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British motor maker Saietta said it would buy e-Traction, an electric transmission company, from a subsidiary of Evergrande in a deal worth 2 million euros (14.62 million yuan), according to media reports. Saietta said the acquisition of e-Traction, a Dutch company owned by Evergrande New Energy vehicles, would inject new commercial capacity into the company and add a built production facility to further strengthen its business, according to Reuters. E-Traction also produces high-voltage power electronics for heavy trucks and buses. In addition, Saietta revealed that Evergrande had waived about 21.2 million euros in loans to e-Traction as part of the deal.

According to relevant data, e-Traction, founded in 1981 and headquartered in the Netherlands, is a leading international R & D and production enterprise of wheel hub motor and electric vehicle transmission system. In March 2019, Evergrande Health (that is, Evergrande Automobile) announced that the subsidiary (buyer) of the company entered into equity transfer agreements with Tianjin Tianhai synchronous Group Co., Ltd. (seller), Hubei Tate Mechanical and Electrical Co., Ltd. and Lu Chao (guarantor). The buyer agreed to buy 70% of Tate Mechanical and Electrical Co., Ltd. for a consideration of 500 million yuan, and Tate will become a subsidiary of the company upon completion of the acquisition. It is worth noting that the Dutch e-Traction has the world's most advanced hub motor technology, which may also be the reason why Evergrande acquired e-Traction in the first place.

In addition to the sale of e-Traction, Evergrande Group's Guoneng Electric vehicle Sweden Co., Ltd. is in talks with venture capital firms and industry partners in the United States and Europe to find a new owner. Evergrande Group insiders confirmed the authenticity of the report to China Business News. According to the data, Evergrande Group acquired a 51% stake in Guoneng in January 2019, and has since acquired the remaining stake in Guoneng twice. Guoneng has become a Swedish subsidiary of Evergrande New Energy Automobile Group. After the acquisition of Guoneng, Evergrande Automobile Group made a series of adjustments to the subordinate relationship between Guoneng and its subordinate companies. In April 2021, the name of the national energy new energy enterprise was changed to Evergrande New Energy vehicle (Tianjin) Co., Ltd. (hereinafter referred to as "Evergrande Tianjin"), and the actual control is Evergrande New Energy vehicle Holdings (Hong Kong) Co., Ltd. Therefore, the sale of Guoneng will not affect the production and sales qualification of Evergrande.

Judging from Evergrande's sale of electric transmission company e-Traction, it is indeed a meat-cutting move to buy 14 million yuan and sell it. In fact, this is also a helpless move. With the break of the capital chain of Evergrande Group, the core technology accumulated through buying and buying earlier is constantly being sold on a large scale through "selling". However, even so, Evergrande's belief in car building is still identified, and its first production car, Hengchi 5, has been declared in the Ministry of Industry and Information Technology, which means that Hengchi 5 is qualified for mass production and listing. However, it should be noted that this is only qualified for mass production and listing. As for whether and when mass production can be listed, there is no clear time point at present.

However, according to Evergrande's current steps, it still wants to maximize the mass production of the Hengchi 5. Evergrande announced on November 10 that it had signed a placing and subscription agreement with the placing agent to place 174830000 shares at HK $2.86 each on an old-to-new basis, with a total expected proceeds of about HK $500m. Evergrande said that the company plans to use the proceeds collected specifically for the research, development and manufacturing of the group's new energy vehicles, so as to lay the foundation for the smooth commissioning of Hengchi new energy vehicles.

At present, capital is still the main factor affecting the mass production and listing of Evergrande. According to the first half of the year, Evergrande lost 4.82 billion yuan, compared with a loss of 2.46 billion yuan in the same period last year. Cash and cash equivalents were 9.577 billion yuan, restricted cash was 2.936 billion yuan, accumulated losses were 17.8 billion yuan, and net current liabilities were 13 billion yuan.

Evergrande's road to building cars is not smooth at all, and the technology bastions accumulated by buying and buying are constantly being sold through selling. However, for Evergrande, the mass production and listing of Hengchi 5 is only the first step, and the construction of its follow-up service stores, the construction of charging facilities and the technical research, development and upgrading of up to 9 models all need a lot of financial support. even if Evergrande is the head of a real estate enterprise, under the influence of the debt crisis, it needs to achieve "self-hematopoiesis" as soon as possible. But the future is also very uncertain.

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