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.

Evergrande's first electric car is said to be an SUV
Evergrande's first electric car is said to be an SUV

The corona crisis is also a real estate crisis. The curfews reduced Chinese interest in condominiums to almost zero, and companies moved their activities 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. A total of € 2019 billion was made available in 2.6, and almost € 2 billion was also planned for the current year. Investments are expected to drop to € 2021 billion in 1.3. The Evergrande Group continues to stick to its plans to present 15 new vehicles and to establish a production network of 10 plants worldwide. But the legitimate question is how long you will be able to 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 is slated to launch in the first half of 2020. So far, information on this has not been made 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 is not presented is shown at all. But there are some clues. It is said to be a medium-sized, purely electric SUV. Production will start in 2021, perhaps also in Sweden.

11 thoughts too "Evergrande Group extends losses"

  • Hello Tom !
    Just a hint of a small technical problem:
    The bar with the data protection notice always runs through the image below and unfortunately cannot be deleted by clicking "Close and accept" ...

    Thank you
    Stefan

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    • Hello Stefan, thanks for the hint! Should work again now, you may have to clear the cache!

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  • Thanks Tom.

    The relationship to Saab is getting thinner and thinner, but the new network, how it expands and shrinks, is still exciting.

    For me, the picture of the SUV is massively irritating. It looks like a student job at most. I actually saw such pictures of match box cars in questionable air-brush aesthetics by students back 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.

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    • 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.

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  • @ 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? ? ?

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    • 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.

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  • ´´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 depicted´ ... why after 4 to 6 years´you still have NOT a ONE prototype presented to the public´? ´I am talking about a PROTOTYPE´ so a preamble -Series model which gives the direction´´! ´´Because this was NOT the case´ ... and there is NO announcement about this request´ you have to assume that this investor does NOT have the liquid funds´ to really turn around in the long run to initiate at NEVS´´! "Whom do bad announcements bring something 'if Nothing happens afterwards' and you as the end customer are NO longer interested in such statements'"! ´´How should NEVS behave in this game´´ ?? … ´´NEVS´´ should end any business relationship immediately´ and start looking for another investor´ so that as soon as possible a light will come up again on the horizon ´because without light on the horizon you can do the whole business to adjust ! ´´A FRING WITHOUT END´´´ - - OR - - ´´A END WITHOUT END´´ ??

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    • 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 commitments have been kept, Koenigsegg and NEVS have received millions.

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  • @ 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.

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  • Pingback:

  • Evergrande will surely disappear again soon, about 4 years or earlier ... they have no idea how to build cars and NEVS was only around .. yes, why actually? Chinese planned economy cannot work in the social market economy - that is logical….

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