The net loss of Evergrande Health invested in new energy vehicles was 3.2 billion yuan.

The net loss of Evergrande's new energy business was 3.2 billion yuan, which was used for purchasing fixed assets, equipment and research and development.

Selling subsidized cars

On the evening of March 22nd, Evergrande Health (78.HK) issued a profit warning announcement, saying that the net loss in 219 was about 4.9 billion yuan, which was further expanded compared with 1.428 billion yuan in 218, including a net loss of 3.2 billion yuan in new energy business.

Evergrande Health said that the loss was mainly due to the expansion of new energy vehicle business, which was in the investment stage, and the increase of related expenses and interest expenses such as purchasing fixed assets and equipment, research and development. At present, Evergrande has invested more than 3 billion yuan in car-making business, launched its own brand of new energy vehicles, Hengchi, and is committed to creating a closed loop of the whole industrial chain of "production+technology+sales".

unlike the new car-making talent who has been continuously investing, Evergrande has been rooted in the real estate industry for a long time. According to the operating data disclosed by Evergrande in January, Evergrande achieved the sales target of 6 billion yuan, and realized the contracted sales of about 61.6 billion yuan.

at the beginning of this year, under the influence of the COVID-19 epidemic, China Evergrande took the lead in launching the "selling houses online" model, and announced on February 16th that all the buildings in China would enjoy a 75% discount from February 18th to 29th.

according to the sales data released by Evergrande on March 5th, the contracted sales amount in February was 44.73 billion yuan, up about 18% year-on-year; The contracted sales area is about 5.138 million square meters, up about 154% year-on-year.

according to the announcement, Evergrande has set a sales target of 65 billion yuan in 22, with an estimated growth rate of 8.1%.

Xia Haijun, President of Evergrande Group, said at the investor performance briefing in 219 that "the sales revenue and profit generated by land projects will cover the loss of car building"

Money will be spent on car building first

Xu Jiayin, Chairman of Evergrande Group, said that the investment budget of Evergrande's new energy vehicles is 45 billion in three years, including 2 billion in 219, 15 billion in 22 and 1 billion in 221, and it will be invested in China.

Xu Jiayin said that Evergrande's road construction is simply "buying and selling, combining and circling, being big and big, being good and good". Xu Jiayin said at the Global Strategic Partner Summit of Evergrande New Energy Automobile Group. "We have bought all the core technologies that we can buy and all the enterprises that we can buy. Evergrande, which has nothing in terms of building cars, has to take an unusual road, that is, change lanes and overtake."

Xu Jiayin said that changing lanes and overtaking depends on continuous investment and using its own cross-border resources. So far, Evergrande has signed strategic cooperation agreements with Bosch, Magna, Mainland China, ZF, ThyssenKrupp, Jettaggart, BASF and other top 6 auto parts companies in the world.

Evergrande New Energy made many investments in 219, such as Zhengzhou, Nansha, Tianjin and Shenyang. Investment projects are also "bought by buy buy" as Xu Jiayin said, from the research and development of hub motors, electronic controls and batteries, to vehicle production bases and business sales.

Evergrande said that Hengchi's first car, "Hengchi 1", will be launched in the first half of this year, and the full range of Hengchi products will be mass-produced in 221.

This article comes from the author of Chejia, car home, and does not represent car home's standpoint.