Having cash of 220 million yuan, Evergrande Automobile: Accumulated loss of 98.9 billion yuan by the end of 2022 Bank | Group | Automobile
On the evening of July 26th, Evergrande Automobile disclosed its 2021, 2022 semi annual reports, and 2022 annual reports.
According to the latest 2022 annual report data, as of the end of 2022, Evergrande Automobile's revenue was approximately 134 million yuan, a year-on-year increase of 78.71%; The gross loss was 93.85 million yuan, and a loss of 27.664 billion yuan was generated in 2022.
As of the end of 2022, Evergrande Automobile had a cumulative loss of 98.906 billion yuan, with the company's owner losing approximately 68.651 billion yuan. The company held approximately 220 million yuan in cash and cash equivalents, compared to 2.453 billion yuan in 2021, with total assets of approximately 115.221 billion yuan.
As of the end of 2022, Evergrande Automobile's total liabilities were approximately RMB 183.872 billion, with a debt scale of RMB 180.5 billion after deducting advance receipts of RMB 3.313 billion. This is an increase of RMB 62.899 billion compared to the debt scale of RMB 117.6 billion after deducting advance receipts in 2021.
As of the end of 2022, Evergrande Automobile has accumulated approximately 11.626 billion yuan in outstanding debts and approximately 18.512 billion yuan in overdue commercial bills of the group.
Evergrande Auto stated that the group will need to obtain a significant amount of funds in the foreseeable future to provide funding for this financial responsibility and capital expenditure under various contracts and other arrangements. In view of this situation, the directors have carefully considered the future liquidity and performance of the group, as well as its available financing sources, when evaluating whether the group has sufficient financial resources to continue operating. The group has taken several plans and measures to alleviate liquidity pressure and improve its financial situation, including but not limited to the following:
The group continues to take proactive plans and measures to control operating and administrative costs through different channels, including but not limited to optimizing and adjusting production and human resources, reorganizing structures according to various divisions, and maintaining close communication with suppliers, customers, and banks. The group promises to attract new customers and explore overseas markets to support the sustainable development of the group's main business and control capital expenditures.
The group is still actively negotiating with banks, other financial institutions, third parties, and related parties to renew existing loans and corporate bonds that will mature within twelve months after December 31, 2022, and to raise short-term or long-term financing from the group so that the group can fulfill all financial responsibilities when they mature within the next twelve months after December 31, 2022.
Evergrande Automobile emphasizes that, however, there is still significant uncertainty regarding whether the company's management can implement the above plans and measures. Whether the group can continue to operate will depend on its ability to generate sufficient financing and operating cash flow through the successful execution and completion of business and operational restructuring plans; Successfully execute and complete the financing plan; And successfully generate operating cash flow and obtain additional financing sources to fulfill its existing financial responsibilities, commitments, and future operating and capital expenses, as well as maintain sufficient cash flow for the group's operations.
It should be noted that in the 2022 annual report of Evergrande Automobile, the company's auditor has issued an audit report on the financial statements. In the audit report, the independent auditor stated that they do not express an opinion.
The basis for not expressing an opinion is that there are significant uncertainties related to the continuous operation of Evergrande Automobile and insufficient appropriate audit vouchers for the opening balance and comparative information.
As of the end of 2022, Evergrande Automobile stated that it had made breakthrough progress in its automotive sales. The group has started pre-sales of Hengchi 5, with over 320 units delivered within the reporting period. The group has applied for a total of 3512 patents in similar research fields worldwide, of which 2632 have been granted patent authorizations. The group is also building exhibition and experience centers, sales centers, and after-sales service centers in cities such as Beijing, Shanghai, Guangzhou, and Tianjin to build a strong online and offline transaction loop. The main functions of these centers include promoting the group's brand, vehicle sales, and user experience, as well as providing maintenance, warranty, and after-sales services such as vehicle delivery, machine repair, and sheet metal painting.
In addition, both the Shanghai and Guangzhou manufacturing bases have developed equipment management plans based on the shutdown management system. Each workshop's equipment is started up once a quarter for dynamic testing and equipment maintenance. In the field of power batteries, according to the group's financial situation, during the reporting period, the group focused more on the whole vehicle field, and investment in research and development and base construction of power batteries gradually slowed down.
In addition to selling cars, Evergrande Automobile has also carried out sales of some residential properties, which will gradually cease operations. The company will continue to gradually launch the health management service industry.
Evergrande Automobile stated in its outlook for the future that the group will fully guarantee the continuous and stable production and delivery of the Hengchi 5, and will gradually launch other competitive new models that meet market demand. The group believes that the new energy vehicle industry is actively developing.
