[Epoch Times August 31, 2021](Epoch Times reporter Liu Yi comprehensive report) On August 30, Evergrande Automobile released its annual report for the first half of 2021, showing that as of the end of June, Evergrande Automobile had a net profit loss of 4.786 billion at the end of June. Yuan (RMB, the same below), Evergrande Auto lost 4.822 billion yuan overall.
The annual report shows that Evergrande’s revenue was 6.923 billion yuan, a year-on-year increase of 53.5%; among them, the health management revenue was 6.886 billion yuan, and the new energy automobile industry revenue was 36.98 million yuan, a year-on-year decrease of 30.22%; gross profit was 247 million yuan, a year-on-year decrease of 80.41%; The gross profit margin dropped from 27.99% in the same period in 2020 to 3.57% this year; the net profit loss attributable to the parent was 4.786 billion yuan, and the overall loss of Evergrande Automobile was 4.822 billion yuan, an increase of 96.25% year-on-year.
Caixin.com’s news on the 30th showed that as of June 30, 2021, Evergrande had 9.577 billion yuan in cash and cash equivalents, and 2.936 billion yuan in restricted cash; accumulated losses of 17.8 billion yuan and net current liabilities of 13 billion yuan. .
In terms of borrowings, as of June 30, Evergrande’s total loans amounted to RMB 35.996 billion, with a debt-to-asset ratio of 21.8%.
Although Evergrande’s revenue is declining, sales and marketing expenses have risen sharply. According to The Paper, as of June 30, the company’s sales and marketing expenses rose from 747 million yuan in the same period in 2020 to the current 1.451 billion yuan, a year-on-year increase of 94.21%.
Recently, China Evergrande has been in a liquidity dilemma, and the capital situation of Evergrande Auto has also deteriorated.
Evergrande Auto stated that the company is currently facing cash flow challenges. According to the previously announced timetable, Evergrande Auto plans to launch mass production models in the second half of 2021. Due to funding issues, the new energy vehicle mass production schedule may need to be postponed. . At the same time, individual health care projects and auto living space supporting projects are currently experiencing delays in payment of supplier construction payments, and some projects have been suspended. If these projects cannot be resumed, there may be project impairment and liquidity risks.
At present, Evergrande is facing debt pressure and the Chinese Communist Party has urged to step up the sale of assets to repay debts, and Evergrande Auto is currently a popular asset in the market. On August 10, China Evergrande announced that it was seeking to sell some assets, including some equity interests in Evergrande Auto.
Evergrande has adopted the “buy, buy, and buy” car manufacturing route, acquiring Guoneng Automobile by way of complete vehicle purchases. The parent company of Guoneng Motors owns part of the assets of Sweden’s Saab.
Caixin.com quoted a person familiar with the matter as revealing that Evergrande has set up a technical research and development team, but the main development work of the model is entrusted to an external organization. In 2019, Evergrande Automobile reached an agreement with several European vehicle development companies to develop more than ten models simultaneously. However, the cost of entrusting an external organization is high, and the existing team cannot be cultivated and exercised in the product development process.
The person familiar with the matter believes that Evergrande has indeed invested a large amount of money in car building, which may be more than the current leading company of new forces in car building, but the “spending money efficiency” is not high.
The predecessor of Evergrande Automobile is Evergrande Health Group, a holding company of China Evergrande Group. Beginning in 2017, China Evergrande deployed its automotive business through Evergrande Health. In August 2020, Evergrande Health was renamed Evergrande Auto, and the health business is still the main business of Evergrande Auto. In the first half of 2021, the new energy vehicle business accounted for only 0.53% of Evergrande’s revenue.
Currently, Evergrande Motor has three factories located in Tianjin, Shanghai and Guangzhou.
Editor in charge: Lin Congwen
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