In the past year, Evergrande has only invested more than 300 billion yuan in the accumulated vehicle business. This figure exceeds the current total financing scale of China’s new car companies by about 200 billion.
Editor’s note: This article is from WeChat public account “public reference” (ID: gongkaicankao ), author Zhang Hangying.
A well-known fact, making a car to burn money.
Tesla, which has achieved mass production, has not yet turned losses, not to mention the Evergrande, which has just crossed the real estate industry from real estate.
On August 9, Evergrande subsidiary Evergrande Health issued a profit warning. It is expected to lose 2 billion yuan in the first half of 2019. The reason is that the new energy vehicle business is in the early stage of investment, and the expenses such as research and development have increased.
The stock price fell immediately after the announcement. Today, the stock price is 7.44 Hong Kong dollars, down 3.38%. Compared with the peak of 17.46 yuan per share in the same period last year, it has fallen by more than half.
In the same period last year, Evergrande Health also earned 200 million yuan. However, due to the late entry into the field of manufacturing, the 2018 loss was 1.4 billion yuan. After splitting the health and automobile business, the actual loss of the car was more than 1.7 billion yuan.
Burning money, losses, disputes, the prospects of new energy vehicles are still confusing. Rao is so, why does Evergrande still insist on making cars?
The transformation of housing enterprises to build cars, the odds of geometry?
Hot 300 billion in a year
Hangzhou is not the first to build a car. Prior to this, Bao Neng, Hua Xia Happiness and other housing enterprises have precedents.
For example, Baoneng Group invested in a strategic investment of 663 million yuan at the end of 2017. Yao Zhenhua, chairman of Baoneng, also said that from 2018, he will invest 10 billion yuan each year for the research and development of new cars.
In the same period, Huaxia Happiness acquired nearly 53.4% of the shares of Hezhong New Energy for 330 million yuan.
After the development of the real estate industry into the “ceiling”, anxious housing companies have sought business transformation.
Why is the new energy automotive industry? The reason is very simple, other industries are not big.
At the 2018 performance conference, Xu Jiayin said that only the output value of the new energy automobile industry matches the goal of Evergrande.
He said, “In the diversified layout, Evergrande once chose to enter the industries of grain and oil, dairy, mineral water, etc., but after exploration, we found that these industries sell hundreds of millions of dollars a year, billions of industrial volume, this It does not match the size of Evergrande 600 billion.”
At that time, the new energy automobile industry is in the cultivation stage, and it can be said that it is in a super wind. The data shows that the sales of new energy vehicles in the 2018 market exceeded 1.25 million units, up 61.7% year-on-year. It is estimated that the sales of new energy vehicles in China will exceed 1.6 million in 2019.
In the next 5 to 10 years, the global new energy automobile industry will reach a scale of several trillion. The goal of Evergrande is to build five R&D and production bases in East China, West China, South China, North China and Central China in the next 10 years. The annual production capacity will reach 5 million units in 10 years. This figure is about five times the total sales of pure electric vehicles in the country in 2018.
In January of the 2019 year, Evergrande registered six auto companies, and later launched a number of auto sector acquisitions.
On January 15, Evergrande invested 930 million US dollars to acquire 51% of Swedish electric vehicle company NEVS, and obtained the R&D and manufacturing capabilities of the whole vehicle.
On January 24, 1.06 billion yuan won a 58% stake in the power battery company Cannes Energy, and obtained the top power battery technology.
On January 29, an investment of $150 million was invested in the Swedish super-running company Königsegger. The layout of the world’s top new energy vehicles.
On March 15, the company acquired 70% of Tete Mechanical & Electrical Co., Ltd. for 500 million yuan, while the latter holds the entire shareholding of Dutch e-Traction.
On May 30, the acquisition of Protean in the UK acquired the world-class automotive wheel hub motor technology.
In June, Evergrande invested 160 billion yuan and 120 billion yuan respectively to build a new energy vehicle R&D and production base in Guangzhou Nansha and Shenyang.
Since then, these layouts cover the complete layout of related facilities such as production, R&D, sales and after-sales, demonstrating the determination of Evergrande to bet on new energy vehicles.
In the past year, Evergrande has only invested more than 300 billion yuan in the accumulated automobile business. This figure exceeds the current scale of financing for new car companies in China.
A journey with Jia Yueting
Hengda is in the field of building carsThere was a layout, starting with the FF “marriage” with Jia Yueting last year.
Since June last year, Evergrande injected $800 million into FF and became the largest shareholder of FF. At that time, Evergrande had money, and FF had technology, which can be described as “the combination of heaven and earth.”
However, due to the conflict of control over FF, the cooperation quickly aborted.
On the last day of 2018, Evergrande Health and FF simultaneously announced a restructuring agreement. Among them, Evergrande Health holds 32% of FF preferred shares and 100% holds FF Hong Kong.
In fact, Hengda only got the benefits of a Nansha factory, but started the plan to build a car independently.
Because of the entanglement with FF, Evergrande started a big early in the field of building a car, and caught a late episode. Therefore, I had to rush to make progress when I started to build a car business independently.
Because of the loss of the gold lord, Jia Yueting finally went through the “Ninth City” of $600 million in capital injection after experiencing a series of wandering deeds selling land in March this year, and announced that it will produce and sell in China. And operating the V9 model electric car.
However, Jia Yueting’s first production car, the FF91, has not yet been produced from the PPT, and there are more than 100 days left in its claimed 2019 mass production.
The Evergrande’s first new energy vehicle, the National Energy 93 model, was launched in Tianjin in June this year.
Although this model has been completed by NEVS before the stationing of Evergrande, the downline of this model still wins confidence for Evergrande—has already possessed mass production of new energy vehicles. strength.
But due to the old design, backward product parameters, and the lack of price competitiveness, this model has not stirred up much in the market.
Of course, this is just the beginning. If you really fight in the market, Evergrande needs a real production car.
Lucky and unfortunate
The industry giant Tesla has lost 9 years since its listing. In the first half of this year, the net loss exceeded $1.1 billion, of which R&D expenditure was $980 million.
We are known as China’s “Tesla” Weilai Automobile, with a net loss of 9.639 billion yuan in 2018, a year-on-year increase of 92%.
In fact, the loss of Weilai Automobile has been expanding. According to the prospectus submitted by Weilai Automobile, the losses in 2016 and 2017 were 2.573 billion yuan and 5.021 billion yuan, plus a loss of 9.639 billion yuan in 2018 and a net loss of 2.6 billion yuan in the first quarter of 2019. Weilai Automobile in the past three years. The accumulated loss is close to 20 billion yuan.
The founder of Weilai Automobile Li Bin once said that if there is no 20 billion people do not want to build a car; Xiaopeng Automobile Chairman He Xiaopeng also sighed: 20 billion cars are not enough.
The loss has become the curse of new energy vehicles. This is still based on the previous large-scale government subsidies.
Since 2013, the Chinese government has subsidized large-scale new energy vehicles. Under the stimulus of the policy, the new energy car track is crowded. However, starting from 2018, the subsidy policy for new energy vehicles began to fall sharply. Since March 2019, the state subsidies for new energy vehicles have been further reduced, and local subsidies have all withdrawn after three months.
The wave of this new energy auto company is also officially entering the reshuffle moment.
For Evergrande, entering the car-making enterprises is relatively late, missed a wave of industry dividends, and lost the opportunity to occupy market share. However, Evergrande has more abundant financial guarantees than other new energy vehicle companies, so that it can persist in the car industry.
Throughout the domestically produced vehicle power, more than 10 brands have formed a common competitive landscape. At the end of this year, no less than 16 new energy vehicles will be delivered. And the price is widely distributed, covering the needs of most consumers.
In addition, Tesla’s Shanghai plant will be put into production at the end of the year, and competition in the field of new energy vehicles in China will become more intense. The spontaneous combustion and recall incidents of new energy vehicles have also cast a shadow over their roads.
Funding is a major life-building business, but beyond that, deep technical accumulation and good brand reputation are also important. Even if Evergrande is “rich and rich”, it is still unknown whether it can occupy a seat in this long-lasting car-making card battle.