Evergrande fulfilled the "dream of building a car"? Hengchi 5 off the line of doubts, next year can be large-scale delivery

The news that Evergrande Automobile's first model, Hengchi 5, rolled off the production line again.

"Hengchi 5 officially rolled off the production line at its Tianjin factory on December 30." After the success report was made public, there were reports to refute the rumors: this is not a downline, but a celebration ceremony for the production line to run through. For a time, whether Hengchi 5 went offline became a mystery.

But in any case, the arrival of Hengchi 5 is already a "nailed- and down-to-earth plan" in 2022. As early as October this year, Evergrande Automobile planned to strive to let Hengchi roll off the production line in 2022. Not long ago in November, Evergrande Automobile had declared Hengchi to the Ministry of Industry and Information Technology.

Looking back at the end of 2019, Xu Jiayin, chairman of the board of directors of Evergrande Group, said at the global strategic partner summit of new energy vehicles that Evergrande Automobile will achieve annual production and sales of more than 1 million vehicles in 2025 and more than 5 million vehicles by 2035.

The news that Hengchi 5 has come is frequent, can Evergrande Automobile's "car-making dream" of that year be realized?

On December 31, the Beijing News shell financial reporter called Evergrande Group and Evergrande Automobile, but the phone could not be connected.

Two models have been declared, Hengchi is coming?

What kind of car is Hengchi 5?

Shell financial reporter saw that as early as November 10, Evergrande's two models have been declared, both are Hengchi brand pure electric passenger cars. According to the information disclosed by the Ministry of Industry and Information Technology, the first model with a product number of HDE6470BEVA1F is 4725mm, 1925mm and 1688mm in length, width and height, with a wheelbase of 2780mm, a total vehicle mass of 2380kg, and a maximum speed of 180km/h.

According to reports, this pure electric new energy vehicle, ABS controller model for Bosch Automotive Parts (Suzhou) Co., Ltd. production of ESP9, using Ningde Times New Energy Technology Co., Ltd. and Jiangsu Times New Energy Technology Co., Ltd. lithium iron phosphate battery.

The car drives the motor peak power of 150kW, rated power of 60kW, optional includes side radar, exterior mirror camera, rim modeling, different color trim strips, monochrome body, the car is equipped with on-board video driving record system (DVR), optional ETC on-board device.

The other model is 4725mm, 1925mm and 1676mm in length, width and height, with a wheelbase of 2780mm, a total vehicle mass of 2380kg, and a maximum speed of 180km/h. Like the previous model, the car is also a pure electric new energy vehicle, the ABS controller model is the ESP9 produced by Bosch Automotive Components (Suzhou) Co., Ltd., using the lithium iron phosphate battery of Ningde Times New Energy Technology Co., Ltd. and Jiangsu Times New Energy Technology Co., Ltd. The drive motor has a peak power of 150 kW and a rated power of 60 kW.

On August 28, 2019, Hengchi New Energy Vehicle was unveiled and was pinned on by Evergrande with thousands of hopes. In the quarter-finals of the AFC Champions League that day, the players wore jerseys with white characters on a red background and two big words printed "Hengchi".

On August 3, 2020, Evergrande Automobile held a press conference in Guangzhou and Shanghai at the same time, and released the first six cars of Hengchi in one go, including Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5, Hengchi 6, etc. A number of new cars were officially unveiled.

The above six models include two sedans, three SUVs and one MPV, which can be said to span a variety of passenger car models.

Soon after, on November 10, Evergrande Automobile officially released the Hengchi logo, which was composed of "Golden Lion", "Blue Sky" and "Red Ball". Evergrande Automobile said that the meaning of this logo is "to protect the blue sky, win the Red Sea, the lion of the East, and be proud of the world". The following day, Evergrande Automobile announced the naming system of the Hengchi series.

Entering March 25 this year, Evergrande Automobile held a Hengchi intelligent network conference, and black scientific and technological achievements such as intelligent cockpit, supercomputer power platform, and intelligent ecosystem were unveiled. Not only that, Evergrande Car also has a BAT blessing. The H-SMART OS Hengchi Intelligent Networking System announced at the conference is an intelligent ecosystem jointly developed by Evergrande Automobile, Tencent and Baidu.

In April this year, when Evergrande Automobile participated in the Shanghai Auto Show, Hengchi was also on the same side.

Dai Lei, executive vice president of Evergrande Automobile, publicly introduced at that time that the maximum endurance of all Hengchi models reached 700 kilometers, and some models exceeded 800 kilometers.

Liu Yongzhuo, president of Evergrande New Energy Automobile Group, publicly stated that in the fourth quarter of this year, Hengchi Automobile will fully start trial production and deliver on a large scale next year, in addition, power battery products with high specific energy, high safety, long life, ultra-fast charging and other characteristics will also be mass-produced in the second half of this year. Market rumors say that Hengchi's mass production may be placed in Tianjin.

In the past 4 years, the "car-making dream" once hit a wall, and it was determined to produce and sell more than one million in 2025

Evergrande's dream of building a car can be traced back to 3 years ago.

In February 2018, Evergrande's first automobile company, Ruichi Intelligent Automobile (Guangzhou) Co., Ltd., was registered and established. In June, Xu Jiayin invested in Jia Yueting's car-making plan through Evergrande Health.

Evergrande Health announced that the company agreed to acquire 100% of the shares of Hong Kong Shiying Company and the company loan for a total consideration of HK$6.7467 billion, indirectly obtained 45% of the equity of Smart King Company, and officially joined The Day Future (hereinafter referred to as Faraday Future, FF), a car-making company owned by Jia Yueting.

Xu Jiayin even said during his inspection of FF in Los Angeles that investing in FF was definitely the right decision.

With the deepening of cooperation between the two sides, in July of that year, the name of Ruichi Intelligent Automobile (Guangzhou) Co., Ltd. was directly changed to Evergrande Faraday Future Intelligent Automobile (Guangdong) Co., Ltd. In October of that year, the company also invested in the establishment of Evergrande Faraday Future Automobile Technology (Beijing) Co., Ltd., with a registered capital of 50 million yuan and a shareholding ratio of 100%.

However, the good times did not last long, and with Jia Yueting quickly burning up 800 million US dollars, Evergrande Health had no choice but to terminate the cooperation in October 2018.

Evergrande's "car-making dream" ate the closed door soup for the first time. However, it did not stop there.

In just a few months, in January 2019, the company was no longer associated with the five words "Faraday Future" and changed its name to Evergrande Intelligent Automobile (Guangdong) Co., Ltd.

By July 2019, Evergrande Faraday Future Intelligent Automobile (China) Group Co., Ltd., which was originally a shareholder of the company, was also renamed Evergrande Kailong Intelligent Automobile Group Co., Ltd.

In January 2019, when Evergrande Automobile and Faraday Future were separated, Evergrande New Energy Vehicle Investment Holding Group Co., Ltd. was established with a registered capital of 2.515 billion US dollars.

With the launch of Hengchi, as of now, the two major shareholders of Evergrande New Energy Vehicle Investment Holding Group Co., Ltd. are Evergrande New Energy Automobile Holdings (Hong Kong) Co., Ltd., which holds 99.3953% of the shares, and Evergrande Hengchi New Energy Automobile (Guangdong) Co., Ltd., which holds 0.6047% of the shares.

Since then, Evergrande Automobile has begun to recruit on a large scale around the world.

On September 9, 2019, Evergrande New Energy Vehicle Global Research Institute released recruitment information, planning to recruit 8,000 top experts and technical elites in the new energy automobile industry, working in nine countries such as China, Sweden, Germany, and the United Kingdom, covering all aspects of the entire industrial chain of new energy vehicles, including the Internet of Vehicles, automatic driving and other fields.

At that time, Evergrande Group was full of spirit.

In November 2019, Xu Jiayin said at the New Energy Vehicle Global Strategic Partnership Summit that Evergrande Automobile will become the world's largest and strongest new energy vehicle group in 3-5 years, achieving annual production and sales of more than 1 million vehicles by 2025 and more than 5 million vehicles by 2035.

On August 26, 2020, the listed company also changed its name to this end. At that time, Evergrande Health issued an announcement that the listed company officially changed its name to Evergrande Automobile.

The announcement said that Evergrande Health Industry Group Co., Ltd. is making every effort to develop the new energy vehicle business to build a whole industrial chain covering new energy vehicles such as power batteries, powertrains, vehicle manufacturing, automobile sales and smart charging, and in view of the fact that new energy vehicles have become the most important business of the group, the board of directors proposed to rename the company to Evergrande Automobile.

Invested nearly 30 billion yuan in 3 years The net loss in the first half of the year exceeded 4.7 billion

The speed of burning money in the car-making movement is unimaginable.

Until August 27 last year, Evergrande Automobile held an online interim results conference, at which the management said that in order to build cross-border cars, Evergrande Group invested 14.7 billion yuan in 2019, planned to invest 5.7 billion yuan in 2020, and is expected to invest 9 billion yuan in 2021.

Overall, from 2019 to 2021, Evergrande is expected to invest about 29.4 billion yuan in three years.

However, Shell Financial Reporter checked Evergrande Automobile's 2020 annual report and found that Evergrande Automobile's annual revenue in 2020 was 15.487 billion yuan, an increase of 175% year-on-year, and achieved gross profit of 2.695 billion yuan, an increase of 43% year-on-year, and the company's net loss during the reporting period was 7.665 billion yuan.

Among them, the new energy vehicle business had a gross profit of -118 million yuan and a net profit of -5.220 billion yuan in 2020. Evergrande Automobile has invested a total of 47.4 billion yuan in the new energy automobile industry, of which 24.9 billion yuan has been invested in the fields of vehicle research and development and design, power batteries, automatic driving and intelligent networking, and 22.5 billion yuan has been spent on factory construction.

Evergrande Automobile's 2021 annual report shows that the company achieved revenue of 6.92 billion yuan in the first half of the year, an increase of 53.5% year-on-year; the net profit attributable to the mother was 4.786 billion yuan.

In the context of the company's net loss, Evergrande Automobile continued to raise funds.

On September 15, 2020, Evergrande Automobile announced that it would raise nearly HK$4 billion through the placement of new shares to support the development of the new energy vehicle business.

According to reports, the total number of new shares placed at that time was 176 million shares, and the number of new shares placed accounted for 2.04% of the total number of shares of Evergrande Automobile before the offering, accounting for 2% of the total number of shares after the offering, with a total amount of about HK$3.9995 billion, about HK$22.65 per share, and the post-investment valuation was about HK$200 billion.

For a time, all kinds of capital were actively pursued, and Tencent, Didi, and Sequoia Capital were all down.

On May 13 this year, Evergrande Automobile announced that the company placed 260 million shares of Evergrande Automobile at HK$40.92 per share, accounting for 2.66% of evergrande automobile's total share capital, with a share allotment amount of about HK$10.6 billion. The announcement shows that after the completion of the placement, the shareholding ratio of the top 20 shareholders of Evergrande Automobile has dropped to less than 90%, which meets the necessary conditions for Evergrande Automobile to enter the Hong Kong Stock Connect.

Beijing News shell financial reporter Lin Zi Editor Wang Jinyu Song Yuting Proofreader Guo Li