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China Evergrande EV Unit Posts $10 Billion Two-Year Loss

The struggling electric vehicle unit has been under pressure with its parent company trying to find a way out of a two-year debt crisis

Test cars by Evergrande are parked outside the Evergrande New Energy Vehicle (NEV)'s research center, in Shanghai, China October 6, 2021. Picture taken October 6, 2021. REUTERS/Yilei Sun/File photot
Test cars are parked outside the Evergrande New Energy Vehicle's research centre, in Shanghai, China in 2021. Photo: Reuters


China Evergrande’s New Energy Vehicle Group has revealed a combined net loss of 71.12 billion yuan ($9.95 billion) for 2021 and 2022 in long overdue financial reports published on Wednesday.

Evergrande NEV’s net loss was 56.27 billion yuan for 2021 and net loss from continuing operations was 14.85 billion yuan for 2022, compared with a net loss of 7.4 billion yuan in 2020 when its business was predominately health management.


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The company, which has been under pressure since its parent China Evergrande group got sucked into a debt crisis in mid-2021, had warned it might have to wind up operations unless it obtained new funding.

Last year, the firm had to delay mass production of its first flagship model, the Hengchi 5. Evergrande said last month it had delivered more than 1,000 cars as of end May.


  • Reuters with additional editing by Sean O’Meara


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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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