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

Evergrande announced on the Hong Kong Stock Exchange on March 23 that the Hengchi 5 was officially in mass production on September 16, 2022, and the first batch of mass production cars began to be delivered on October 29, 2022. As of the date of this announcement, Evergrande New Energy has delivered more than 900 Hengchi 5.

Evergrande said it had taken steps to cut costs, such as its workforce, in order to maintain basic business operations due to liquidity constraints. In order to concentrate financial resources to support the mass production of Hengchi 5, the company continued to promote cost-saving measures and took the initiative to reduce staff of National Electric Vehicle Sweden AB, a Swedish subsidiary of the group, to optimize the staff structure. Evergrande New Energy had 2795 employees as of March, compared with 3742 as of June 30, 2022. In the absence of additional liquidity, Evergrande New Energy vehicles will face the risk of stopping production, but if the group can seek financing of more than 29 billion yuan in the future, it plans to launch a number of flagship models and hopes to achieve mass production.

Hengchi is a new energy car-building project owned by Evergrande Group, dominated by Xu Jiayin, a real estate tycoon who once became the richest man in China. Xu Jiayin also spends a lot of money on car building, and under the car-building mode of "buying", "cooperation", "circle", "big" and "good", the cumulative investment has reached nearly 50 billion yuan.

Evergrande has shown great ambition in car projects. According to Xu Jiayin's previous plan, Evergrande hopes to achieve annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035, and strive to become the largest and most powerful new energy vehicle group in the world. "

On August 3, 2020, Evergrande simultaneously released six models in Shanghai and Guangzhou, covering all levels from A to D, covering cars, sedan cars, SUV, MPV, crossover and other categories. On July 6, 2022, Hengchi 5, the first production car of Hengchi New Energy, officially opened its pre-sale, and the deluxe version was pre-sold at 179000 yuan. At the press conference, Liu Yongzhao, president of Hengchi New Energy Automobile Group, praised "Hengchi 5 is the best pure electric SUV within 300000, including Bosch, mainland, Amboft, Ningde era and other well-known supply chain enterprises have participated in the production process of Hengchi 5", and said that "Hengchi big sale has become a foregone conclusion."

After the delivery of the Hengchi 5, officials had said that within 15 days after the pre-sale of the new car, the order had exceeded 37000, and the first batch of 10, 000 would be delivered by the first quarter of 2023. On the evening of December 30, 2022, Evergrande's announcement on the Hong Kong Stock Exchange burst the dream bubble. Evergrande said the Hengchi 5 was in mass production and had delivered 324 units to users. In addition, in order to save costs, the Group is implementing a series of cost-saving measures, including reducing the overall number of employees, arranging some employees to take a break, reducing the wages of some employees, and so on. The Group will continue to create favorable conditions for the mass production of Hengchi 5 with maximum efforts.

At the end of last year, there were rumors that Evergrande was laying off staff at its Tianjin plant, with plans to cut 60 per cent. Some employees have been interviewed internally, and some will go on leave. The HKEx announcement confirms the truth of the rumors to some extent.

In early 2023, Xu Jiayin, chairman of the board of directors of Evergrande Group, said in a letter to all Evergrande people, "as long as all Evergrande people work together and never give up, work hard and work hard, step by step, we will certainly be able to complete the task of Baojiao Building, repay all kinds of debts and resolve risks. It will certainly open a new chapter in the rebirth of Nirvana. "

Everything looks so pale and powerless, Evergrande is the top priority of China's Evergrande to open a "new chapter" of Nirvana rebirth, but now it seems to be difficult.

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