AutoBeta(AutoBeta.net)04/03 Report--

According to the information checked by Sky Eye in Trolley Report, on March 30, Evergrande Hengchi New Energy Automobile (Shanghai) Co., Ltd. added a new piece of information about the person subject to execution, with the execution target of more than RMB 8.1 million yuan. The execution court was the People's Court of Songjiang District of Shanghai City.

Evergrande Hengchi New Energy Vehicle (Shanghai) Co., Ltd. is located in Shanghai. It was established in May 2018 with a registered capital of RMB 3.01 billion and legal representative Jiang Xiaojun. Its business scope includes the development, manufacturing and sales of new energy vehicles and parts; motor vehicle maintenance; technical service, technology research and development, technical consultation, etc. in the field of automobile science and technology. The equity penetration chart shows that the company is jointly owned by Evergrande New Energy Automobile Investment Holding Group Co., Ltd. and Evergrande Ruibo New Energy Automobile Technology (Shenzhen) Co., Ltd., with 99.67% and 0.33% respectively.

According to the information checked by Sky Eye, as of the time of publication, Evergrande Hengchi New Energy Automobile (Shanghai) Co., Ltd. has 165 pieces of risk information, 11 pieces of information of executed persons, and the total executed amount exceeds RMB 291 million yuan. The executive courts include Shanghai City Songjiang District People's Court and Guangzhou City Intermediate People's Court. In addition, the company also has 3 discredited executees (laolai), with 100% non-performance ratio;3 consumption restriction orders and final case information, with the outstanding amount exceeding 4.81 million yuan.

"Burning money to build cars" is the consensus of the automobile industry. Therefore, many enterprises will be more cautious when entering the bureau to build cars. Evergrande is different. Since entering the bureau to build cars, Evergrande has been called "RMB player" and "not short of money". Even when there is no car, Xu Jiayin has been confident that he will become the largest and strongest new energy automobile group in the world in the next three to five years and announced that "production and sales of 1 million vehicles in 2025." The goal is to produce 5 million vehicles by 2035."

Evergrande's dream of building cars began in 2018. In November 2019, Xu Jiayin announced that he would invest 45 billion yuan in building cars in the future, including 20 billion yuan in 2019, 15 billion yuan in 2020 and 10 billion yuan in 2021. In December 2019, at the signing ceremony of Evergrande's global strategic cooperation, Xu Jiayin called 206 automobile industry leaders and more than 1100 automobile industry chain executives. When the dozens of meters long signing cooperation document table was put on the stage, the real estate industry and automobile circle were all shocked. In the following time, Evergrande even directly put out nine products.

On August 3,2020, Evergrande Automobile released six brand-new models of Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6 in one breath, covering not only Class A to D models, but also passenger car models such as sedan, coupe, SUV, MPV and crossover; On February 10,2021, Evergrande Automobile further released three models of Hengchi 7, Hengchi 8 and Hengchi 9. So far, nine models have been arranged in the product matrix of Hengchi Automobile. As a brand of a newly entered automobile track, the product layout speed of Evergrande Automobile can be called "amazing".

However, the first model of Hengchi brand "Hengchi 5" was not pre-sold until July 6,2022. Only one model was launched for the new car. The pre-sale price of luxury version was 179,000 yuan. The first batch of 100 units was officially delivered on October 29,2022. New car pre-sale only 15 days orders have exceeded 37,000 vehicles, Hengchi new energy automobile group president Liu Yongzhuo also repeatedly for the new car momentum, said "Hengchi 5 market response is very good, better than expected, from the current Hengchi sold well has become a certainty." However, this is not the case. After the listing of Hengchi 5, the sales volume did not meet the market expectations, so Evergrande had to start a series of cost reduction and efficiency enhancement, including reducing the overall number of employees, arranging rest for some employees, salary reduction for some employees and layoffs, etc.

At the end of last month, Evergrande issued an announcement disclosing that more than 900 Hengchi 5 vehicles had been delivered as of March 23, and informed the outside world that Evergrande Group would face the risk of stopping production if it could not obtain new liquidity. Evergrande said in the announcement on the same day that in order to concentrate financial resources to support the mass production of Hengchi 5, the company continued to promote cost-saving measures, actively took layoff measures for National Electric Vehicle Sweden AB, a subsidiary of the Group, and optimized the employee structure. As of March 2023, Evergrande New Energy had a total of 2795 employees, compared with 3742 employees as of June 30, 2022. Evergrande's new energy vehicles will face the risk of stopping production without obtaining new liquidity. However, if the Group can seek financing of more than RMB 29 billion yuan in the future, it plans to launch a number of flagship models and is expected to realize mass production. Under this plan, the accumulated leveraged cash flow from 2023 to 2026 is expected to reach RMB minus 7 billion to RMB minus 5 billion.

Automobile losses are not uncommon in the automobile field, and Evergrande Automobile is no exception. Although Xu Jiayin is rich, he is also facing lack of money, which also means that Evergrande Automobile will stop production if it cannot obtain new liquidity. According to the annual report data of Evergrande Automobile, Evergrande lost RMB 1.429 billion yuan, RMB 4.426 billion yuan and RMB 7.394 billion yuan respectively during 2018-2020, that is to say, Evergrande has accumulated RMB 13.249 billion yuan in three years. According to the latest financial report, as of December 31,2021, Evergrande's total assets were RMB 59.521 billion yuan, total liabilities were RMB 58.830 billion yuan, and the asset-liability ratio reached 98.84%, almost insolvent.

Up to now, the trading of Evergrande shares has been suspended for one year. In April 2022, the trading of Evergrande shares was suspended, and so far, the trading has not resumed. At the same time, Tianyan information shows that several affiliated companies, including Evergrande New Energy Automobile Investment Holding Group Co., Ltd., Evergrande Hengchi New Energy Automobile (Shanghai) Co., Ltd., Evergrande Fengchi Power Technology (Shenzhen) Co., Ltd., Evergrande Group Co., Ltd., etc., have been forced to execute hundreds of millions of yuan.

Today, Hengchi Automobile announced that Hengchi 5 welcomes heavy OTA upgrade, upgraded version is H-SMART OS V1.4.0 software, after upgrading H-PILOT intelligent driving assistance system will be officially opened, and comprehensively improve intelligent driving, intelligent car, vehicle-machine interaction, three dimensions of driving experience. According to the data on compulsory insurance for new vehicles, 975 vehicles have been delivered since the launch of new vehicles, of which 519 were delivered in 2022 and 456 in the first two months of 2023.

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