China Evergrande New Energy Vehicle Group reported a combined loss of nearly 100 billion yuan in the past three years, according to its long overdue financial reports released on Wednesday.
The NEV unit of embattled property developer China Evergrande Group posted a loss of 56.3 billion yuan for 2021, a loss of 27.7 billion yuan for 2022. For the period of 2022 – 2022, the company recorded a combined loss of 91.67 billion yuan.
The company had delayed mass production of its first model Hengchi 5 in 2021 and as of the end of May, it had delivered more than 1,000 vehicles. The carmaker had warned that it might have to wind up operations unless it obtained new funding.
As of the end of 2022, Evergrande NEV had a total of 11.6 billion yuan of overdue debt and 18.5 billion yuan of overdue commercial paper. Its cash and cash equivalents stood at 220 million yuan at the end of 2022, decreasing sharply from the 2.45 billion yuan a year earlier.
“In the future, the Group will make every effort to ensure the continuous and stable production and delivery of Hengchi 5, and launch other competitive new models one after another in line with market demand,” the company said. “The new energy automobile industry is developing positively.”