Evergrande New Energy Vehicle Group released its 2023 half-year report on August 25, revealing revenue of 155 million yuan (about US$21 million) with a net loss of 6.9 billion yuan.
The automotive business contributed to an operating loss of 2.1 billion yuan, including loan interest of 510 million yuan. Additional losses of 1.11 billion yuan stemmed from the former real estate business and 3.7 billion yuan from non-operating factors like asset disposal and impairment. Evergrande New Energy Vehicle’s total assets were about 43 billion yuan, with liabilities of 76 billion yuan.
The EV business completely divested from the real-estate business in H1, reducing net debt by 43 billion yuan. A debt-to-equity swap is planned to reduce debt by a further 17 billion yuan. The company has only sold 760 vehicles this year. Administrative expenses decreased with widespread layoffs.
A US$500 million investment from the UAE (the United Arab Emirates) sovereign wealth fund will acquire about 27.5 percent of Evergrande New Energy Vehicle’s shares. This shift makes the auto manufacturer no longer a non-wholly-owned subsidiary.
Since entering the auto sector, Evergrande New Energy Vehicle has consistently reported losses. From 2018 to 2020, losses were only 13 billion yuan. In 2021 and 2022, the company managed to lose 84 billion yuan.
