass production of new energy vehicles of the Group.

Although Evergrande issued an announcement at night, its share price fluctuated sharply during the day. Evergrande fell 23.37% to HK $2.23 as of Sept. 24, with a total market capitalization of HK $21.8 billion.

Under the background that new energy vehicles have become a tuyere, Evergrande's share price has continued to rise after being renamed from Evergrande Health, which once surpassed Great Wall Motors, BYD and other car companies to become the first car company in China by market capitalization. However, the top of the station also suffered the worst fall. Evergrande, which has not been in mass production, has fallen all the way after its high debut at the Shanghai auto show, plummeting nearly 97% from a peak of HK $72.45 this year, and its market value has lost more than 680 billion yuan to 21.8 billion yuan.

In addition to the collapse in share prices and the shutdown of car projects, Evergrande has also moved its headquarters to Guangzhou. Evergrande New Energy Automobile Investment holding Group Co., Ltd. (hereinafter referred to as "Evergrande Automobile"), which has been working in Shenzhen for four years, has moved its office to Nansha, Guangzhou, according to China Business News. It is reported that the offices of Evergrande Motor City in Nansha, Guangzhou have all been opened, and nearly 1,000 employees have begun to transfer from Shenzhen to Nansha. Evergrande has provided necessary accommodation support for employees during the transition period. Since then, the offices of Evergrande Motor and Evergrande Group headquarters have been officially separated.

According to the original plan, Evergrande's Hengchi series products will start trial production in the first half of this year, and mass production will begin in the second half of this year. However, the plan can not catch up with the change. Although the sales of domestic new energy vehicles have increased significantly, Evergrande, which has been highly unveiled before, has obviously kept a low profile, even though the domestic market has been photographed many times in the road test of Hengchi products. However, in the context of Evergrande Group's deep debt crisis, it is clear that there are many variables in whether Evergrande can launch mass-produced models as scheduled in the second half of the year.

Li Bin in NIO once said, "Don't build a car without 20 billion." As the leader of domestic housing enterprises, Evergrande Group is not stingy in paying for the new energy vehicle business. As of December 2020, Evergrande has invested 47.4 billion yuan in the new energy vehicle industry, of which 24.9 billion yuan has been invested in research and development. However, even with the support of a huge amount of money, Evergrande has released nine models, but mass production is a long way off. At present, Evergrande Group has encountered unprecedented challenges, Evergrande Automobile is also difficult to be left alone, part of the shares will be sold, which aggravates the difficulties of mass production of models.

Once upon a time, Xu Jiayin used to use "buy, buy, circle, big, good" to sum up Evergrande's road of "changing lanes and overtaking". In view of the development and positioning of Evergrande New Energy, Xu Jiayin has also publicly stated that he wants to become the largest and strongest new energy vehicle group in the world in 3-5 years. However, in the context of Evergrande's deep crisis, can Xu Jiayin still realize his "dream of new energy cars"?

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