Evergrande Group plans to sell partial interests in Evergrande Auto

Beijing (Gasgoo)- China’s property conglomerate Evergrande Group is in talks with several independent third-party investors about selling its partial assets, including part of its interests in China Evergrande New Energy Vehicle Group Limited (Evergrande Auto) and Evergrande Property Services Group Limited, the group said in an announcement on Tuesday.

But it has not determined or signed up any specific plan or formal agreement yet, the group added. On the same day, Evergrande Auto made a similar announcement.

Photo credit: Hengchi, EV brand of Evergrande Auto

Just a day earlier, Evergrande Auto said it expects the net loss of the first half of this year to be doubled to RMB4.8 billion. The main reason for the loss is the expansion of its new energy vehicle (NEV) business, which still needs substantial investment to buy fixed assets and equipment and invest more in R&D. The full first-half results will be published at the end of August.

In March this year, Evergrande Auto said it had invested RMB47.4 billion in new energy vehicle business while the sum for the design and development of complete vehicles, power battery, autonomous driving and connected technologies reached RMB24.9 billion.

According to its plan, it aims to develop 14 new energy models whose mass production will begin from the end of 2021 or the beginning of 2022 and targets an annual production of 1 million units by 2025.