AutoBeta(AutoBeta.net)10/21 Report--

On October 20, according to the Financial Associated Press, Evergrande Group recently issued a notice of personnel appointment and dismission. it is understood that the notice involves 33 job changes, including Evergrande Automobile Group headquarters, Tianjin Company, production and Manufacturing Center, Global Research Institute, and other subordinate units, most of which are middle and senior levels. Among them, Zhang Dan is also vice president of Automobile Group, and Gao Jingshen, executive vice president, is also chairman of Evergrande Automobile Tianjin Company. In addition, people familiar with the matter said, "Evergrande Automobile President Liu Yongzhao with several core cadres in the war vote, but so far there has been no substantial progress."

According to earlier media reports, Evergrande Automobile Strategic Partnership Conference was held on October 11. At the meeting, Evergrande President Liu Yongzhao revealed the new progress of Evergrande car building, saying that Evergrande has launched a three-month battle to ensure that the first model, the Hengchi 5, will be offline at the Tianjin plant early next year. In addition, it also said that the company mobilized core R & D teams and technical elites from Shanghai, Guangzhou, Shenzhen and other places to come to support, with the cooperation and strong support of partners. Evergrande vows to ensure the realization of Hengchi production goal with the greatest determination and maximum efforts. Subsequently, according to the "later LatePost" report, due to arrears of payments to equipment suppliers, the production line renovation project of Evergrande's Tianjin plant was basically stalled not long ago, and the Hengchi 5, which was originally scheduled to be launched early next year, did not start production as scheduled. In response to the report, relevant sources close to Evergrande said that the transformation of the production line of Evergrande's Tianjin plant was fully restarted at the beginning of this month and is now going all out to ensure that Hengchi models will be off the line as scheduled at the beginning of next year. In addition, some relevant media visited the Evergrande Automobile Factory in Tianjin Binhai High-tech Zone. According to various sources, recently, some outsourced construction unit personnel have returned to work one after another, and some workers who have been suspended from work in the factory have also returned to work.

Although Evergrande said it would "work hard for three months to ensure that Hengchi 5 will be offline at the beginning of next year," the debt problem of the parent company Evergrande Group has also added a lot of uncertainty to Evergrande's mass production. On September 24, Evergrande announced that it is still in contact with different potential strategic investors to introduce new investors for the group, and as of the announcement, it is still in the process of due diligence and negotiation. 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. In addition, Evergrande's shares have been sold off by a number of allies as a result of Evergrande's recent debt crisis. On October 19, it was reported that China Evergrande's Guoneng Electric vehicle Sweden Co., Ltd. is negotiating with venture capital firms and industry partners in the United States and Europe to find a new owner. Evergrande Automotive Group insiders confirmed the authenticity of the report. Some analysts said that Evergrande sold Guoneng to reduce debt and cash flow pressure.

It is not difficult to see that Evergrande is in a financial crisis. According to the semi-annual report released by Evergrande, the company's revenue in the first half of 2021 was 6.923 billion yuan, an increase of 53.5% over the same period last year, of which the income of the new energy vehicle industry contributed only 37 million yuan. The vast majority of income comes from the health management division, reaching 6.886 billion yuan. Due to continuous investment in car construction, Evergrande's loss widened to 4.82 billion yuan in the first half of the year and 2.46 billion yuan in the same period in 2020. Whether Hengchi 5 can be offline at the beginning of next year remains to be verified by the market.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat