By LIU Jiaxin
After a 16-month trading suspension, China Evergrande New Energy Vehicle Group has finally posted its 2021 financial results.
The NEV company issued financial reports for the full year of 2021, the mid-year of 2022, and the full year of 2022. In 2021, the firm incurred a loss of 56.3 billion yuan (US$7.9 billion). In 2022, it suffered a loss of 27.6 billion yuan, resulting in a total loss of 84 billion yuan over the two-year period.
Evergrande's car business structure is complicated – the car unit is called Evergrande New Energy Auto (Evergrande Auto). The Evergrande Group and Evergrande Auto are listed separately on the Hong Kong Stock Exchange.
In 2022, Evergrande's total NEV revenue was roughly 130 million yuan, and that's a lot more than the business made in 2021. The company’s cash and cash equivalents were reported to be 220 million yuan, with accumulated losses amounting to 98.9 billion yuan, and shareholders’ losses at 68.6 billion yuan, it's hard to see a sustainable future for Evergrande’s new energy brand, Hengchi.
Evergrande NEV had a total liability of 183 billion yuan at the end of last year with 11.6 billion yuan of overdue debts and 18.5 billion yuan in unpaid bills. The total assets amounted to 115 billion yuan, revealing a black hole in the company of at least 65 billion yuan.
The financial crisis has completely disrupted Hengshi production, but apparently oblivious to the snowballing calamity, Evergrande has announced plans for the Hengchi 6 and 7.
The company remains under financial strain, and negotiations are ongoing with various institutions to renew existing loans and raise short-term or long-term financing for the coming year.
