The following is the What did Evergrande do in 2020 except that hengchi 1 completed the winter test and didn’t sell a car? recommended by recordtrend.com. And this article belongs to the classification: Industry information.
March 28 news (Li Haoyuan) on March 25, Evergrande motor released its annual performance announcement for 2020. As we all know, Evergrande motor has not sold a single car at present, but even with psychological preparation, the first page of this financial report can still confuse you.
First of all, Evergrande is a listed company in Hong Kong stock market, which is beyond the expectation of many friends. On August 26, 2020, Evergrande changed the name of Evergrande Health Industry Group Co., Ltd. to China Evergrande New Energy Automobile Group Co., Ltd., making Evergrande listed on the main board of Hong Kong stock exchange.
Therefore, although the name is “Hengda automobile”, there are actually two major businesses, one is the main energy vehicle division now (in China and other countries), the other is the “health management division” of Hengda health (in China, “Internet plus” community health management, international hospitals, and maintenance). Elderly and rehabilitation industry). It is worth mentioning that Evergrande entered the automobile industry as early as June 2018 through acquisition, and it also has these two businesses in Evergrande health’s financial report in 2019. So what are the changes of Evergrande’s two major businesses in 2020 compared with 2019?
The answer is: health management revenues are more than three times higher than in 2019, while new energy revenues are less than a third of that in 2019.
In the figure below, I list the specific revenue of the two types of business (unit: RMB 1000). We can see that the revenue growth of the health management division comes from the substantial increase of the sales volume of health care space. The financial report explains that this is the revenue growth from “Evergrande health care Valley”. At present, there are 29 “Evergrande health care Valley” in the country, while the new energy and steam Industry Co., Ltd The sharp drop in the revenue of the car division is due to the decrease in sales of lithium batteries. That is to say, due to the upgrading of new batteries purchased by Evergrande, this year’s main task is to clear the inventory of existing batteries.
Although it is understandable, the huge contrast of revenue changes is still easy to make people feel like “selling dog meat with sheep’s head”. However, from the perspective of cost, Evergrande has indeed made a heavy investment in new energy vehicles.
In the whole year of 2020, Evergrande has a total loss of RMB 7.665 billion, much higher than that of RMB 4.947 billion in 2019. These losses are concentrated in the new energy vehicle division, while the health management division has a profit of about RMB 800 million before tax. According to the financial report, the new energy vehicle division generated huge operating losses, including 2.744 billion yuan of shareholder loan interest expenses, 2.28 billion yuan of R & D and advertising expenses, and 1.04 billion yuan of goodwill and intangible assets impairment losses.
Compared with 2019, the sales and marketing costs, as well as administrative expenses of Evergrande automobile will increase by more than 12 billion yuan in 2020, mainly focusing on sales space expenses, employee welfare expenses (including directors’ remuneration), R & D expenses, advertising promotion, intangible assets impairment and other items.
In addition, from the perspective of assets and liabilities, compared with 2019, the total assets of Evergrande motor increased by about 56.6 billion yuan in 2020, of which more than 50 billion came from the new energy vehicle division. However, the financial report does not specifically indicate what these assets are. It can only be determined that about 32 billion of the total assets increase comes from “properties under development”. In addition, the property, plant and equipment increase by about 7 billion, and the completed properties held for sale increase by nearly 10 billion
Different from other auto companies, because there is no actual sales, it is difficult for us to see the background of Evergrande through a piece of financial report. On the other hand, Evergrande is intensively publicizing and “touching porcelain” Tesla, claiming that it will build “a world-famous national auto brand” and “the world’s largest and strongest new energy auto group”, and giving the actual KPI – 2025 Annual production and sales of more than 1 million vehicles have been realized.
So, what is the concept of this goal?
On November 2, 2020, the general office of the State Council issued the new energy vehicle industry development plan (2021-2035), which states: “by 2025, China’s new energy vehicle market competitiveness will be significantly enhanced The sales volume of new energy vehicles has reached about 20% of the total sales volume of new vehicles…. ” In the previous version of the Ministry of industry and information technology in 2019, the proportion was 25%. Obviously, 20% would be a more accurate figure.
According to the latest data of China Automobile Industry Association, in 2020, China’s automobile production and sales will reach 25.525 million and 25.311 million respectively, with a year-on-year decrease of 2% and 1.9%. If the sales volume of new cars in 2025 is 26 million, 20% will be 5.2 million. In 2020, China’s total sales volume of new energy vehicles will only be 1.367 million. If the annual sales volume of new energy vehicles is 5.2 million in 2025, the annual production and sales volume of the industry will increase The average growth rate will be more than 30.6% (the production and sales of China’s new energy vehicle industry will increase by 7.5% and 10.9% respectively in 2020), which is not an easy target for the new energy vehicle industry.
You know, Evergrande wants to grow out of nothing and achieve an annual sales volume of 1 million. So far, the most reliable way to achieve this goal is to acquire all the possible companies such as BYD, Weilai, Xiaopeng and ideal, just like GM merged the sales volume of SAIC and GM Wuling into its own sales volume, so as to achieve 1 million sales volume, which is just not in line with boss Xu’s “buy” strategy And he. As for the annual production and sales target of more than 5 million vehicles in 2035, I can only say that the national planning is not so far and detailed. Evergrande really dares to think about it.
However, it is also an advantage to be able to afford with abundant funds. At present, Evergrande automobile has invested 47.4 billion yuan in the new energy automobile industry, covering the fields of vehicle manufacturing, electric motor control, power battery, automobile sales, intelligent charging, shared travel, etc., and has also reached cooperation with Tencent, didi and other giants.
At present, the latest development of Hengda’s mass production of new energy vehicles is that hengchi 1 has completed the winter test and disclosed the interior decoration. Until it is on sale and on the road, we don’t know what the real quality of hengchi is. Maybe it’s a surprise or a panic. However, the market still gives affirmation and expectation to Evergrande automobile. On January 25, 2021, Evergrande automobile signed subscription agreements with six investors with a total amount of HK $26 billion. As of March 26, it has received HK $21 billion and has issued / will issue new shares to investors.
Less than a year after the announcement, the stock price of Evergrande auto has soared from about HK $5 to more than HK $70, breaking through the market value of 500 billion, becoming the second largest auto company in China. After the release of the latest financial report, Evergrande motor rose 7.52% to HK $60.8. Perhaps only one flaw left in such a fantastic performance is the real car. Read more: Evergrande Auto’s intraday decline expanded by more than 13%. Read the title of the soft article to see how prosperous new energy vehicles are. Ten pictures to see through demand gen, the three major real estate companies of rongchuang China, Vanke and Evergrande : manufacturers expand digital conversion to sales and marketing reports, Lepu medical new coronavirus antibody colloidal gold detection kit, infrared thermometer and other products have been supplied to dozens of countries CCFA: Top 100 supermarkets in China in 2019, Zhongchuan and Sina jointly release “China’s intelligent media development report” to show 2021 China’s intelligent media change trend, Amazon cloud technology releases China’s business strategy Zhang Wenyi announced that the troika will accelerate the global business expansion of customers, and awe will present the first epland juui social system for Ott system, which won the intelligent technology award. Yichaton technology will establish a joint venture with Volvo cars in Gothenburg to jointly develop a new generation of vehicle intelligent operation system applicable to the world. Meituan will lose 10.9 billion yuan in new business and other divisions in 2020 62.7% of Xinchuang leaders gathered in cite to seek a new pattern of independent ecology. Here comes the latest panorama of China’s network security industry! J.D. Power jundi: 2021 China’s new car purchase intention research SM (NVIS) after 95 tend to buy independent brands and new energy vehicles the highest proportion FCA: young investors buy cryptocurrency mainly to “stimulate” Tencent Financial Report: Q4 net profit in 2020 59.3 billion yuan, an increase of 175% year on year, annual net profit 159.85 billion yuan
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