Last year's income of 1.34 billion yuan was enough for one year

After a series of financial challenges and management changes, Evergrande Auto seems to be ushering in a turnaround?

Under Xu's leadership, Evergrande was once one of China's largest property developers, but with the outbreak of its debt crisis, both Xu's influence and Evergrande's market position took a heavy hit. However, Evergrande's latest developments seem to herald a new beginning, and the company is trying to shake off the shadow of the past and seek a breakthrough in the new energy vehicle market.

According to the financial report, as of December 31, 2023, Evergrande Automobile's total assets were about 34.851 billion yuan and total liabilities were about 72.543 billion yuan. Among them, borrowings were 26.484 billion yuan, trade and other payables were 43.012 billion yuan, and other liabilities were 3.047 billion yuan. Cash and cash equivalents amounted to approximately $128 million.

In 2023, the revenue will be 1.34 billion yuan, the gross loss will be 51 million yuan, and the net loss will be 11.995 billion yuan, a year-on-year decrease of 56.64%, of which the loss from discontinuation of operating business (i.e., divestment of real estate projects) will be 1.061 billion yuan, the non-operating loss such as asset disposal and asset impairment will be 6.384 billion yuan, and the operating loss will be 4.550 billion yuan.

Evergrande Auto said it has applied for a total of 3,512 patents in related research fields worldwide, of which 2,718 have been granted. Despite the operational difficulties, the company still plans to continue to promote the Hengchi 5 annual model and facelift under the condition of introducing strategic investors and funds in place, and the Hengchi 6 and Hengchi 7 will also actively invest in development, verification and mass production, and continue to develop new platforms and new models according to market demand to provide more intelligent electric vehicle products.

Hengchi 5 launched by Evergrande Automobile

The company also plans to improve the manufacturing level of the Tianjin manufacturing base to ensure high-quality production and delivery, and further expand sales channels, explore overseas markets, and improve after-sales service to enhance sales capabilities and user experience. However, Evergrande also warned that if the above plans and measures are not successfully implemented, the company may not be able to continue its business as a going concern.

Evergrande Auto also said in the announcement that the current cash flow forecast covers a period of no less than 12 months from December 31, 2023, and they believe that taking into account the above plans and measures, the group will have sufficient working capital to meet the debt obligations due within 12 months from December 31, 2023.

I have to say that after the fall of Xu Jiayin, Evergrande Automobile has actually shown signs of improvement? However, in today's more and more "volume" new energy vehicle market, Evergrande Automobile may not have a good time.