Evergrande Group extends losses
The Corona crisis is not without consequences for the Evergrande Group. The real estate giant anticipates an increase in losses and issues a profit warning. In view of an ongoing need to invest in electric car expansion, this is a worrying development. And there are details about Evergrande's first electric car.
The corona crisis is also a real estate crisis. Curfews reduced Chinese interest in condominiums to near zero, and companies moved online. Above all the Evergrande Group, which offered real estate at a discount of 25%. The group reported brisk demand, but analysts question how high the completion rate was in reality.
Profit warning for upcoming investments
On March 22, the Evergrande Group issued a profit warning after losses quadrupled. The company's share then fell to its lowest level since June 2018 and has since recovered only slightly. A loss of the equivalent of € 640 million is expected for the current year.
In the background are the continued high investments in the production of electric cars. In 2019, € 2.6 billion was made available, and almost € 2 billion were also firmly budgeted for the current year. Investments are expected to drop to € 2021 billion in 1.3. The Evergrande Group is sticking to its plans to present 15 new vehicles and to establish a production network of 10 plants worldwide. But the legitimate question arises as to how long you can hold out due to high liabilities and a troubled economy. Bonds maturing in summer and their refinancing will provide the answer.
In China, against the background of the Corona crisis and the open question of rapid global economic recovery, there are slight doubts about the plans. Yicai Global refers to failure to meet investment commitments Faraday Future. In April 2018, the Evergrande Group became the manufacturer's largest shareholder. Evergrande retired at the end of the year and brought the company into initial difficulties that resulted in a preliminary bankruptcy. In the meantime, Faraday Future is back and working with the FF 91 on a restart.
Evergrande's first electric car
Evergrande's first electric car will be presented in the first half of 2020. So far, information on this has not made it public. According to our information, a study should be shown at the canceled Geneva Motor Show. In contrast to other manufacturers, the presentation was not moved to the Internet. It is unclear when, where and whether the concept car that was not presented will be shown at all. But there are some pointers. It is said to be a medium-sized, all-electric SUV. Production will start in 2021, then maybe also in Sweden.
Evergrande will soon disappear again for another 4 years or earlier ... they have no idea how to build cars and NEVS was only around .. yes, why actually? Chinese planned economy cannot function in the social market economy - that is logical….
@ Tom,
also agrees again. Let's see what's coming ...
In any case, many thanks for all information and all the entertainment around the automotive history, present and possible future of Trollhättan and the calm, factual presentation.
´´Evergrande Group´´ Hope for ´´NEVS´´ & ´´Implementation of Saab genes´´ ??
´When you follow the reports here´ about EVERGRANDE´ the question is inevitable
?If this conglomeration of investors ´´ should be as potent ´ as always presented´… why has not a SINGLE prototype been presented to the public after 4-6 years´? ´I am talking about a PROTOTYPE ´ -Series model which dictates the direction´´! ´´ Since this was NOT the case´ ... and there is also NO announcement about this request´ one has to assume´ that this investor does NOT have the liquid funds available´ to really turn around in the long term to be initiated at NEVS! “To whom do disgraceful announcements bring something ´ if NOTHING happens afterwards´ and you as the end customer are no longer interested in such statements ´´! ´´ How should NEVS behave with this game´´ ?? … ´´NEVS´´ should terminate any business relationship with immediate effect´ and start looking for another investor´ so that a light appears on the horizon again as soon as possible´´ because without light on the horizon one can do the whole business too to adjust ! ´´ONE WITHOUT TERROR´´ - - OR - - ´´ONE WITHOUT TERROR´´ ??Please remain factual as before, that saves me the moderation. Thank you!
The facts: Evergrande has been a major shareholder in NEVS since January 2019, not for 4 - 6 years. The Evergrande Group's electric car activities have only been running for 18 months. So far, all promises have been kept, Koenigsegg and NEVS have received millions.
@ Tom,
fair enough and thanks for the AW. But what else should Evergrande be judged on when their own and voluntarily published PR material is so discrediting? ? ?
The time for evaluation will come. At the latest when the first own electric car is presented. Since Pininfarina is in charge of the pen, it could be exciting.
Thanks Tom.
The relationship to Saab is getting thinner and thinner, but the new network, how it expands and shrinks, is still exciting.
The image of the SUV is hugely irritating to me. That looks at most like a student work. I actually saw pictures like this of match box cars in questionable airbrush aesthetics from students in the 1990s (no joke) ...
If Evergrande, 30 years late, wants to realize the immature fantasies of school leavers and out of the burrow, then they really don't have much to offer.
Of course, the world continues to turn after 2011 and new stories are being written in Trollhättan.
The graphic of the SUV comes from an Evergrande website and is illustrated according to the local taste. You shouldn't overstate it.
Hello Tom !
Just a hint of a small technical problem:
The bar with the data protection notice always runs through the bottom of the picture and unfortunately cannot be deleted by clicking on “Close and accept” ...
Thank you
Stefan
Hello Stefan, thanks for the hint! Should work again now, you may have to clear the cache!