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On December 22, Hengchi announced a year-end time-limited preferential policy. Users can get a deposit of 10,000 yuan for the purchase of Hengchi 5 models, equivalent to a price reduction of 10,000 yuan.

The Hengchi 5, the first production car of Hengchi New Energy, went on sale in August 2022 with a price of 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." In terms of power, Hengchi 5 is driven by a single motor, the maximum power 150kw, and the mileage of 602km.

As the first production car of Evergrande New Energy, the market performance of Hengchi 5 is not good. Terminal sales data show that Hengchi 5 sold 937 vehicles in the first 11 months of 2023, with an average monthly sales of less than 100, which is a huge gap from what Evergrande executives call "big sales have become a fixed deposit". For Evergrande, due to its own situation, even if the production capacity has been raised, Evergrande still has to consider, who should Evergrande sell its products to?

This is mainly due to the poor performance of Evergrande itself. On December 30, 2022, Evergrande said that 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.

On March 23, 2023, China Evergrande said that Evergrande New Energy vehicles had taken measures to cut costs in order to maintain basic business operations due to tight liquidity. 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.

At present, the competition in the new energy vehicle industry is extremely fierce, and many multinational joint venture brands are struggling, not to mention the heavily indebted real estate cross-border car companies, while returning to the product itself, Hengchi 5 positioning compact pure electric SUV is not expensive compared with the same class of models, and the product configuration is not very poor, but Hengchi has not formed its own advantages. Hengchi 5's power, range, auxiliary driving and so on can only be regarded as regular, and it is difficult to show enough competitiveness compared with BYD, Tesla and other brand products. Most crucially, China Evergrande is heavily in debt, and Xu Jiayin, chairman of the board, has been forced to take enforcement measures. How Hengchi can persuade consumers to buy the products of such a company is another big problem.

In addition, Evergrande lost money year after year, with a cumulative loss of 84.008 billion yuan, including a net loss of 56.344 billion yuan in 2021 and 27.664 billion yuan in 2022. As of December 31, 2022, Evergrande had a cumulative loss of 98.906 billion yuan, of which from 2018 to 2020 Evergrande lost 1.429 billion yuan, 4.426 billion yuan and 7.394 billion yuan respectively. In terms of debt, by the end of 2022, Evergrande's total debt was 183.872 billion yuan, excluding 3.314 billion yuan of prepaid accounts, the debt scale was 180.558 billion yuan, while Evergrande's total assets of 115.22 billion yuan, has been seriously insolvent.

Previously, Evergrande had given "three major goals". The scale goal is to build Evergrande into the largest and strongest new energy vehicle group in the world, with annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035. Of course, there is a good chance that this goal will fail.

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