Evergrande makes a new move in car manufacturing, and spends 1.5 billion to establish two new companies

Evergrande makes a new move in car manufacturing, and spends 1.5 billion to establish two new companies
Following the announcement in early June to acquire the remaining 17.6% stake in NEVS for US$379.5 million, Evergrande has recently revived new moves.
According to the company’s data, on July 10, Evergrande Hengchi New Energy Automobile Technology (Guangdong) Co., Ltd. was established with a registered capital of RMB 500 million and the legal representative is Zhou Bin. The company is 100% controlled by Evergrande New Energy Automobile Investment Holding Group Co., Ltd., and its business scope includes: new energy vehicle-related technology research and technology development services; software product development and production; information technology consulting services; auto parts and accessories manufacturing, etc. business.
In addition, on July 8th, Evergrande New Energy Automobile Investment Holding Group Co., Ltd. also established a new company in Guangxi. The company is called Evergrande New Energy Automobile (Guangxi) Co., Ltd., with a registered capital of RMB 1 billion and legal representative The man is Qin Liyong. The business scope is similar to the aforementioned Guangdong subsidiary, and is also wholly-owned by Evergrande New Energy Automobile.
According to statistics, since January 2019, the number of subsidiaries wholly-owned by Evergrande New Energy Automobile has reached 35, with a total investment of more than 25.5 billion yuan.
In 2018, Evergrande Group began to get involved in new energy vehicles and called out the goal of “becoming the world’s largest and strongest new energy vehicle group in 3-5 years”. In order to achieve this goal, Evergrande began to frequently acquire upstream and downstream companies in the automotive industry chain in 2019, and quickly completed the industrial chain layout of new energy vehicle R&D and manufacturing, powertrains, and power batteries through “buy, buy, and buy” all the way.
In January 2019, Evergrande Health spent US$930 million to acquire a 51% stake in the Swedish Electric Smart Vehicle Manufacturing Company (NEVS), which became the owner of National Automotive, and obtained a majority of board seats. In January of the same year, Evergrande paid 150 million euros (approximately RMB 1.15 billion) to invest in Koenigsegg, and another US$150 million (approximately RMB 1.01 billion) to establish a joint venture project company with Koenigsegg and was authorized to use Koenigsegg. Sec’s technology patents and brand. In the next six months, Evergrande also spent 1.56 billion to acquire a 58.07% stake in Shanghai Canai New Energy, a power battery company, and a 70% stake in Hubei Tate Electromechanical. It also holds a wholly-owned Dutch hub motor company e-Traction and becomes a shareholder. British Protean Hub Motor Company.
On June 10 this year, Evergrande Health announced the acquisition of a 17.6% stake in NEVS held by National Modern for US$379.5 million. NEVS will become a wholly-owned subsidiary from an 82.4% subsidiary of Evergrande Health.
The day after the announcement of the acquisition (June 11), Evergrande Health’s share price soared 14.35% to 7.25 Hong Kong dollars per share, closing at 6.93 Hong Kong dollars. As of the close of the market on July 14, Evergrande Health’s share price was reported at HK$25.25 per share, a cumulative increase of nearly three times, and the total market value exceeded HK$200 billion.
Industry analysts pointed out that the rise in Evergrande Health’s share price has not only benefited from its rapid deployment of capital in the electric vehicle industry chain, but also benefited from the overall improvement of the electric vehicle industry this year, including Tesla, Weilai Automobile and other share prices. Reached a historical high.
The 2019 performance report released by Evergrande Health showed that last year’s new energy vehicle business had a net loss of RMB 3.31 billion, a loss that nearly doubled year-on-year. From 2018 to now, Evergrande’s new energy vehicle business has lost more than 5 billion in total. The management of Evergrande Health stated that the loss of the new energy vehicle business was mainly due to the investment stage.
According to Evergrande’s health plan, Evergrande’s first car “Hengchi 1” will be unveiled this year and will be fully mass-produced in 2021; the Guangdong and Shanghai production bases will be completed and put into production in the second half of this year, and the first phase of planned production capacity will be 20%. Million vehicles. Some analysts say that with the gradual appearance of the “Hengchi” series of models and the completion of the two major domestic production bases, Evergrande Health will turn losses into profits and even grow into the next trillion-dollar new energy vehicle company.