"Buy, buy and buy" for building cars! Evergrande's new energy vehicle business is expected to lose 3.2 billion in 2019

For Evergrande, its road to building cars has always been a "buy, buy, buy" strategy.

Yesterday evening, Evergrande Health (00708.HK) issued a profit warning announcement. It is expected that the net loss in 2019 will be 4.9 billion yuan, which is further expanded compared with the net loss of 1.4 billion yuan in 2018.

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Evergrande Health stated that the company's losses were mainly due to the expansion of the new energy vehicle business, which is still in the investment stage. The purchase of fixed assets and equipment, research and development related expenses and interest expenses increased.

Evergrande Health expects that the company will generate a net loss of 2 billion yuan in 2019 and a net loss of 3.2 billion yuan in new energy vehicle business. Its health management business is expected to have a net profit of approximately 300 million yuan in the same period.

Ever since entering the field of automobile manufacturing in 2018, Evergrande has continued to make great strides, including its investment in Guoneng, the establishment of a joint venture with Koenigsegg, land purchase, and investment in upstream and downstream companies.

Xu Jiayin used 15 words to summarize how Evergrande builds a car: "Buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy.

In October last year, Evergrande also established the Evergrande New Energy Vehicle Modeling Expert Committee. Xu Jiayin put forward “four requirements” for design masters:

First, it needs to be atmospheric, handsome, sharp, and aura;

Second, we must have a sense of modernity, technology, fashion, and art;

Third, be handsome, cool, dazzling, and pretty;

Fourth, the first beauty, the tail beauty, the body beauty, the top beauty;

All in all, to make the whole world shine, "Everyone sees everyone, 'wow'"!

Evergrande has publicly stated that it will become the world's largest and most powerful new energy vehicle group within 3-5 years, and will achieve an annual output of 5 million vehicles in the next 10-15 years.

In order to carry out this "play" to the end, Evergrande's investment in new energy vehicle business will continue.

It is reported that Evergrande's future product line will cover mid-range, mid-to-high-end, high-end, etc., involving various fields such as cars, SUVs, MPVs. The first car of its new energy vehicle brand, Hengchi, will be named Hengchi 1. The new car is planned to debut in the first half of 2020 and be mass-produced in 2021.