Xu Jiayin 30 Billion Hit The Auto Industry: How Hengda New Energy Is The Key To Hematopoiesis

On the afternoon of March 30th, the 2019 performance report of Hengda health industry group (00708.HK, hereinafter referred to as "Hengda health") showed that last year, the new energy vehicle business lost a net loss of 3 billion 310 million yuan, and the margin of losses increased nearly doubled compared with the same period last year.

Hengda health listed in 2008 is the platform for Hengda Group to deploy new energy vehicles and health industry. In 2018, Hengda health began to get involved in new energy vehicles. Last year, it frequently acquired the upstream and downstream companies of the automotive industry chain, and shouted the goal of "3-5 years to become the world's largest and most powerful new energy vehicle group".

But like all companies that have just entered the auto manufacturing industry, Evergrande is facing "ideal fullness, but a sense of reality". From 2018 to now, Hengda's new energy vehicle business has lost more than 5 billion of its total losses, and the information disclosed by Hengda health executives shows that this year's losses will remain unchanged.

Pan Darong, chief financial officer of Hengda health, said: "this state (loss) is phased and temporary. By 2021, we will have a significant improvement in our report data after we have achieved full scale production."

He emphasized the Hengda Group behind Hengda health. He called Hengda Group as an enterprise with "total assets of 2 trillion and 100 billion, annual sales scale of over 600 billion, and the top 500 of the world in 138th place". It has enough capital strength to invest in new energy vehicle business.

The new energy vehicle business is racing against time, and Hengda is trying to deliver such information. "At present, our work in engineering technology, modeling design and manufacturing is progressing smoothly in an orderly and orderly manner. Even in the West during the Christmas and New Year holidays and the current severe epidemic situation, the Evergrande project team in Europe has never ceased to fight. Peng Jianjun, vice-chairman of Hengda health group and President of Sweden NEVS, said.

The industry expects Hengda to submit its work to the market as soon as possible. As the most powerful capital of the "new car manufacturing force", how will the Congress interpret new energy vehicles?

Although Hengda Group relies on Hengda health to emphasize "not bad money", but from the perspective of business operation, long-term loss operation is not realistic. Moreover, some recent personnel changes in Hengda also indicate to some extent that under the special background of the new crown pneumonia epidemic, the capital pressure of Hengda itself is also tightening.

Car investment totaled more than 30 billion

The main reason for the massive loss of new energy vehicle business is that the current business is less developed and the revenue is less.

Pan Darong said that the main reason for the loss of Hengda new energy vehicle is that it is still in the investment stage. "During the reporting period, our funds are mainly invested in base construction, equipment, R & D, equity acquisition, material and manufacturing costs, and at the same time, new cars have not yet been delivered in mass production. The combination of them will lead to more investment and less profits."

He also pointed out that the auto industry is a long chain of industries and a long cycle of return, especially for new energy vehicles. The vast majority of new energy vehicle companies are at different stages of investment because of their involvement in the world. Even the world's largest new energy vehicle company Tesla has not yet realized its annual profit for ten years.

Earnings report shows that Hengda health new energy vehicle revenue in 2019 was 660 million yuan, no vehicle sales revenue, mainly supported by lithium-ion battery sales. In the 660 million yuan revenue, lithium battery sales amounted to 588 million yuan, technical services 65 million 796 thousand yuan, and automobile component sales amounted to 6 million 290 thousand yuan.

In the past two years, Hengda health has invested huge sums of money in the massive mergers and acquisitions of the new energy vehicle industry chain. According to the twenty-first Century economic report reporter, in the past year alone, Hengda health has spent more than 10 billion yuan on the M & a level. If combined with previous investment, the total scale has exceeded 30 billion.

From public information such as annual reports, Hengda health plan has amortized the new energy vehicle patents, know-how and privileges costs in 5-18 years, and amortized the 2-10 year acquisition of computer software licensing rights. Even under long-term amortization, short-term operating performance is difficult to offset investment.

It is worth mentioning that after the acquisition of Swedish NEVS, Evergrande still did not have a single vehicle sales revenue. Last year, at the summit of the global strategic partnership of the Hengda new energy automobile group, which was very eye-catching, Hengda's high-profile "mass production" was downloaded "national energy 93" ("NEVS 93"), but this car unexpectedly disappeared in the Hengda product planning sequence.

In the performance exchange conference, Hengda health executives talked about the product listing plan, did not mention this "mass production offline" "national energy 93" and the production of this car's Tianjin base.

Peng Jianjun said that through the establishment of AEPMT (European project joint command center) in Graz, Austria, the teams of 3 models distributed in Germany and Austria will be integrated in the European, Japanese and US styling design teams to ensure that the new models will be put into mass production in the end of 2021 and early 2022.

Pan Darong mentioned in the new energy vehicle business report data, "by the year 2021, after the whole series of products are fully realized, our report data will have a very significant improvement."

When asked about the new energy vehicle production base, Peng Jianjun specifically carried out two production bases in Nansha, Guangdong and Shanghai, indicating that they will be completed in the second half of 2020 and put into operation in 2021, with the first phase planning capacity of 200 thousand vehicles, but no mention of the Tianjin base which has been completed and has mass production function.

It is noteworthy that Evergrande does not say that hengchi products will be the first to start production, while the "national energy 93" and the Saab platform behind it no longer seem to be the focus of Hengda. When introducing the 14 models that are being developed at the same time, Peng Jianjun said that "big, medium and small platforms under Hengda 3 architecture have been developed" based on Ben teller chassis.

The national energy base and Tianjin base seem to be marginalized. People close to Hengda told reporters on twenty-first Century economic report that the information inside the company had even been sold to the Tianjin base, but it was not possible from its resources and status.

Tianjin base is the first vehicle project of the national energy automobile and its founder Jiang Dalong in China. It has the qualification of new energy vehicle production. It is the premise for normal operation of Hengda construction base. It needs to be pointed out that, if we strictly abide by the investment management regulations of the automobile industry, only the Tianjin base will be put into production, other bases will be able to produce.

Continue to buy and buy?

New energy vehicles cost a lot, but Hengda is quite prepared for this situation.

Prior to that, Xu Jiayin, chairman of the board of directors of Hengda Group, said that Hengda's investment budget for new energy vehicles in the three year was 45 billion, of which 20 billion was invested in 2019, 15 billion in 2020 and 10 billion in 2021. Although the amount of investment will gradually decrease in the past two years, it is still quite large in terms of absolute quantity.

Hengda will continue to invest in new energy vehicles. Hengda health executives have reiterated this point at the performance conference and said they will continue to invest in R & D and manufacturing. According to the plan, Hengda will develop 14 new energy vehicles, and will launch mass production in the end of 2021 to early 2022.

It is noteworthy that will Hengda continue to carry out mergers and acquisitions? In the past year, Hengda health has invested in the upstream and downstream industries such as Sweden NEVS, Shanghai carneth energy, Tate electric and other new energy vehicles, batteries, motors and other industrial chain. Earlier in 2018, Hengda also invested 14 billion 500 million yuan to become the second largest shareholder of Guanghui group, a group of automobile dealers. The acquisition of large acquisitions is the characteristic path for Hengda to enter the new energy vehicle industry, Xu Jiayin. Buy buy buy is also regarded as one of Hengda's strategy.

In addition, Hengda has plans to further strengthen its position in holding companies. Last November, Hengda Health announced that it would increase its capital to NEVS by a wholly owned subsidiary, Mini Minor. After the completion of the capital increase, Hengda will hold 82.4% of NEVS's equity, and the National Modern controlled by NEVS founder Chiang long long will hold a 17.6% stake in NEVS.

It is reported that the above capital increase has not been completed, and the specific transaction will be "made within one year". Before that, Hengda health also increased the battery company's new energy. In July 2019, Hengda Health Group's Hengda New Energy Technology Group signed an agreement with Shenzhen Bang Ya Electronic Technology Co., Ltd., the former invested 178 million yuan to acquire 9.5890% stake in Shanghai carai new energy limited company, while Hengda had acquired 70.27% stake in carai new energy.

Obviously, the pace of mergers and acquisitions will not stop abruptly. However, when the upstream and downstream industries of the industry chain were acquired in a rough and thick way, the internal market of Hengda also began to change.

In March 17th, Hengda Group issued a notice on the talents of the group's system, and asked all units to make recommendations on the development of the business. After listing the names of the staff, the internal changes of Hengda rapidly fermented in the social network.

According to Qi Xinbao's data, Heng Dabao Group Co., Ltd. was founded in February 28, 2020, with a registered capital of 3 billion yuan, and is invested by Shenzhen Ying Mao Investment Co., Ltd. 100%. Its business scope is sales of real estate, automobiles, electric vehicles, and new energy vehicles.

In this round of adjustment, Hengda new energy vehicle can not be excluded. A Hengda new energy vehicle insider told reporters on twenty-first Century economic report that Evergrande group's all businesses were affected, and new energy vehicles were no exception.

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