Delivered more than 760 units of Hengchi 5, layoffs exceeded 60%, Hengda Automobile’s revenue surged 541% to 155 million yuan in the first half of the year

On the evening of August 25, Evergrande Motor announced its interim results for the six months ended June 30, 2023 on the Hong Kong Stock Exchange.

According to the financial report data, as of June 30, 2023, revenue was 155 million yuan, an increase of 540.98% year-on-year. Evergrande Automobile said that the increase in revenue was mainly due to the group’s start to sell Hengchi 5. The company’s gross loss was 61 million yuan, an increase of 531.54% year-on-year, mainly due to the rising prices of core components such as batteries and chips and the lack of large-scale production, which made the manufacturing cost higher.

For the six months ended June 30, 2023, Evergrande Motor said it continued to focus on high-quality production and delivery of the Hengchi 5, improving and streamlining its production management system to lay a solid foundation for future high-volume production. Among all pre-orders for the Hengchi 5 (which has been pre-ordered in July 2022),More than 760 units were delivered during the reporting periodIn terms of R & D achievements, the Group has applied for 3,512 patents in similar research fields worldwide, of which 2,715 have been granted patents.

It is worth noting that the results show that in the first half of 2023, the Group’s administrative expenses decreased by 15.54% year-on-year to 935.92 million yuan, mainly due to the decrease in employees, the salary reduction of certain current employees and the decrease in R & D expenses.

As at 30 June 2023, the Group employed a total of 1,597 employees, approximately 92% of whom had a bachelor’s degree or above, and incurred total staff costs (including director’s remuneration) of approximately RMB 313.85 million during the reporting period (H1 2022: RMB 937.98 million).

According to Evergrande Automobile’s 2022 annual report, as of December 31, 2022, the group employed 4,506 employees. According to this calculation, in the first half of 2023, Evergrande Automobile’s staff reduction rate reached 64%.

(Proofreading/Huang Rengui)