The Mystery Of Evergrande'S 60 Billion Capital: To Test The Technical Success In Mass Production

Evergrande, which quickly cut into the new energy vehicle industry by means of large-scale acquisition, has proved to the market that "buy, buy, buy" is not the most expensive time in the business of car manufacturing.

On the evening of August 27, pan Darong, chief financial officer of Hengda New Energy Automobile Group Co., Ltd. (00708. HK, hereinafter referred to as "Evergrande motor") disclosed at the company's mid-term performance conference that the company expected to invest about 60.7 billion yuan in the auto industry this year, which is significantly more than the total investment in the past acquisition projects. In comparison, the total amount of Evergrande health has been bought continuously last year The investment is only 14.9 billion yuan.

Behind the huge capital demand, Evergrande automobile has entered the final sprint stage of car manufacturing. According to the plan, Evergrande will start mass production at the end of 2021. According to the latest statement of the company's top management, Hengda's brand hengchi will be trial produced in the first half of next year and mass production in the second half of next year.

In addition to Evergrande's entry into the Bureau, the new energy vehicle market has also changed. On the one hand, new and old automobile manufacturing forces such as Weilai and Volkswagen began to enter the market on a large scale; on the other hand, the sales volume of new energy vehicles also showed a correction due to the epidemic situation and other factors. According to the data released by China Automobile Industry Association, the sales volume of new energy vehicles from January to July this year was 486000, a year-on-year decrease of 32.8%, of which the sales of pure electric vehicles decreased by 34.3%.

Back feeding of health sector

Even for Evergrande, which has a lot of money, 60 billion yuan is not a small amount. Previously, Evergrande's large-scale mergers and acquisitions in the upstream and downstream of the new energy automobile industry has been called "huge investment", but the scale is less than 60 billion.

According to the previous statistics of the 21st century economic report, Evergrande automobile spent more than 10 billion yuan on enterprise merger and acquisition in 2019. If the previous investment is added, the total scale will exceed 30 billion yuan. In the first half of last year, the total outflow of cash from the auto industry amounted to 14.9 billion yuan.

However, it should be pointed out that this year's source of funds is different from that of previous years. In previous years, the group's investment was mainly used. Since this year, the company's sales revenue and financing income are planned to be invested in succession.

In the first half of this year, the group's investment income decreased to RMB 9.9 billion, while the group's investment income decreased to RMB 9.9 billion in the first half of this year.

According to the financial department's forecast, the investment in the automotive sector will continue to increase in the second half of this year, with an estimated investment of 41.3 billion yuan, including 2.7 billion yuan invested by the group. The sales revenue and financing income are expected to contribute 13 billion yuan and 19.9 billion yuan respectively.

However, whether the sales revenue can really be a blood transfusion for the development of the automobile industry is still questionable. According to the latest semi annual report, although the total turnover of the company in the first half of the year has increased by 70%, the scale is only 4.51 billion yuan, which is not a small distance from the sales revenue of 9 billion yuan.

At the same time, if the sales revenue is used to nurture new energy vehicles, it means that the health business of Evergrande automobile will provide support for the automobile sector to a certain extent. Before the large-scale production of new cars, the health sector will be the main revenue source of Evergrande. According to the semi annual report, of the total revenue of 4.51 billion yuan, the health management income was 4.457 billion yuan, an increase of 88.6%, while the revenue of new energy vehicle business was only 53 million yuan, a decrease of 81.4% year-on-year.

At present, the new energy vehicle business of Evergrande automobile mainly comes from the sales of lithium batteries, technical services and automobile construction and sales. Among them, the sales of lithium batteries decreased significantly in the first half of this year from 253 million yuan in the same period of last year to 26.607 million yuan this year.

On August 27, a company insider told the 21st century economic report that although the listed company changed its name from Evergrande health to Evergrande automobile, it does not mean that the company will give up its health business. Shi Shouming, chairman of Evergrande Automobile Co., Ltd., also introduced part of the plan of health industry. In the first half of this year, the revenue of Hengda · health valley was 4.45 billion yuan, which contributed most of the company's revenue. In the next three years, it plans to arrange more than 70.

From the performance point of view, the current stage of health industry is the company's "cash cow", and new energy vehicles are the "loss making business" to be filled. According to the report, the company lost 2.46 billion yuan in the first half of the year, an increase of 23.8% compared with the same period last year, mainly due to "the expansion of business scale of new energy vehicle division, and the increase of administrative expenses and interest expenses".

A key year for mass production

The industry's expectation for Evergrande to achieve mass production as planned is not high. Some automobile sales people who have worked for many years said that from the six new cars released before, hengchi is difficult to mass produce in a short period of time. "I didn't see the details such as the interior upholstery. I feel that they haven't decided on the interior yet, and the production time will not be particularly optimistic." He said.

Not long ago, hengchi released six new cars at one time, which not only included cars, SUVs, MPV and other commonly used passenger cars, but also covered all levels from a to D, showing Evergrande's "ambition" in the field of new energy vehicles. However, the six new cars only announced the styling, without involving details such as interior decoration and performance parameters. The above-mentioned people believe that these cars "are unlikely to have any (mass production) news for at least half a year.".

There are not a few such voices. Evergrande has recently released a lot of progress information to show the orderly progress of mass production. At the mid-term performance meeting held on August 27, senior executives of Evergrande also outlined the map of mass production of cars - the research and development, construction and sales involved may become the destination of a huge amount of 60 billion yuan.

In addition to the six models previously released, it is said that Evergrande's production bases in Shanghai and Guangzhou have been completed and have entered the stage of equipment installation and commissioning. It is expected that production conditions will be met in September. The first planned production capacity of the two factories is 200000 vehicles.

In addition, Evergrande also has layout in terms of sales network and charging infrastructure. According to Liu yongzhuo, President of Evergrande automobile, after taking a stake in Guanghui group, the company is now speeding up the preparation of three major centers for hengchi automobile display experience, sales and maintenance and after-sales service, including 36 hengchi exhibition and experience centers, 1600 hengchi sales centers, and 3000 self-employed and authorized maintenance and warranty after-sales service centers. He did not give a detailed introduction to hengchi's future sales model, specifically whether it is self operated or authorized to dealers, but from his description, it is not difficult to find that there will be at least some self operated channels or outlets.

In terms of charging infrastructure, at present, Evergrande has established a joint venture with state grid of China, "State Grid Evergrande", focusing on intelligent charging services for parking spaces in parking lots.

In fact, Evergrande, with real estate development and operation background, has certain advantages in entering the automobile market. In addition to "not short of money", the above-mentioned senior automobile sales personnel believe that it has mastered a large number of consumer resources and charging infrastructure resources. "In the process of promoting the infrastructure construction of electric vehicles, Evergrande can effectively transform owners into consumers through various policies through charging discount or even convenient installation of piles."

However, he also said that this is only from the perspective of mode analysis. The key to the success of Evergrande's car making depends on its own business promotion.