Late night warning! Evergrande Automobile Co., Ltd. will stop production, seek financing of 29 billion yuan, and consider disposing of houses.

? At present, over 900 vehicles have been delivered.

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Author | Wang Leyan Cao Tingting

Finally came out!

Evergrande announced the debt restructuring plan and also disclosed the latest progress in building cars.

Late last night, Evergrande exposed all its assets, including foreign debts and the progress of various projects. The good news is that the net foreign debt is expected to be restructured, but the automobile business still faces the risk of production suspension.

At present, Evergrande Automobile Group has delivered more than 900 "Hengchi 5" cars, but if it can't get new working capital, the Group will have the risk of stopping production.

Source: Evergrande

If we can get 29 billion financing, we plan to launch a number of flagship models, hoping to achieve mass production.

Under this plan, the accumulated leveraged cash flow from 2023 to 2026 is expected to reach-7 billion yuan to-5 billion yuan.

As far as asset planning is concerned, the Group is considering selling residential and property development projects.

At present, the debt situation of Evergrande is that by the end of 2022, the total debt will be 753.7 billion, and in the next three years, Evergrande will need to borrow another 300 billion to operate normally.

0 1?

Seek financing to move on.

The latest announcement mainly includes the following information points:

First, Evergrande disclosed its overseas debt restructuring plan. It shows that the company has made progress in dealing with the debt crisis. On the whole, Evergrande will issue new bonds to replace the original bonds. The term of the new bond is 4 to 12 years, and the annual interest rate is 2% to 7.5%; No interest is paid in the first three years, and interest is paid at the beginning of the fourth year, paying 0.5% of the principal.

Source: Evergrande

Evergrande said that the signing of the main terms of this overseas debt restructuring means that the restructuring will be successful soon. However, this is still a hypothesis. Assuming that the reorganization is successful, the risk of liquidation ordered by the Hong Kong court will be lifted.

Second, Evergrande's new energy vehicles are currently seeking financing. If the Group cannot obtain new working capital, there will be the risk of production suspension. However, if the Group can seek financing of more than RMB 29 billion in the future, it plans to launch a variety of models to achieve mass production.

In other words, Hengchi can't operate without money.

The third is the planning for the future. In the next three years, the core task of the company will still be to ensure the delivery of the building, prepare for the resumption of work and production, and strive to resume normal and orderly operation, but it is estimated that it will need financing of 250 billion yuan to 300 billion yuan.

Source: Evergrande

Everything in the announcement says one thing. As long as the capital is obtained, the work of Evergrande Group is expected to return to normal level at present.

Evergrande is also well aware of its own situation, stressing that these all depend on many assumptions and preconditions, and there are many uncertainties, so the company cannot guarantee to operate according to the above forecast.

In the announcement, Evergrande also announced its sales in the past two years. In 20021year, the contracted sales of China Evergrande reached 443 billion yuan, and the contracted sales floor area was about 54.3 million square meters. In 2022, China Evergrande achieved contract sales of about 365.438+0.7 billion yuan, with contract sales floor area of about 3.904 million square meters.

Source: Evergrande

Evergrande said that it will deliver about 30 1 1,000 houses in 2022. By February 2023, China Evergrande had delivered 42 1 0,000 sets with a construction area of 48.82 million square meters, involving 5 15 projects.

In the first two months of this year, Evergrande has achieved contracted sales of about 6.57 billion yuan, and the contracted sales floor area is about 9 1. 1.00 million square meters.

At present, the biggest problem is insufficient liquidity. Evergrande said that it has cut costs in the field of new energy vehicles. For example, the number of employees in the new energy automobile factory has decreased from 3,742 in the middle of last year to 2,795 now.

However, Evergrande Automobile is also actively helping itself, that is, selling residential and property development projects, and then obtaining enough funds to meet the mass production demand of automobiles.

On March 2, last year, the stock of China Evergrande was suspended, and a week later, the stock of Evergrande Automobile was suspended. Up to now, Evergrande and China Evergrande have not resumed trading.

Finally, Evergrande said that the conditions for resumption of trading were not met, so the three listed companies of Evergrande continued to suspend trading.

At the same time, most domestic creditors also took legal measures against Evergrande. As of yesterday, there were more than 789 pending litigation cases, with a bid amount of over 6,543.8 billion yuan, a total bid amount of about 33,654.38 billion yuan, and more than 43 pending arbitration cases with a total bid amount of about 32.2 billion yuan.

02

? Recent situation of Evergrande automobile

At present, Evergrande has total assets of 59.5265438 billion yuan and total liabilities of 58.83 billion yuan.

Judging from the announcement, it is revealed that Evergrande is under great pressure. In fact, for Evergrande now, it is not just a problem of lack of money.

Evergrande needs some business to open a breakthrough, and it can rob Peter to pay Paul, so what Evergrande wants to see most now is "new liquidity". The same is true of Evergrande, but it is difficult not to buy it in the market.

Source: Evergrande

Due to the tight liquidity, in order to maintain basic business operations, Evergrande New Energy Vehicle has taken cost-cutting measures, such as reducing the number of employees.

Hengchi 5, the only mass-produced car of Evergrande, was officially mass-produced on September 6, 2022, but only 900 new cars were delivered by the announcement date, which was less than 1000. This is somewhat bleak compared with the frequent monthly sales of more than 10,000 yuan by the new forces.

Source: Evergrande

Once upon a time, Evergrande was ambitious, claiming to invest more than 300 billion yuan. At that time, the financing of 29 billion yuan was Mao Mao rain for Evergrande. Judging from the announcement, Evergrande is now looking for 29 billion financing, which smacks of begging.

Moreover, overseas companies are also having a hard time. Evergrande Motor also mentioned its Swedish subsidiary, National Electric Vehicle Sweden AB, in its announcement late last night.

Not good news, but layoffs. The reason given is to concentrate financial resources to support the mass production of Hengchi 5, save costs and improve management efficiency.

In fact, NEVS has officially announced layoffs some time ago. As part of reducing costs and avoiding bankruptcy, the Swedish Global Electric Vehicle Company (NEVS) announced the launch of the "Hibernation Plan".

Source: NEVS

According to the plan, the company plans to lay off 320 people, accounting for nearly 95% of the total number of employees. If the plan is fully implemented, NEVS will have only 20 employees left.

Moreover, this is not the first time that NEVS has laid off employees on a large scale. After the explosion of 202 1 Evergrande, NEVS issued a notice of layoffs to about 650 employees, nearly half of whom will be dismissed.

Stefan Tilk, then CEO, also said, "If NEVS can survive the crisis, it may hire employees again to cooperate with Evergrande's plan to expand its business in Europe."

NEVS said that the company was very helpless to enter the "hibernation plan". "This means that we will be forced to reduce all costs and suffer layoffs in all areas of the company. We are communicating and negotiating with the corresponding trade unions to provide support and legal advice for all our employees. This process will be carried out in the next six months. "

Source: NEVS

Although it is a measure to avoid bankruptcy, for a company whose business involves tram manufacturing, motor control, intelligent charging, travel enjoyment and other fields, 20 people are basically the same as bankruptcy.

This also means that if NEVS has no new investors or is sold in the future, the company may face bankruptcy.

NEVS Company is one of the companies acquired by Evergrande during its overseas "buy-in-buy" strategy, and is currently a wholly-owned subsidiary of Evergrande.

Source: NEVS

The dispute between Evergrande and NEVS began at the end of 20 18. At that time, there were differences between Evergrande and Faraday in the future. After three months of litigation, Evergrande Health (the predecessor of Evergrande) began to contact NEVS.

20 19 In June, Evergrande Health announced that it had acquired MiniMinor Limited for $930 million, and acquired a +0% stake in NEVS 5 1%. In June of the same year, Evergrande continued to subscribe for NEVS shares through MiniMinor, and its shareholding in NEVS increased to 82.4%. One year later, Evergrande spent $379.5 million to acquire the remaining 65,438+07.6% shares.

Since then, NEVS has become a wholly-owned subsidiary of MiniMinor, and Evergrande Automobile has a controlling stake in NEVS 100%. The mass production of Hengchi 5 is closely related to NEVS, which has solved the most troublesome production qualification problem for Evergrande.

2017,65438+10, NEVS successfully obtained the ninth domestic pure electric passenger car production qualification through its subsidiary Guoneng New Energy Automobile Co., Ltd., and Evergrande Automobile will produce Hengchi 5 through this qualification in the future.

Source: Evergrande

According to the memorandum, Evergrande is providing "new business direction" for new energy vehicles, but it does not mention what the new business will include.

NEVS is just one of Evergrande's layouts in the automobile industry. In addition to new energy vehicles, Evergrande also owns or holds a number of automobile supply chain companies, including Protean, a British hub motor company, e-Traction, a Dutch electric vehicle transmission system company, and Hofer, a German powertrain system company.

With Evergrande losing its former elegance, these companies are likely to face the same experience as new energy vehicles.

This article comes from the author's Che Yi No.2 Super Electric Laboratory, and the copyright belongs to the author. Please contact the author in any form. The content only represents the author's point of view and has nothing to do with the car reform.