China Evergrande Group Reports Net Loss of 812 Billion Yuan in Past Two Years
July 18, 2023 – China Evergrande Group, one of China’s largest real estate developers, has recently issued reissued performance announcements for 2021, mid-2022, and 2022. According to IT House, the company’s data shows a total net loss of 812 billion yuan in the past two years.
The announcement comes as Evergrande New Energy Automobile Group Co., Ltd. revealed that it will convene a board meeting on July 26, 2023. During the meeting, the company will review and approve three financial performance announcements for the same time periods and its subsidiaries.
Earlier this year, Evergrande Automobile made headlines when it reported delivering over 1,000 new Hengchi 5 cars by the end of May. The production at Hengchi Automobile Tianjin factory had also resumed full-scale operations on May 23.
However, things haven’t been smooth sailing for the automaker. On April 24, an official announcement stated that the Tianjin factory had to halt the production of Hengchi 5 due to insufficient funds. As a result, Evergrande proposed selling issued shares of two subsidiaries, Huibao and FlamingAce, which hold 47 wellness space projects, to China Evergrande at a consideration of 2 RMB.
In August 2020, Evergrande Automobile Group unveiled its first six Hengchi models simultaneously in Shanghai and Guangzhou. The lineup included sedans, coupes, SUVs, MPVs, and crossovers, namely Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5, and Hengchi 6.
While Hengchi 5 was set to roll off the Tianjin factory in early 2022, there has been no update on the progress of the other planned models.
Back in November 2019, Xu Jiayin, chairman of the board of directors of Evergrande Group, ambitiously declared that the company aimed to exceed annual production and sales of 1 million vehicles by 2025 and 5 million vehicles by 2035, becoming the strongest new energy vehicle group.
As the company faces significant financial challenges, the market awaits further developments in Evergrande Group’s automotive endeavors.
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