When China's new energy vehicles go fast enough, they must also go steady enough to go far enough.

　　The 20th Shanghai International Auto Show in 2023 was an unprecedented event, and foreign car executives came to the booths of China's independent brands and new car manufacturers, looking curiously at the new energy vehicles equipped with intelligent cabins. It seems difficult to believe that it is these vehicles that have ensured that China's sales of new energy vehicles have ranked first in the world for many consecutive years.

　　However, those who sink in the sand are the gold, those who win in the wind and rain are the king. There are many spirited new energy vehicle brands on the booth, and there are also many emerging car companies under the booth who try to enter the new energy vehicle market but fail miserably, such as Evergrande Motors, which once snorted nine models at an auto show.

　　Recently, Evergrande Group announced that after delivering 900 units of the Hengchi 5, its factory in Tianjin will temporarily suspend production of the Hengchi 5 due to insufficient funds.

　　In fact, not long before this, Evergrande Motors had already suspended the operation of other factories and concentrated resources on production at the Tianjin factory. The suspension of the latter also means that as a life-saving straw for Evergrande Motors, the Hengchi 5 will be completely discontinued.

　　Although Evergrande Automobile added at the end of the announcement that "the factory plans to resume production in May 2023", this verbal commitment appears particularly weak and unconvincing in the face of Evergrande Automobile selling itself for 2 yuan.

　　Grass snake grey line, with a thousand miles of hidden pulse, Evergrande Automobile has actually taken this step with traces to follow.

　　The story also begins with Evergrande's announcement of the establishment of Evergrande Auto in 2017, when Hui Ka Yan had unlimited scenery and shouted the slogan of "Buy, Buy, Join, Circle, Big, Good". The entire auto market is looking forward to Evergrande's participation to lead the further development of China's new energy vehicles.

　　What kind of positive transformation is it

　　As is well known, Evergrande Group is a company mainly engaged in real estate, with a large business.

　　But since the country established three red line policies for the real estate industry and the subsequent patch policies, Evergrande Group has been unable to further expand its business model with high turnover and leverage, which means using borrowed money to turn into corporate and personal assets. So Evergrande must find a project that is comparable in size to the real estate industry to help the entire group transform, so Evergrande Motors emerged.

　　At the beginning of its establishment, Evergrande Group's rich resources and experience in the real estate field provided important support for the development of Evergrande Automobile. In 2019, Evergrande Automobile established the world's largest automobile factory - Evergrande Automobile Intelligent Manufacturing Base in Foshan, Guangdong Province, officially announcing its entry into the new energy vehicle market. For this reason, Evergrande Automobile has also purchased many automotive manufacturing technologies and established research and development centers worldwide, gathering a group of excellent automotive research and development talents, which makes Evergrande Automobile look promising.

　　However, public information shows that Evergrande Automobile was formerly known as Evergrande Health. Even though Evergrande Health later renamed itself as Evergrande Automobile, this company still needs to be responsible for promoting the research and development, production and sales of new energy vehicles, as well as industries such as elderly care and health preservation, which always gives people a feeling of being unique. However, with the endorsement of Evergrande Group, people still have high expectations for Evergrande Motors. Just a car manufacturing concept, Evergrande Motors has completed a 25-fold market capitalization, exceeding HKD 500 billion at one point. In contrast, Evergrande Group, as the parent company of Evergrande Motors, has an annual revenue of HKD 517.5 billion and a market capitalization of HKD 157.1 billion.

　　So, Evergrande Automobile successfully completed its first step of task.

　　Watching him rise to a high building

　　The 19th Shanghai Auto Show in 2021 was a shining moment for Evergrande Motors, and it also became the undisputed protagonist of the show.

　　At that time, Hengchi Automobile exhibited for the first time and launched a total of 9 vehicles, including Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5, Hengchi 6, Hengchi 7, Hengchi 8, and Hengchi 9. The models included sedans, SUVs, MPVs, covering all sub markets from A-class to D-class.

　　At that time, the scene was filled with loud gongs, drums, and firecrackers. Nine cars were fanned out on the exhibition stand, with a dense audience and media below. Long guns and short cannons were hitting various "clicks" of the Hengchi series. It is said that at that time, thousands of media outlets were visited, and the popularity was unparalleled. Hengchi Automobile President Liu Yongzhuo also stated at the meeting that in the fourth quarter of 2021, Hengchi Automobile will fully start trial production and achieve large-scale delivery in 2022. However, it was not until April 2022 that three Hengchi 5 real vehicles were born, and it was only six months later that the Hengchi 5 completed the delivery of 100 vehicles, which was a drop in the bucket for tens of thousands of orders.

　　In fact, at the auto show, when Hengchi Automobile did not allow everyone to watch it up close, the outcome can be foreseen now. The so-called nine Hengchi cars are just pure model cars without suspension or chassis. When people roast that the electric car is a big toy now, they must have never seen what a real big toy looks like, or the Hengchi model worth tens of millions on the Evergrande auto booth.

　　Seeing his building collapse

　　Not long after the 2021 Auto Show ended, Evergrande Group was thunderstruck. Two years later, in March of this year, Evergrande's restructuring plan was released, exposing a total of 753.7 billion yuan of domestic and foreign debt, while the available cash on its books was only over one billion yuan. This was like a bolt from the blue for Evergrande Motors, which needed a large amount of financial support.

　　According to the financial report released by Evergrande, as of 2020, the cumulative total investment of Evergrande in the new energy vehicle industry reached 47.4 billion yuan. Meanwhile, according to the annual report data of Evergrande Motors, from 2018 to 2020, Evergrande Motors suffered losses of 1.429 billion yuan, 4.426 billion yuan, and 7.394 billion yuan respectively, with a cumulative loss of 13.249 billion yuan over the three years.

　　As of December 31, 2021, Evergrande Automobile had total assets of RMB 59.521 billion and total liabilities of RMB 58.83 billion, with an asset liability ratio of 98.84%. At this moment, Evergrande Automobile could no longer stop braking on the downhill road. The promised large-scale delivery in 2022 was delayed after delivering 900 vehicles.

　　On the evening of April 24th this year, China Evergrande and Evergrande Motors issued a simultaneous announcement, announcing that Evergrande Motors would sell all shares of its 47 groups, including Health Management and New Energy Vehicles, to China Evergrande for an initial price of 2 yuan. Once the handover is completed, the company will no longer have any equity in the sale of the group, and at the same time, China Evergrande will also take over approximately RMB 24.789 billion in liabilities for these projects as the transaction price.

　　This is an internal transaction within the group, and neither party has any substantial returns. Evergrande itself is already heavily in debt, and buying Evergrande Motors for 2 yuan is just a way to restructure again, in an attempt to leverage over 24.7 billion yuan of debt. The notice from Evergrande Motors indicates that if equity financing exceeding RMB 29 billion can be found, the factory can resume production. But faced with such huge debts and the Hengchi 5, which could not be built even after producing only 900 vehicles, there are very few entrants.

　　After all, if one could invest now and enjoy the profits of Evergrande Motors in the future, this big cake can no longer deceive people like the PPT car manufacturing a few years ago.

　　Car making is not just a passing game

　　There are many car companies that have followed suit in the new energy vehicle market, and more have fallen. Many of them are just talking on paper about PPT car manufacturing. After buying technology, factories, PPT, and financing, they indefinitely procrastinate until they disappear in the flood of time.

　　In 2014, the American SALEEN supercar brand transformed into Jiangsu Sailin Motors under the management of Wang Xiaolin, and held a grand Sailin Night at the Bird's Nest, inviting many celebrities. The press conference alone cost almost 200 million yuan. However, only one two door, two seat micro electric vehicle was released on site, and after spending more than 6 billion yuan, only 31 were sold. The outcome of Sailin Motors was bankruptcy and bankruptcy, and CEO Wang Xiaolin fled to the United States.

　　As a new star of new energy vehicles in 2019, Weima Motors was once highly favored by capital, with a financing of up to 35 billion yuan. Moreover, Weima Motors is much more reliable than a group of PPT car manufacturers. In terms of sales, Weima Motors once surpassed Weixiaoli. However, in the subsequent issue of battery self ignition, Weima Motors remained passive until it was blacklisted at the 315 party, from prosperity to decline.

　　In addition to the aforementioned brands, new energy vehicle brands such as Hanteng, Ranger, Yundu, and Byton have all disappeared. It can be seen that car manufacturing is not just a passing game. If there is a lack of core technology, brand value, and most importantly, a reverence for car manufacturing, it is impossible for car companies to achieve success; If the original intention is to draw big cakes and make quick money, then it's better not to waste that money.

　　A car is a home built on four wheels, and when China's new energy vehicles go fast enough, they must also walk steadily enough to go far enough.