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On the evening of August 30, Evergrande released its results for the first half of this year. According to the financial report, as of June 30, 2024, Evergrande's revenue was 38.377 million yuan, down 75.17% from the same period last year; gross profit was 2.433 million yuan, down 103.99% from the same period last year; and the net loss totaled 20.257 billion yuan, an increase of 194.73% over the same period last year.

Of this total, revenue from the new energy vehicle business was 16.095 million yuan, down 62.7 percent from the same period last year. In the breakdown, the sales income of automobiles and auto parts was 5.54 million yuan, the income from technical services was 10.435 million yuan, and other income was 120000 yuan. In addition, the income from property sales was 22.282 million yuan.

At present, Evergrande has only one production model of Hengchi 5, and the data show that as of June 30, 2024, Evergrande Tianjin factory has produced a total of 1700 Hengchi 5 and delivered more than 1429 new energy vehicles.

As of June 30, 2024, Evergrande's cash and cash equivalents were only 39 million yuan; total assets were 16.369 billion yuan; total liabilities were 74.35 billion yuan, of which 26.59 billion yuan were borrowed, trade and other payables were 46.695 billion yuan, and other liabilities were 1,065 million yuan. In other words, Evergrande has been seriously insolvent and is facing tremendous financial pressure.

According to the results of the first half of the year, Evergrande's half-year loss has far exceeded the annual loss in 2023. For comparison, Evergrande lost about 12 billion yuan in 2023, with total assets of 34.851 billion yuan and liabilities of 72.543 billion yuan at that time.

Evergrande said in its financial announcement that Evergrande is in a more tight financial position than in 2023 and that it must get a lot of financial support in the future and take measures to arrange for some staff to take a holiday in order to reduce operating costs. In addition, Tianjin manufacturing base, Shanghai manufacturing base and Guangzhou manufacturing base all carry out equipment maintenance and management according to the downtime management system and plan.

Evergrande has been trapped in the capital chain for a long time, and it also faces a series of problems, such as factory shutdown, subsidiary bankruptcy restructuring, survival crisis and so on. At present, its situation is very difficult, but Evergrande did not give up its survival. Instead, it tried to save itself by introducing potential third-party investors, but unfortunately, this measure did not achieve results. On August 26, Evergrande announced that discussions between potential sellers, potential buyers and the company were still ongoing, but there was no sale and purchase agreement between potential sellers and potential buyers, and no credit agreement between potential buyers and the company. Evergrande highlighted the uncertainty of the potential deal.

The acquisition of some shares in Evergrande will begin on May 26, when Evergrande announced that 29 per cent of the shares would be acquired by potential buyers, who would provide credit to Evergrande to finance the company's continued operation and development of its electric vehicle business. But three months have passed since the news, but it has been slow to identify the exact acquirer, which makes Evergrande's prospects even more confusing.

The above-mentioned "mystery buyer" is seen as the last straw by Evergrande, which is mired in the debt crisis, but there is still a lot of uncertainty about who will be the successor. At the same time, some people in the industry believe that even if some shares of Evergrande are acquired, it will be difficult to return to the mainstream of the market. Since cross-border car construction, Evergrande has accumulated losses of more than 110 billion yuan, but its only Hengchi 5 a production model, and sales are not good, so far the cumulative delivery of only about 1429 vehicles, there is a very low sense in the car market. Against this backdrop, how far Evergrande, which is under huge debt pressure, can go may soon be the answer.

Evergrande's Hong Kong shares closed at HK $0.290, up 7.41%, with a total market capitalization of 3.145 billion yuan.

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