Evergrande EV Stock Loses $80 Billion in World’s Worst Rout

[Viet]

By
Sofia Horta e Costa
26 August 2021, 06:04 CESTUpdated on 26 August 2021, 10:17 CEST

• Vehicle group’s shares slump by as much as 22% in Hong Kong
• Property developer’s subsidiaries hit by fire-sale concerns

0:06
Evergrande Fire Sale Just Getting Started
Unmute


Evergrande Fire Sale Just Getting Started

Shares of China Evergrande Group’s electric vehicle unit are collapsing in Hong Kong, wiping about $80 billion from what was the property developer’s most valuable listed asset.

China Evergrande New Energy Vehicle Group Ltd. sank as much as 22% Thursday after its parent said the unit lost 4.8 billion yuan ($740 million) in the first half.

The EV business’s market value was about $87 billion at its April 16 peak, greater than that of Ford Motor Co. and almost four times the capitalization of China Evergrande itself at the time. Evergrande NEV shares are down 92% since, the worst performance in the Bloomberg World Index and lagging even China’s tutoring stocks.

Evergrande’s subsidiaries are being punished on concern the world’s most indebted developer will need to sell assets at a steep discount amid mounting pressure from Beijing. Shares of listed businesses -- including the 65% stake it owns in Evergrande NEV -- are the most liquid if Evergrande needs to generate cash quickly. Evergrande in May raised $1.4 billion from the unit in a heavily-discounted share sale.

“It’s very obvious that Evergrande New Energy is short of money,” said Castor Pang, head of research at Core Pacific-Yamaichi International H.K. Ltd. “Now that the parent company has a liquidity problem, it’s impossible for Evergrande New Energy to meet previous targets for car production.”

The electric car upstart was already a capital-intensive project for Evergrande Chairman Hui Ka Yan, who funneled billions of yuan into the business in a bid to make it “the world’s largest and most powerful new energy vehicle group” by 2025. Previously known as Evergrande Health Industry Group Ltd. before a namechange last year, the company still generates the majority of its revenue from its health business.

Speaking on an earnings call in late March after Evergrande NEV’s full-year loss for 2020 widened by 67%, Hui said the company planned to begin trial production of cars at the end of this year, delayed from an original timeline of last September.

Evergrande said earlier this month it was in talks with “several independent third-party investors” to sell stakes in the electric vehicle and property services subsidiaries. It’s selling a Hong Kong development project at a loss, people familiar with the matter said this week.

Evergrande EV Stock Loses $80 Billion in World’s Worst Rout

Shares of China Evergrande Group’s electric vehicle unit are collapsing in Hong Kong, wiping about $80 billion from what was the property developer’s most valuable listed asset.

www.bloomberg.com

 

[Viva_Viet]

By
Sofia Horta e Costa
26 August 2021, 06:04 CESTUpdated on 26 August 2021, 10:17 CEST

• Vehicle group’s shares slump by as much as 22% in Hong Kong
• Property developer’s subsidiaries hit by fire-sale concerns

0:06
Evergrande Fire Sale Just Getting Started
Unmute




Evergrande Fire Sale Just Getting Started

Shares of China Evergrande Group’s electric vehicle unit are collapsing in Hong Kong, wiping about $80 billion from what was the property developer’s most valuable listed asset.
China Evergrande New Energy Vehicle Group Ltd. sank as much as 22% Thursday after its parent said the unit lost 4.8 billion yuan ($740 million) in the first half.
The EV business’s market value was about $87 billion at its April 16 peak, greater than that of Ford Motor Co. and almost four times the capitalization of China Evergrande itself at the time. Evergrande NEV shares are down 92% since, the worst performance in the Bloomberg World Index and lagging even China’s tutoring stocks.
Evergrande’s subsidiaries are being punished on concern the world’s most indebted developer will need to sell assets at a steep discount amid mounting pressure from Beijing. Shares of listed businesses -- including the 65% stake it owns in Evergrande NEV -- are the most liquid if Evergrande needs to generate cash quickly. Evergrande in May raised $1.4 billion from the unit in a heavily-discounted share sale.
“It’s very obvious that Evergrande New Energy is short of money,” said Castor Pang, head of research at Core Pacific-Yamaichi International H.K. Ltd. “Now that the parent company has a liquidity problem, it’s impossible for Evergrande New Energy to meet previous targets for car production.”


The electric car upstart was already a capital-intensive project for Evergrande Chairman Hui Ka Yan, who funneled billions of yuan into the business in a bid to make it “the world’s largest and most powerful new energy vehicle group” by 2025. Previously known as Evergrande Health Industry Group Ltd. before a namechange last year, the company still generates the majority of its revenue from its health business.

Speaking on an earnings call in late March after Evergrande NEV’s full-year loss for 2020 widened by 67%, Hui said the company planned to begin trial production of cars at the end of this year, delayed from an original timeline of last September.

Evergrande said earlier this month it was in talks with “several independent third-party investors” to sell stakes in the electric vehicle and property services subsidiaries. It’s selling a Hong Kong development project at a loss, people familiar with the matter said this week.
View attachment 773756

CN economy look so bad now after Trump slap 25% tariff on some of CN products, so many big CN companies are on the verge of going bankrupted

 

[Kai Liu]

Funny jungle idiots don't even have the chance to ride a car in their lifetime yet talking loud about cars and car companies...lol...

Chinese car companies and battery companies are going to rule the world:

A Glimpse of Chinese EVs: the dominant power to drive the world into the future of transportation

China is by far the world's largest car market and EV market. Its EV sales reached ~1.3 million in 2020. The majority of the sales come from Chinese auto-makers such as BYD, SAIC, and NIO, etc. , with BYD ranked 1st with 183,299 plug in EV sold in 2020, followed by Wuling with 165,600 and Tesla...

defence.pk

 

[Viet]

Funny jungle idiots don't even have the chance to ride a car in their lifetime yet talking loud about cars and car companies...lol...

Chinese car companies and battery companies are going to rule the world:

A Glimpse of Chinese EVs: the dominant power to drive the world into the future of transportation

China is by far the world's largest car market and EV market. Its EV sales reached ~1.3 million in 2020. The majority of the sales come from Chinese auto-makers such as BYD, SAIC, and NIO, etc. , with BYD ranked 1st with 183,299 plug in EV sold in 2020, followed by Wuling with 165,600 and Tesla...

defence.pk

But what happens to that chinese EV carmaker evergrande??? $80b is a big money. The company seems just a hot air it can’t rule the world anywhere.

 

[Kai Liu]

But what happens to that chinese EV carmaker evergrand? ? $80b is a big money.

Someone gain, someone loses. Simple.
But more and more Chinese companies are on the Fortune 500 with growing revenue and capitalization which is the trend and makes some idiots disappointed again and again...Haha...

BTW, how many electrical cars are sold in vietnam in a year? Has it reached double-digit?

 

[Viet]

Someone gain, someone loses. Simple.
But more and more Chinese companies are on the Fortune 500 with growing revenue and capitalization which is the trend and makes some idiots disappointed again and again...Haha...

BTW, how many electrical cars are sold in vietnam in a year? Has it reached double-digit?

You rode on bicycles recently forgotten?
It’s not like you were born with EV.
Why can’t you stop arrogance and aggressiveness?
China approval rating will skyrocket.
Or you don’t care?

 

[Kai Liu]

You rode on bicycles recently forgotten?
It’s not like you were born with EV.

We rode bicycles and we drive EV, does not mean you ride bicycles and you will drive EV. You will probably ride bicycles forever...lol...

 

[Viet]

We rode bicycles and we drive EV, does not mean you ride bicycles and you will drive EV. You will probably ride bicycles forever...lol...

Having cars is nothing special. I avoid car as much as possible. Why can’t you do the same? If every chinese has a car the planet is finished.
Think about it.
You go by foot for thousands of years.

 

[Kai Liu]

Having cars is nothing special. I avoid car as much as possible. Why can’t you do the same? If every chinese has a car the planet is finished.
Think about it.
You go by foot for thousands of years.

Having cars is nothing special indeed for us or for a lot of countries, we have the choices, some people do go back to bicycle or simply walk. But that is not the point: having a car is very special for those living in vn, 99% of your population can only ride a car in their dreams. So you should keep silent when talking about cars or car industry in general, at least not so loud which is annoying, just like you don't listen to people from Somalia or from vn as well talking about technology, because you got none.

 

[Viet]

Having cars is nothing special indeed for us or for a lot of countries, we have the choices, some people do go back to bicycle or simply walk. But that is not the point: having a car is very special for those living in vn, 99% of your population can only ride a car in their dreams. So you should keep silent when talking about cars or car industry in general, at least not so loud which is annoying, just like you don't listen to people from Somalia or from vn as well talking about technology, because you got none.

With the money comes your arrogance.
Vietnam car sales is about 500,000 per year. the total installed capacity is about one million units. Vinfast capacity alone is 500,000 cars, increasing to one million units per year or more is not a problem at all. In fact she plans to increase to 1 million units per year. Thaco, the second Viet carmaker has the same capacity. How comes your 99 pct?
Vietnamese unsurprisingly say chinese are arrogant and aggressive with good reason. You don’t bring good image to your country.

 

[IblinI]

With the money comes your arrogance.
Vietnam car sales is about 500,000 per year. the total installed capacity is about one million units. Vinfast capacity alone is 500,000 cars, increasing to one million units per year or more is not a problem at all. Thaco has the same capacity. How comes your 99 pct?
People in Vietnam unsurprisingly say chinese are arrogant and aggressive with good reason. You don’t bring good image to your country.

oh is that so, what do you think of your countryman viva viet, the most arrogant and nonsense guy I have ever seen.
Does that mean vietnam is poor and also arrogant?

 

[Viet]

oh is that so, what do you think of your countryman viva viet, the most arrogant and nonsense guy I have ever seen.
Does that mean vietnam is poor and also arrogant?

Have you ever seen I totally agree with his comments?

 

[IblinI]

Have you ever seen I totally agree with his comments?

did you call those "comments", and by your standard, Can I also give out a conclusion about vietnam based on a single stupid person?

Have you ever seen I totally agree with his comments?

Btw, did you sense your leadership is extremely quiet these days on sino vietnam relations?

 

[Viet]

did you call those "comments", and by your standard, Can I also give out a conclusion about vietnam based on a single stupid person?

Btw, did you sense your leadership is extremely quiet these days on sino vietnam relations?

Ah come I don’t think you are naive. China image is extremely negative among Vietnamese. That’s not new, and just one chinese alone doesn’t cause that effect.

 

[IblinI]

Ah come I don’t think you are naive. China image is extremely negative among Vietnamese. That’s not new, and just one chinese alone doesn’t cause that effect.

ok, that makes it 1:15 then, let's see who cares more about that.