AutoBeta(AutoBeta.net)03/23 Report--

On March 22, Evergrande held a meeting on Hengchi 5 production, at which Evergrande Chairman Xu Jiayin said: "the Automobile Group must work hard day and night, work hard for three months, and must achieve Hengchi 5 production on June 22." it will lay a solid foundation for the healthy and sustainable development of Evergrande. "

It is worth noting that on March 21, China Evergrande, Evergrande Motor and Evergrande property also issued an announcement on the Hong Kong Stock Exchange, temporarily suspending stock trading and serving as the middle index in the announcement. The reason for the suspension is "waiting for our company to publish a copy containing inside information. On March 22, China Evergrande, Evergrande property and Evergrande Automobile once again issued an announcement at the same time, saying that they expected to delay the publication of audited results for 2021 and continue to suspend trading of three shares. According to the announcement issued by Evergrande property, in the process of reviewing the financial report for the year ended December 31, 2021, the company found that the company had a deposit of about 13.4 billion yuan, and the pledge deposit for third parties had been enforced by the relevant banks. The company will set up an independent investigation committee and arrange to appoint experts to investigate the pledge deposit. At the same time, China Evergrande also said that in view of the operational and financial challenges facing the group, especially the debt pressure, the company's risk resolution committee is actively studying solutions and communicating with creditors.

On March 22, Evergrande Group held a global creditor conference call. Sean, executive director of Evergrande, disclosed at the meeting that Evergrande's foreign debt is equivalent to $22.7 billion. The company is actively cooperating with relevant departments to dispose of assets and strive for as much surplus value as possible to flow back to the company. Liang Lin, non-executive director of Evergrande, said that Evergrande is actively promoting the introduction of strategic investors in Evergrande Automobile and Evergrande property in order to maximize the interests of all parties. Evergrande is in extensive contact with potential investors in an effort to restore the value of Evergrande. From the Hengchi 5 production meeting and the global creditor conference call, it is not difficult to see that the mass production of Hengchi 5 has become the key to the value repair of Evergrande cars.

According to the earlier production capacity planning of Evergrande automotive products, Hengchi 5 positioning A-class SUV, the price is less than 200000 yuan, after the listing will be standard BMW X1, Audi Q3, Mercedes-Benz GLAs and other luxury entry-level models. As can be seen from the production capacity map of Evergrande automotive products, Hengchi 5 is positioned as an entry-level model with a price of less than 200000 yuan, which may be more easily accepted by consumers as the first model on the market. However, the road of mass production of Hengchi 5 is not easy. Previously, due to arrears of project payment, Evergrande's Tianjin factory even stopped work. Fortunately, after Evergrande put forward the goal of "working hard for three months" in October last year, the progress of Hengchi 5 has made remarkable progress. In order to let Hengchi 5 off the line smoothly, Evergrande also through the sales agent signed a placement and subscription agreement, the sale of e-Traction and other ways to raise funds.

In November 2021, in the 350th batch of new product announcement of "Road Motor vehicle production Enterprise and Product announcement" issued by the Ministry of Industry and Information Technology, Hengchi 5 LX finally appeared in the product catalogue with product models HDE6470BEVA1F and HDE6470BEVA0F respectively. However, Hengchi 5 did not pass the current announcement. On February 11, Hengchi 5 once again appeared in the new car announcement catalogue of the Ministry of Industry and Information Technology, and finally achieved positive results after a month of publicity. According to the latest batch of "recommended model catalogue for the promotion and application of new energy vehicles" issued by the Ministry of Industry and Information Technology, "catalogue of energy-saving new energy vehicles enjoying vehicle and ship tax relief" and "vehicle purchase tax exemption" Hengchi 5 is among them, which also means that Hengchi has obtained all the "customs clearance documents" of production and sales links and can be officially sold to the public.

In order to cater to the listing of Hengchi 5, Evergrande is also well prepared. Since the beginning of this year, a number of recruitment posters have been issued to hire auto sales consultants, channel management, digital operations, sales management and other personnel. In addition, a market price research table on Hengchi 5 was exposed earlier, and it is not difficult to see that Evergrande has begun to actively warm up for the listing of Hengchi 5.

On March 2, Evergrande established Hengchi New Energy vehicle sales Co., Ltd., its business scope includes: new energy vehicle exchange facilities sales; charging pile sales; electric vehicle charging infrastructure operation; network booking taxi business service and so on. According to relevant information, the legal representative of the company is Tang Lin, with a registered capital of 100 million yuan, and the company is 100% controlled by Evergrande New Energy Automobile Investment holding Group Co., Ltd. Industry insiders said that at this stage, Evergrande has bet all its core business on the automotive sector, and the mass production of Hengchi 5 is of great significance for Evergrande.

Reviewing the car-building process of Evergrande, it entered the bureau to build the car in 2017 and earlier chose to build the car in cooperation with Jia Yueting's FF. Later, because the two sides did not agree on the project, they finally parted ways. Since then, Evergrande has entered into new energy to build cars. Through buying and buying, Evergrande has acquired Carney New Energy, Hubei Tate Mechanical and Electrical Co., Ltd., e-Traction of the Netherlands, Protean of the British wheel motor company and other companies. Xu Jiayin once said publicly that the world attaches great importance to the development of new energy vehicles, the world attaches great importance to environmental protection in the future, and the trend of new energy vehicles replacing fuel vehicles is already very clear. In addition, it also shows that Evergrande strives to become one of the largest and strongest new energy vehicle groups in the world in 3-5 years. The mass production of Hengchi 5 may be an attempt to save itself for Evergrande at this stage. However, after Hengchi 5 mass production, how to sell will also be a big problem, after all, Evergrande automobile technology accumulation and brand influence is insufficient, whether Hengchi 5 can be recognized by the market remains to be verified by the market.

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