Evergrande Auto’s NEV business earns 53 million yuan of first-half revenue

Shanghai (Gasgoo)- China Evergrande New Energy Vehicle Group Limited (Evergrande Auto), the electric car arm of China Evergrande Group, announced that its total revenue for the first half of the year reached 4.51 billion yuan ($655,723,332), surging 70% over a year ago, and the gross margin skyrocketed 107% to 1.262 billion yuan ($183,486,218).

For the first six months of 2020, the company saw its net loss widened to 2.457 billion yuan ($357,231,092) from 1.984 billion yuan ($288,460,109) for the previous year.

(Photo source: Evergrand Health's WeChat account)

The first-half revenue gained from new energy vehicle (NEV) business amounted to 53 million yuan ($7,705,840), plunging 81.34% from a year earlier. The majority contribution stemmed from the sale of lithium batteries and relevant technology services, which generated 26.607 billion yuan ($3,868,476,872) and 23.411 billion yuan ($3,403,800,205) worth of revenue respectively.

The company has officially changed its name to China Evergrande New Energy Vehicle Group Limited from Evergrande Health Industry Group Limited, according to an announcement released on August 26, as the NEV has become its most important business.

Evergrand Auto said it has to-day established a full industrial chain for NEVs covering vehicle manufacturing, electric motor control, power batteries, vehicle sales, smart charging and shared mobility.

According to the interim financial report, the NEV business of the company and its subsidiaries (collectively called “the group” for short) has made a number of breakthroughs during the first-half 2020, including but not limited to:

(Gemera, photo source: Evergrand Health's WeChat account)

On March 3, 2020, the Gemera, the new energy super sport car jointly developed by the Group and Koenigsegg, made its world debut.

(Hengchi 1, photo source: Evergrande Group)

On August 3, 2020, the first six models under the Hengchi brand were revealed worldwide. They are named Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6, covering all classifications from segments A to D, as well as a full range of PV types, including sedan, SUV and MPV.

On August 7, 2020, the production bases in Shanghai and Guangdong were officially unveiled. Constructed in accordance with Industry 4.0 Standard, the two major bases have been equipped with 2,545 intelligent robots. At present, the entire manufacturing line has entered the stages of equipment installation and debugging.

Evergrande Auto said the Shanghai and Guangzhou bases are expected to be available for trial production by September 2020, and each of such production bases has a planned capacity of 200,000 vehicles for the first phase.

Besides, the Hengchi-branded models are planned for trial production in the first half of next year and the group will strive to achieve the mass production in the second half of 2021, according to the financial results.