China Evergrande Group, the Chinese property giant which is also famous for its crossover car building moves, unveiled its NEV brand name on August 28 at the AFC Champions League quarter-final.
The eye-catching Chinese characters “henchi”— “Heng Chi” in Chinese pinyin—appearing on the red polo shirts of Guangzhou Evergrande's football players show the world Evergrande's ambition in NEV field. According to the property behemoth, “Heng Chi” stands for “Everlasting” and “to bloom worldwide”, embodying Evergrande's long-term determination to be the world's leading EV manufacturer.
This is an excellent chance to announce the new brand name before numerous spectators on spot and audiences in front of televisions. From the time being, the real estate developer has already pumped over RMB300 billion in the cash-burning business, of which RMB280 billion would be injected to two NEV manufacturing bases in Shenyang and Guangzhou.
Moreover, the group has formed a relatively complete industrial chain covering distribution channel, complete vehicle producer, charging infrastructure and several core auto parts by a series of acquisitions. All these moves definitely consume a huge amount of money as well.
Evergrande Health, a listed subsidiary of Evergrande Group and also the major entity that conducted acquisitions for the EV production, warned a net loss for the first half of 2019 of approximately RMB2 billion, versus the net profit of around RMB200 million for the same period in 2018, the subsidiary announced on August 9.
The company said that the possible net loss was primarily ascribed to the development of the new energy vehicle (NEV) business, which is still in early investment stage and resulted in an increase in R&D and other relevant costs and interest payments.
Its NEV business was expected to chalk up a net loss for the first half of 2019 of roughly RMB2 billion, while the group’s development of health management segment remained stable during the same period.
