There is a super factory in Jinhua, Zhejiang, backed by a 41 year old Chinese and a Middle Eastern tycoon with $500 million in investment in Evergrande Auto Company | New Energy | Automobile

Evergrande Automobile, which has suffered a huge loss of over 90 billion yuan in three years and total liabilities exceeding 180 billion yuan, rose 47% from its highest point in early trading this morning. Originally, a Middle Eastern tycoon invested 500 million US dollars to acquire a 27.5% stake in Evergrande Auto, saving Mr. Xu's car making dream?

On the evening of August 14th, Evergrande Automobile announced that it had received the first strategic investment of $500 million from Newton Group, a US listed company held by the UAE National Sovereign Fund, and an additional 600 million RMB of transitional funds will be received gradually within 5 working days after the announcement. All investment funds will be used for the Tianjin factory of Evergrande Automobile to ensure the normal production of Hengchi 5 and the gradual mass production of Hengchi 6 and 7.

In addition, Newton Group will also assist Evergrande Automobile in expanding its overseas markets, with a small goal of exporting 30000 to 50000 Evergrande cars annually to the Middle East market in the future.

Evergrande Automobile is no longer a wholly-owned subsidiary of Evergrande

China Evergrande officially stated that this collaboration with Middle Eastern Capital will effectively solve the financial difficulties faced by Evergrande's automotive development.

It is worth mentioning that at the time of introducing Zhantou, Evergrande and Xu Jiayin had already signed a voting rights restriction agreement with Newton Group, and the three parties had been identified as concerted actors.

China Evergrande stated that assuming the completion of the new energy vehicle debt to equity conversion and the subsequent subscription of new energy vehicle shares, the Group's shareholding in Evergrande New Energy Vehicles will be diluted to approximately 46.86%, and Evergrande New Energy Vehicles will no longer be a wholly-owned subsidiary of the Company, and its financial performance will no longer be comprehensively recorded in the Group's performance.

If the implementation of mandatory exchangeable bonds is completed in the future, Evergrande's shareholding ratio will be further reduced to 21.75%. Newton Group will become the single largest shareholder of Evergrande Automobile and the largest shareholder of the United Action Group, leading to significant changes in the balance of the United Action Group.

Industry analysts believe that after completing the divestment of the real estate business, Evergrande Automobile has become a pure new energy vehicle enterprise. Newton Group has injected $500 million into Evergrande Automobile for the first time, and it is believed that more funds will be injected in the future.

And in the future, a large part of Evergrande Auto will be sold to the Middle East. Xu Jiayin may have opened up his mind, "Why do so many parts of the world have to sell in China?" Perhaps we can see that when Geely acquired Volvo, Volvo also suffered losses, but later achieved a reversal in the Chinese market. A Japanese car company on the brink of bankruptcy received investment from Chinese tycoons and revitalized the Japanese car, exporting it to China. There may be a vast market for new energy vehicles in the Middle East, and Chinese brands can turn losses into profits and export to foreign countries.

Behind the Newton Group are Chinese people

Dare to invest in Evergrande Motors at this time? What exactly is the origin of this "charcoal delivery" Newton Group?

Public information shows that Newton Group is a smart electric vehicle and sustainable energy promotion and application company headquartered in Dubai, United Arab Emirates, with investors including the Crown Prince of the UAE. It is the first manufacturer in Abu Dhabi to obtain a new energy vehicle production license and the only electric vehicle company in the UAE listed in the United States.

In fact, Newton Group has a deep connection with China.

Newton's history can be traced back to 2014, with its predecessor being Aikonik, an electric vehicle company based in Tianjin, China. It was co founded by President Wu Nan and W MOTORS founder Ralph Debbas.

Starting in 2016, it entered the public eye and reached strategic partnerships with several well-known companies such as W MOTORS, Studiotorino, Magna, Steyr, and Microsoft over the next five years.

In July 2019, it was renamed Aikonic. After obtaining the car manufacturing qualification, the new model of the seven series concept car was first unveiled in China during the 2019 Shanghai International Auto Show. At that time, it was planned to be mass-produced in 2019 and replaced in 2026, but the plan was not successfully implemented. After that, Aikonic also disappeared from the public eye.

In June 2022, Aikonik changed its name to Newton and announced the relocation of its global headquarters to the United Arab Emirates, receiving funding from the Royal Fund of the United Arab Emirates and gaining new life.

According to publicly disclosed information, the founder of Newton Group is a 41 year old Chinese named Wu Nan, and several executives of the company are suspected to be Chinese. The founder, chairman, and CEO of Newton Group is Wu Nan, and the CTO of Newton Group is Yu Shixuan. Moreover, there is almost no personal information about the founder Wu Nan on the internet, and only his year of birth can be found to be 1982. As of May 23, 2023, Wu Nan holds 77% of the voting rights of Newton Motors.

Is there a bigger plan behind three consecutive years of zero revenue?

Currently, the Newton Group is controlled by the Royal Group of the United Arab Emirates. According to public information, it has unique advantages in core technologies such as modular pure electric platforms, digital in car interconnection systems, electrical and electronic architecture, and autonomous driving. Supercars, full-size SPVs, and compact SPVs are the main products being developed by the Newton Group.

After establishing a foothold in Dubai, Wu Nan returned to China with the Newton Group.

It is worth noting that Newton's financial report shows a revenue of 0 yuan in the past three years, while its net profit losses attributable to shareholders during the same period were 11.91 million US dollars, 12.39 million US dollars, and 40.72 million US dollars, respectively. The net profit losses were 12.65 million US dollars, 13.06 million US dollars, and 41.25 million US dollars, respectively. The asset liability ratio plummeted from 1601.88% in 2020 to 20.55% in 2022.

In addition, as of the end of 2022, the company held approximately $211.9 million in cash and cash equivalents. The restricted cash is $146000, and Newton's total liabilities are $71.97 million. From the data, it can be seen that Newton's own funds are not sufficient to support its investment of $500 million in Evergrande Auto, and there are even larger investors behind it?

According to Qichacha, in June 2022, Newton Group registered and established Newton Automobile Co., Ltd., which is wholly owned by Aikonik, and the legal representative is also Wu Nan.

In September 2022, Newton Group's China New Energy Vehicle Super Factory settled in Jinhua, Zhejiang. This is the first super factory invested by Newton Group in China, with a total investment of 10 billion yuan. The factory covers an area of over 700 acres and is designed to produce 100000 intelligent passenger vehicle core components annually. It is planned to be put into operation in 2024. With the landing of the super factory and Greater China headquarters in Jinyi New Area, Newton's listing work is also steadily progressing during the same period.