Photo: IC Photo
China Evergrande Group, the country’s third-largest real estate firm by sales, is betting big that the electric vehicle (EV) sector will continue to boom, even as the government plans to phase out subsidies that have created the market explosion in the first place.
With ambitions to become the world’s largest new-energy vehicle (NEV) company, Evergrande poured more than 14.1 billion yuan ($2 billion) into such projects in the first half of this year. The group said it planned to invest another 6 billion yuan during the rest of the year.
Yet so far, the bold plans haven’t lived up to expectations.
Early this month, Evergrande Health Industry Group, the wholly-owned unit that operates the group’s NEV business and health care business, forecasted that it would book a net loss of 2 billion yuan in the first half of this year.
The unit attributed that loss to surging costs in its NEV business, including investment-related projects and research and development expenses.
Read the full story at Caixin Global later today.
Contact reporter Tang Ziyi (email@example.com)