Evergrande NEV earns RMB 130 million in 2022 from its main operations, well below RMB 2.5 billion in 2022 and RMB 15.5 billion in 2020.
While all eyes were focused on Volkswagen's investment in Xpeng (NYSE: XPEV) yesterday, China Evergrande Group's electric vehicle (EV) unit Evergrande New Energy Vehicle Group (Evergrande NEV) posted horrendous loss figures for the past three years.
Evergrande NEV lost RMB 27.7 billion ($3.9 billion) in 2022, albeit narrowed by 51 percent from RMB 56.3 billion in 2021, according to a Hong Kong Stock Exchange announcement yesterday.
As of December 31, 2022, Evergrande NEV's accumulated losses and shareholders' losses were RMB 98.9 billion and RMB 68.7 billion, respectively.
Cash and cash equivalents owned by Evergrande NEV as of December 31, 2022 was RMB 220 million.
Evergrande NEV had a loss of RMB 56.3 billion in 2021, and its accumulated losses and shareholders' losses as of December 31, 2021 were RMB 71.2 billion and RMB 39.3 billion, respectively.
In 2020, Evergrande NEV had a loss of RMB 7.7 billion, and its accumulated losses and shareholders' losses as of December 31, 2020 were RMB 13 billion and RMB 39.3 billion, respectively.
Its revenue from main operations in 2022 was RMB 130 million, much lower than RMB 2.5 billion in 2022 and RMB 15.5 billion in 2020.
Evergrande NEV currently has only the Hengchi 5, the only model under the Hengchi Auto brand, which opened for delivery on October 29, 2022.
A Hong Kong stock exchange announcement on April 24 said Evergrande NEV would put production of the Hengchi 5 on hold, after it had already delivered more than 900 units of the model to consumers.
The group, if it can seek more than RMB 29 billion in future financing, will plan to launch a number of flagship models and mass produce them, the announcement said at the time.
On June 20, Evergrande NEV said it resumed production of the Hengchi 5, a model that saw more than 1,000 deliveries by the end of May.
Trading of Evergrande NEV's shares in Hong Kong was suspended from April 1, 2022, and a time for restarting trading has not yet been set.
($1 = RMB 7.1274)