Financial Performance - The group's revenue for the reporting period was RMB 38.38 million, a decrease of RMB 116.16 million compared to RMB 154.54 million for the six months ended June 30, 2023, mainly due to a decline in sales of Hengchi 5[22]. - The group's gross profit for the reporting period was RMB 2.43 million, compared to a gross loss of RMB 60.88 million for the six months ended June 30, 2023[22]. - The group reported a loss of RMB 20,256.65 million for the reporting period, an increase of RMB 13,383.6 million from a loss of RMB 6,873.05 million for the six months ended June 30, 2023[27]. - The company reported a net loss of approximately RMB 20,257 million for the six months ended June 30, 2024[74]. - The net loss attributable to the owners of the company from continuing operations was RMB 20,254,991 thousand, compared to RMB 5,804,029 thousand in the prior year, representing an increase of 249.0%[65]. - Total comprehensive loss for the period was RMB 20,319,032 thousand, compared to RMB 7,420,203 thousand in the same period last year, reflecting a 174.6% increase[65]. - The company reported a basic and diluted loss per share of RMB 186.789 for the period, compared to RMB 63.308 in the previous year[65]. - The company reported a total impairment loss of RMB 632,913 thousand for the six months ended June 30, 2024, reflecting a significant increase compared to the previous year[99]. Financial Position - As of June 30, 2024, the total liabilities of the group amounted to RMB 74,350.14 million, with borrowings at RMB 26,590.10 million, an increase of RMB 106.02 million from December 31, 2023[19]. - The group's debt-to-asset ratio was 164.47% as of June 30, 2024, compared to 76.94% as of December 31, 2023[29]. - As of June 30, 2024, the group's cash and cash equivalents totaled RMB 54.96 million, a decrease of RMB 91.76 million from RMB 146.72 million as of December 31, 2023[28]. - The company's current liabilities net amount to approximately RMB 58,844 million[61]. - The company's cash and cash equivalents were only RMB 39 million as of June 30, 2024[61]. - The total assets as of June 30, 2024, were RMB 16,368,895 thousand, a significant decrease from RMB 34,850,768 thousand as of December 31, 2023[66]. - The total reserves as of June 30, 2024, stood at RMB 45,040,028,000, compared to RMB 45,072,080,000 as of January 1, 2024, showing a slight decrease of about 0.1%[127]. Operational Challenges - The group faced operational challenges due to external and internal factors, leading to a temporary halt in R&D and production activities[12]. - The group has implemented measures to reduce operational costs, including arranging for some staff to take leave[15]. - The group is actively working to expand sales channels and explore overseas markets to improve sales capabilities and user experience[16]. - The group plans to introduce strategic investors to secure funding for future development and to continue advancing new platforms and vehicle models[16]. - The company has taken multiple plans and measures to improve its liquidity and financial condition, including debt resolution solutions[61]. - There is significant uncertainty regarding the group's ability to continue as a going concern, dependent on successful execution of restructuring and financing plans[75]. Legal and Regulatory Issues - As of June 30, 2024, the group had 70 pending litigation cases with a total claim amount of approximately RMB 13,989 million[31]. - The company received an administrative decision from local authorities, requiring the return of approximately RMB 1.9 billion in rewards and subsidies due to breach of contract related to investment agreements[36]. - The administrative review confirmed that the subsidiaries failed to fulfill contractual obligations, leading to significant risks including forced land recovery and asset liquidation[37]. - Tianjin Evergrande received a notice to rectify three issues regarding production qualifications for new energy vehicles, which could halt production and sales during the rectification period[38]. Shareholder and Equity Information - The major shareholder, CEG, holds 6,347,948,000 shares, representing 58.54% of the company's equity[56]. - The company does not recommend the payment of an interim dividend for the six months ending June 30, 2024[43]. - The total issued share capital as of June 30, 2024, was RMB 250,936,000, with a share premium of RMB 27,873,165, resulting in a total of RMB 28,124,101[120]. - The company has granted 186,595,000 share options that are anti-dilutive for the calculation of diluted loss per share as of June 30, 2024[96]. Research and Development - The group applied for 3,512 patents in relevant research fields, with 2,718 patents granted as of June 30, 2024[12]. - The group aims to enhance manufacturing standards at the Tianjin manufacturing base to ensure high-quality production and delivery[16]. - Research and development expenses also saw a significant decline, totaling RMB 17,411,000 for the six months ended June 30, 2024, down from RMB 41,935,000 in the prior year, a decrease of about 58.6%[126]. Market and Sales Performance - The group delivered over 1,429 electric vehicles as of June 30, 2024, with a cumulative production of 1,700 units of the Hengchi 5 model[15]. - The Chinese new energy vehicle market saw production and sales of 4.929 million and 4.944 million units respectively in the first half of 2024, representing year-on-year growth of 30.1% and 32%[13]. - For the six months ended June 30, 2024, the revenue from electric vehicles was RMB 10.44 million for technical services, down from RMB 27.98 million in the same period of 2023, and RMB 5.54 million from vehicle and parts sales, down from RMB 113.37 million[86]. - The property development segment generated RMB 16.10 million in revenue, significantly down from RMB 154.54 million in the previous year[86]. Financial Risk Management - The financial risk management focuses on minimizing potential adverse impacts from market risks, credit risks, and liquidity risks[78]. - The group faces foreign exchange risk due to operations primarily in China and Hong Kong, with no foreign currency hedging policy in place[79]. - The group has not made any significant changes to its risk management policies since the year ended December 31, 2023[78].

Financial Performance - For the six months ended June 30, 2024, the group reported revenue of RMB 38 million, with a gross profit of RMB 2 million; however, the net loss totaled RMB 20,257 million, representing a year-on-year increase in loss of 194.73%[1] - The group's operating loss for the period was RMB 19,310 million, compared to an operating loss of RMB 4,813 million in the same period of the previous year[2] - The total comprehensive loss for the period was RMB 20,319 million, significantly higher than the RMB 7,420 million reported for the same period in 2023[4] - The company recorded a financial asset impairment loss of RMB 16,909 million, compared to RMB 4,267 million in the previous year[2] - The company reported a basic and diluted loss per share of RMB 186.789 for the period, compared to RMB 63.308 in the previous year[4] - The company reported a net loss attributable to shareholders of approximately RMB 20,254,991 thousand for the six months ended June 30, 2024, compared to a loss of RMB 5,804,029 thousand for the same period in 2023[21] - The basic loss per share from continuing operations was RMB (186.789) for the six months ended June 30, 2024, compared to RMB (53.524) for the same period in 2023[21] - The net loss for the reporting period was RMB 20,256.65 million, an increase of RMB 13,383.6 million compared to a loss of RMB 6,873.05 million for the same period last year[39] Assets and Liabilities - As of June 30, 2024, the total assets of China Evergrande New Energy Vehicle Group Limited amounted to RMB 16,369 million, while total liabilities were RMB 74,350 million, including borrowings of RMB 26,590 million and trade and other payables of RMB 46,695 million[1] - Total liabilities increased from RMB 72,543 million at the end of 2023 to RMB 74,350 million as of June 30, 2024[7] - The company has a net current liability of approximately RMB 58,844,000 thousand as of June 30, 2024, indicating significant financial uncertainty[26] - The group’s total borrowings as of June 30, 2024, included approximately RMB 13,991 million in current borrowings and RMB 12,599 million in non-current borrowings[10] - The total borrowings and lease liabilities amounted to RMB 26,921.86 million, an increase from RMB 26,815.25 million as of December 31, 2023[48] - The debt-to-asset ratio as of June 30, 2024, was 164.47%, significantly up from 76.94% as of December 31, 2023[48] - The company’s cash and cash equivalents decreased from RMB 128,824 thousand to RMB 39,336 thousand during the reporting period[5] - As of June 30, 2024, the group's cash and cash equivalents were only RMB 39 million, indicating a significant liquidity issue[10] - The trade receivables as of June 30, 2024, amounted to RMB 69,554 thousand, a decrease from RMB 81,916 thousand as of December 31, 2023[24] - The trade payables as of June 30, 2024, were RMB 9,542,007 thousand, slightly down from RMB 9,646,566 thousand as of December 31, 2023[25] - The company has outstanding overdue debts totaling approximately RMB 10,269 million, an increase from RMB 9,447 million as of December 31, 2023[50] Revenue Breakdown - Revenue from the new energy vehicle segment was RMB 10,435 thousand for the six months ended June 30, 2024, a decrease of 62.7% compared to RMB 27,978 thousand for the same period in 2023[14] - Revenue from property development was RMB 16,095 thousand for the six months ended June 30, 2024, down from RMB 154,539 thousand in the same period of 2023[14] - The group's revenue for the reporting period was RMB 38.38 million, a decrease of 75.17% compared to RMB 154.54 million for the six months ended June 30, 2023, primarily due to reduced sales of Hengchi 5[31] - The group’s revenue from automotive and automotive parts sales was RMB 5,540 thousand for the six months ended June 30, 2024, a significant decline from RMB 113,370 thousand in the same period of 2023[14] - The group’s revenue from lithium battery sales was RMB 1,776 thousand in the previous period, indicating a lack of current sales in this category for the reporting period[14] Operational Measures and Future Plans - The group is actively negotiating with banks and financial institutions to extend existing borrowings and bonds maturing within 12 months post June 30, 2024, as part of its financing extension plan[11] - The group plans to implement operational restructuring measures, including optimizing production and human resources, controlling capital expenditures, and attracting strategic investors[11] - The group has taken steps to alleviate cash flow pressure and improve its financial situation, but there remains significant uncertainty regarding its ability to continue as a going concern[11] - The group plans to introduce strategic investors to secure funding for survival and future development, focusing on new platform and vehicle model research and development[46] - The group aims to enhance manufacturing standards at the Tianjin manufacturing base to ensure high-quality production and delivery[47] Legal and Compliance Issues - The group is facing potential significant impacts on its financial condition due to administrative decisions regarding non-compliance with investment agreements, which may lead to forced land recovery and asset liquidation[53] - The subsidiary received a notice requiring it to rectify issues related to production qualifications, which could significantly affect the group's operational status if enforced[54] - The two subsidiaries of the company have entered bankruptcy reorganization procedures as of August 2, 2024[57] - The group had 70 pending litigation cases with a total claim amount of approximately RMB 13,989 million as of June 30, 2024, compared to RMB 13,608 million as of December 31, 2023[49] Corporate Governance - The company has complied with all corporate governance codes during the reporting period[60] - Following the resignation of an independent non-executive director, the number of independent directors fell below the required minimum, but compliance was restored with new appointments on August 5, 2024[60] - The company has adopted standard codes for securities trading by its directors, confirming compliance during the reporting period[61] - The interim financial information for the six months ending June 30, 2024, has been reviewed by the audit committee[59] - Shareholders and potential investors are advised to exercise caution and not overly rely on the forward-looking statements made in the announcement[62] Taxation - The estimated corporate income tax rate for China is 25%, with certain subsidiaries benefiting from reduced rates of 20% and 15% due to specific qualifications[18] - There was no land appreciation tax accrued for the six months ended June 30, 2024, consistent with the previous period[19] - The company recorded a deferred income tax expense of RMB (78) thousand for the six months ended June 30, 2024, compared to RMB (8,956) thousand for the same period in 2023[4] Employee and Stock Options - The total employee cost for the reporting period was approximately RMB 118.22 million, a decrease from RMB 313.85 million for the same period in 2023[51] - The stock option plan has granted a total of 752,200,000 options, with 186,595,000 options unexercised as of June 30, 2024[51]

Financial Performance and Losses - Revenue for the reporting period surged by 900.04% to RMB 1,340.15 million, driven by a significant increase in car and car parts sales from RMB 60.63 million to RMB 146.32 million[9] - Gross loss decreased by 45.44% to RMB 51.21 million compared to the previous year[10] - The company recorded a net loss from continuing operations of RMB 10,934.18 million, a 26.38% reduction compared to the previous year[16] - The company completed the sale of its health management business on May 12, 2023, resulting in a loss from discontinued operations of RMB 1,060.93 million[17] - The company reported a net loss of approximately RMB 11,995 million for the year 2023[91] - The company's net current liabilities amounted to approximately RMB 38,077 million as of December 31, 2023[91] - The cumulative losses and shareholders' losses as of December 31, 2023, were approximately RMB 110,841 million and RMB 37,693 million, respectively[91] - The company's cash and cash equivalents as of December 31, 2023, were only approximately RMB 129 million[91] - The company's auditor, PricewaterhouseCoopers, expressed a disclaimer of opinion due to significant uncertainties regarding the company's ability to continue as a going concern[91] - The company recorded a net loss of approximately RMB 11,995 million for the year ended December 31, 2023[120] - The company's net current liabilities amounted to RMB 38,077 million as of December 31, 2023[120] - The company's cash and cash equivalents were only RMB 129 million as of December 31, 2023[120] - The company faces significant uncertainty regarding its ability to continue as a going concern[120] - The company's directors have taken measures to improve liquidity and financial conditions, but the outcome remains uncertain[120] - The company's financial statements were prepared on a going concern basis, but the appropriateness of this assumption is uncertain[120] - The company's financial statements do not include adjustments that would be necessary if the going concern assumption were inappropriate[121] - The company's future cash flows indicate significant uncertainty about its ability to continue operations[121] - Revenue from continuing operations in 2023 was RMB 1,340,148 thousand, compared to RMB 134,011 thousand in 2022, representing a significant increase[126] - Gross loss for 2023 was RMB 51,211 thousand, an improvement from the gross loss of RMB 93,858 thousand in 2022[126] - Operating loss for 2023 was RMB 8,962,165 thousand, a reduction from the operating loss of RMB 12,141,468 thousand in 2022[126] - Net loss attributable to owners of the company for 2023 was RMB 11,934,199 thousand, compared to RMB 27,660,362 thousand in 2022[128] - The company's total comprehensive loss for 2023 amounted to RMB 12,241,721 thousand, with an annual loss of RMB 11,934,199 thousand and other comprehensive losses of RMB 307,522 thousand[132] - The company's accumulated losses as of December 31, 2023, stood at RMB 110,840,530 thousand, an increase from RMB 98,906,331 thousand at the beginning of the year[132] - The company's total loss for 2023 was RMB 12,302,632 thousand, including non-controlling interests of RMB 60,911 thousand[132] - The company reported a loss of RMB 11,995 million for the year ended December 31, 2023, compared to a loss of RMB 27,664 million in 2022[139] - Cumulative losses and shareholders' losses as of December 31, 2023, were RMB 110,841 million and RMB 37,693 million, respectively[139] - Cash and cash equivalents as of December 31, 2023, were RMB 129 million, down from RMB 220 million in 2022[139] Liabilities and Borrowings - Total liabilities as of December 31, 2023, amounted to RMB 72,543.32 million, with borrowings increasing by RMB 498.91 million to RMB 26,484.08 million compared to the previous year[7] - Trade and other payables increased by RMB 12,215.56 million to RMB 43,011.74 million as of December 31, 2023[8] - The company's total borrowings and lease liabilities amounted to RMB 26.815 billion as of December 31, 2023, with a debt-to-asset ratio of 76.94%[24] - Unpaid debts and overdue commercial bills amounted to RMB 9.447 billion and RMB 3.401 billion, respectively, as of December 31, 2023[27] - The company is negotiating with banks and other financial institutions to extend existing loans and corporate bonds due within 12 months after December 31, 2023, to meet financial obligations[95] - The company is negotiating with banks and financial institutions to extend existing loans and bonds due within 12 months after December 31, 2023[139] - Total liabilities as of December 31, 2023, were RMB 72,543,319 thousand, down from RMB 183,872,117 thousand in 2022[130] Assets and Impairments - Property, plant, and equipment, intangible assets, and right-of-use assets impairment losses totaled RMB 4,811.10 million, primarily due to impairments on intangible assets and construction in progress[15] - Financial asset impairment losses amounted to RMB 929.70 million, mainly due to provisions for other receivables and prepayments to third parties[14] - Total assets as of December 31, 2023, were RMB 34,850,768 thousand, a decrease from RMB 115,221,255 thousand in 2022[129] - Property, plant, and equipment decreased to RMB 12,440,969 thousand in 2023 from RMB 14,536,900 thousand in 2022[129] - Intangible assets dropped significantly to RMB 786,835 thousand in 2023 from RMB 4,477,860 thousand in 2022[129] - Cash and cash equivalents decreased to RMB 128,824 thousand in 2023 from RMB 219,941 thousand in 2022[129] - Total equity attributable to owners of the company improved to a negative RMB 37,644,349 thousand in 2023 from a negative RMB 68,600,774 thousand in 2022[129] - The company's total equity as of December 31, 2023, was RMB 37,644,349 thousand, compared to RMB 68,600,774 thousand at the beginning of the year[132] - The company's non-controlling interests as of December 31, 2023, amounted to RMB 48,202 thousand, a decrease from RMB 50,088 thousand at the beginning of the year[132] - The company's total equity attributable to owners of the company as of December 31, 2023, was RMB 45,072,080 thousand, compared to RMB 2,181,456 thousand at the beginning of the year[132] Operational Costs and Expenses - Sales and marketing costs rose by 29.97% to RMB 254.91 million due to increased promotional and brand promotion expenses for the Hengchi 5 model[12] - Administrative expenses decreased by 10.18% to RMB 2,350.22 million, primarily due to staff reductions, salary cuts, and reduced R&D expenditures[13] - The company employed 1,342 staff as of December 31, 2023, with total employee costs of RMB 706.95 million during the reporting period[28] - The company is implementing plans to alleviate liquidity pressure and improve financial conditions, including cost control measures such as temporary salary reductions and leave arrangements for employees, as well as reducing promotional expenses[94] - The company is implementing cost control measures, including production and workforce optimization, restructuring, and exploring new markets[139] New Energy Vehicle Production and Sales - Global production and sales of new energy vehicles in 2023 reached 9.587 million and 9.495 million units, respectively, with year-on-year growth of 35.8% and 37.9%, and a market share of 31.6%[18] - The company has 270 R&D personnel as of December 31, 2023, and completed four OTA upgrades for the Hengchi 5 model during the reporting period[19] - Cumulative production of Hengchi 5 at the Tianjin manufacturing base reached 1,700 units by the end of 2023[20] - Cumulative deliveries of new energy vehicles exceeded 1,389 units by the end of 2023, with 18 operational sales stores in 14 key cities[21] - The company produced a total of 1,700 units of the Hengchi 5 model at its Tianjin manufacturing base by the end of 2023[69] - Cumulative deliveries of new energy vehicles exceeded 1,389 units by the end of 2023[70] - The company operated 18 sales outlets in 14 key cities, including Guangzhou, Tianjin, Beijing, Wuhan, and Chongqing[70] - The company has 270 R&D personnel, focusing on improving the quality, functionality, and performance of the Hengchi 5 model, with four OTA upgrades completed during the reporting period[68] - The company suspended the development and base construction of power batteries due to financial constraints, focusing resources on the vehicle sector[70] - The company's R&D efforts included pre-research on the second-generation platform and optimization of the Hengchi 6 and Hengchi 7 models, though progress was impacted by funding issues[68] - The company actively reduced operating costs during the reporting period[70] Strategic Investments and Funding - The company plans to introduce strategic investors to secure funding for future development, including the launch of Hengchi 5, 6, and 7 models and expansion into overseas markets[23] - The company entered into a share subscription agreement with Newton Group on August 14, 2023, to issue 6,177,106,404 new shares at HK$0.6297 per share, totaling HK$3,889,723,903 (approximately $500 million), which would result in Newton Group holding approximately 27.50% of the enlarged issued share capital[36] - The share subscription agreement with Newton Group expired on December 31, 2023, as the parties did not agree to extend the final deadline[36] - The company received RMB 200 million in interest-free and secured transitional funding from Newton (Zhejiang) Automobile Co., Ltd. during the reporting period[36] - The company entered into a debt-to-equity conversion agreement with China Evergrande Group, Hui Ka Yan, Xinxin (BVI) Limited, Ding Yumei, and Haobang Limited on August 14, 2023, to issue 5,441,305,702 new shares at HK$3.84 per share, totaling HK$20,894,613,901.15[37] - The debt-to-equity conversion agreement expired on December 31, 2023, as the parties did not agree to extend the final deadline[38] - The company is controlling capital expenditures and discussing plans to introduce strategic investors, including restructuring plans post-investment[95] - The company's ability to continue as a going concern depends on successful execution of restructuring and financing plans[141] Board and Governance - The company's board of directors includes executive directors Xiao En (Chairman), Liu Yongzhuo, and Qin Liyong, along with independent non-executive directors Zhou Chengyan, Guo Jianwen, and Xie Wu[40] - The company's subsidiaries have no significant transactions, arrangements, or contracts in which the directors or their related parties have a material interest[42] - Xiao En, the Chairman and Executive Director, has over 30 years of business experience and holds a Master's degree in Economic Law from Southwest University of Political Science and Law[43] - Liu Yongzhuo, the President of the company, has over 20 years of corporate management experience and holds a Master's degree in Engineering Management from Wuhan University of Science and Technology[43] - Qin Liyong, the Vice President, has over 16 years of experience in large enterprise management and holds a Master's degree in Management Science and Engineering from Tongji University[43] - Zhou Chengyan, an independent non-executive director, has over 30 years of corporate finance experience and is a member of several professional accounting and financial organizations[44] - Guo Jianwen, an independent non-executive director, is a senior physician with extensive experience in traditional Chinese medicine and holds a Doctorate in Clinical Medicine[45] - Xie Wu, an independent non-executive director, has 25 years of clinical experience in traditional Chinese medicine, specializing in nephrology and blood purification[45] - Cao Hui, the General Manager of the Financial Center, holds senior accountant qualifications and has extensive experience in finance and accounting within the company[46] - The Board of Directors held 4 meetings during the year, with all executive directors attending all meetings[77][81] - The Audit Committee held 1 meeting to review and approve the annual financial statements for the year ended December 31, 2023[84] - The company has 3 executive directors and 2 independent non-executive directors, with no non-executive directors[78] - All directors participated in training courses to update their knowledge and skills, complying with the Code on Continuing Professional Development[82] - The Audit Committee reviewed the effectiveness of the internal control system and risk management with management and external auditors[84] - The company has established 4 Board Committees: Audit, Remuneration, Nomination, and Corporate Governance Committees[80] - The Audit Committee recommended the reappointment of PricewaterhouseCoopers as the external auditor for the fiscal year ending December 31, 2023[84] - The company has a formal schedule listing matters requiring Board approval, including financial policies, dividend distribution, and major structural changes[77] - The Audit Committee reviewed the Group's non-exempt continuing connected transactions for the year[84] - The company complies with the requirement that independent non-executive directors constitute at least one-third of the Board[76] - The company's board of directors reviewed the cash flow forecast prepared by management, which covers a period of at least 12 months from December 31, 2023[92] - The company's board of directors confirmed that all directors complied with the Model Code for Securities Transactions during the year[89] - The company's board of directors is responsible for ensuring the proper preparation and timely publication of the consolidated financial statements[90] - The board of directors is responsible for risk management and internal control systems, ensuring their effectiveness and supervising their design, implementation, and monitoring[96] - The audit committee reviews the risk management framework and monitors its effectiveness, including overseeing the design and implementation of risk management and internal control systems[97] - The company is continuously improving its risk management system architecture, with a clear organizational structure and defined responsibilities for risk management[98] - Senior management is responsible for promoting the construction of the risk management system, regularly reviewing policies, and reporting significant risk information to the audit committee[99] - Updated risk assessment standards based on internal and external environmental changes, focusing on business nature, strategic goals, and management risk preferences[100] - Established a continuous risk management cycle: risk identification, control implementation, follow-up, and optimization[103] - Conducted a comprehensive review of the 2023 risk management system, updating risk assessment standards and databases[104] - Implemented a COSO-based internal control framework with five interdependent elements: control environment, risk assessment, control activities, information and communication, and monitoring activities[105] - Annual review of risk management and internal control systems by the Board of Directors, covering financial, operational, and compliance monitoring[108] - Audit fees for the year amounted to RMB 5.90 million, with non-audit services fees at RMB 0.55 million[110] - Regular communication with shareholders through annual general meetings, website updates, investor briefings, and roadshows[111] - Attendance of key committee chairs and external auditors at annual general meetings to address shareholder inquiries[112] Related-Party Transactions - Total sales of new energy vehicles to China Evergrande Group's subsidiaries in 2023 amounted to approximately RMB 15,066,725.65[62] - The company has no intention of entering into new transactions for new energy vehicle sales, landscaping services, or material procurement in 2024 and beyond[61][62] - The top five customers accounted for less than 30% of total sales, and the top five suppliers accounted for less than 30% of total procurement in 2023[58] - A related-party transaction involving the sale of subsidiaries Huibao Limited and Flaming Ace Limited was completed on May 12, 2023, for a total consideration of RMB 2[59] - Liu Yongzhuo holds 20,600,000 shares of China Evergrande Group and 548,500 shares of Evergrande Property Group, representing 0.16% and 0.00% stakes, respectively[53][54] - Qin Liyong holds 4,036,000 shares of China Evergrande Group, of which 2,936,000 shares are held directly and 1,100,000 shares are held through share options[53][54] - Zhou Chengyan directly holds 1,000,000 shares of China Evergrande Group, representing a 0.01% stake[53][54] - The company confirmed that all independent non-executive directors are independent under the Hong Kong Listing Rules[57] - No management contracts for the company's business operations were entered into during the year[58] - The company's related-party transactions with China Evergrande Group were deemed fair and reasonable, conducted under normal commercial terms[63] Share-Based Payments and Stock Options - The company granted stock options to directors and designated employees, with a maximum of 10% of the issued share capital as of June 6, 2018, and any grants exceeding this limit require shareholder approval[34] - As of December 31, 2023, there were 221,515,000 unexercised stock options, a decrease from 388,600,000 as of December 31, 2022, with no new options granted, 167,085,000 options expired, and no options exercised during the reporting period[35] - Total number of employee stock options at the beginning of 2023 was 132,640,000, with 60,380,000 options expiring during the year, leaving 72,260,000 options outstanding as of December 31, 2023[49] - Employee stock options granted on November 6, 2020, have an exercise price of HKD 23.05 per share, with a market price of HKD

Financial Performance - For the reporting period, the group's revenue was RMB 1.34 billion, with a gross loss of RMB 0.51 billion and a net loss of RMB 11.99 billion, representing a year-on-year reduction in losses of 56.64%[1] - The operating loss for the period was RMB 4.55 billion, with non-operating losses from asset disposals and impairments totaling RMB 6.38 billion[1] - The loss attributable to the owners of the company from continuing operations was RMB 10.87 billion, compared to RMB 14.85 billion in the previous year[4] - The total comprehensive loss for the year was RMB 12.30 billion, down from RMB 29.80 billion in 2022[4] - The company reported a basic and diluted loss per share of RMB 110.056 for the year, compared to RMB 255.080 in the previous year[4] - The group reported a loss of RMB 11.995 billion for the year ending December 31, 2023, compared to a loss of RMB 27.664 billion in 2022[12] - Cumulative losses and shareholder losses as of December 31, 2023, were RMB 110.841 billion and RMB 37.693 billion, respectively, compared to RMB 98.906 billion and RMB 68.651 billion in 2022[12] - The group recorded a net loss of approximately RMB 11,995 million for the year ended December 31, 2023, with a significant uncertainty regarding its ability to continue as a going concern[29] Assets and Liabilities - As of December 31, 2023, the total assets of China Evergrande New Energy Vehicle Group Limited amounted to RMB 34.85 billion, while total liabilities reached RMB 72.54 billion, including borrowings of RMB 26.48 billion and trade and other payables of RMB 43.01 billion[1] - The total liabilities of the company were RMB 72.54 billion, with current liabilities accounting for a substantial portion of this figure[8] - As of December 31, 2023, the total liabilities amounted to RMB 72,543.32 million, with borrowings increasing to RMB 26,484.08 million from RMB 25,985.17 million in the previous year[32] - The group has significant non-current assets, including property, plant, and equipment valued at RMB 14.54 billion[6] - As of December 31, 2023, the group's total borrowings and lease liabilities amounted to approximately RMB 26,815.25 million, with an asset-liability ratio of 76.94%[46] Cash Flow and Financial Position - As of December 31, 2023, the company's cash and cash equivalents were RMB 0.22 billion, a decrease from RMB 0.22 billion in the previous year[6] - Cash and cash equivalents as of December 31, 2023, were RMB 129 million, down from RMB 220 million in 2022[12] - The company continues to focus on reducing losses and improving operational efficiency as part of its strategic initiatives moving forward[1] - The board believes that, considering the plans and measures in place, the group will have sufficient working capital to meet its operational needs and financial obligations for the next 12 months[13] - There is significant uncertainty regarding the group's ability to continue as a going concern, dependent on successful execution of restructuring and financing plans[14] Revenue Breakdown - Total revenue for 2023 reached RMB 4,535,254 thousand, compared to RMB 3,822,790 thousand in 2022, representing an increase of approximately 18.6%[19] - Revenue from the sale of health management products was RMB 3,195,106 thousand in 2023, down from RMB 3,688,779 thousand in 2022, a decrease of about 13.4%[20] - The revenue from technical services was RMB 37,256 thousand in 2023, down from RMB 40,916 thousand in 2022, a decrease of about 6.5%[19] - The revenue from the sale of automotive and automotive parts was RMB 203,780 thousand in 2023, compared to RMB 134,011 thousand in 2022, an increase of approximately 52%[19] - The total sales revenue from new energy vehicles for the year ending December 31, 2023, amounted to approximately RMB 15,066,725.65[59] Operational Challenges and Strategies - The group is actively implementing plans to control operational and administrative costs, including optimizing production and human resources[12] - The group has halted the development and construction of its power battery base due to funding constraints[44] - The group plans to continue the development and production of Hengchi 5, Hengchi 6, and Hengchi 7, contingent on securing strategic investors and funding[45] Corporate Governance and Compliance - The company has adhered to all corporate governance codes during the reporting period, ensuring compliance with the listing rules[55] - The company is committed to strengthening internal controls to prevent future non-compliance issues related to connected transactions[66] - The company will provide regular training to employees on regulatory and legal topics, including compliance with connected transaction regulations[66] - The company has established an independent board committee to review the fairness and reasonableness of the historical transactions[64] Shareholder and Financing Activities - Newton Group has conditionally agreed to subscribe for 6,177,106,404 new shares at a total price of HKD 3,889,723,903 (approximately USD 500 million), resulting in a 27.50% ownership post-issuance[52] - A transitional funding support agreement was signed, where Newton (Zhejiang) Automotive Co., Ltd. will provide a total of RMB 600 million in interest-free and secured transitional funds for R&D, production, and sales[53] - The debt-to-equity conversion agreement allows for the issuance of 5,441,305,702 new shares at HKD 3.84 per share, totaling HKD 20,894,613,901.15, with a conversion of approximately 25.66% of total shares post-conversion[53] - The outstanding principal amount of loans provided by China Evergrande Group is USD 1,767,815,270 (approximately HKD 13.8 billion), which will be converted into shares[54] - The final deadline for the share subscription agreement and debt-to-equity conversion agreement is December 31, 2023, after which both agreements will expire[54] Legal and Litigation Matters - As of December 31, 2023, the group had 68 pending litigation cases with a total claim amount of approximately RMB 13.608 billion[47] - The total overdue debts amounted to approximately RMB 9.447 billion, with overdue commercial bills totaling about RMB 3.401 billion[47] Employee and Workforce Information - The group employed 1,342 staff members, with 92% holding a bachelor's degree or higher[48]

Vehicle Production and Sales - As of June 30, 2023, the company delivered over 760 units of its Hengchi 5 model, which began pre-sales in July 2022[30]. - The global production and sales of new energy vehicles reached 3.79 million and 3.75 million units respectively in the first half of 2023, representing a year-on-year growth of 42.4%[31]. - The new energy vehicle market share reached 44.1% in the first half of 2023, supported by various government policies[31]. - The company has established over 60 sales outlets across 33 key cities, including Shanghai, Guangzhou, and Beijing[35]. - The company aims to expand its sales channels and explore overseas markets in the future[37]. Research and Development - The company has applied for a total of 3,512 patents in related research fields, with 2,715 patents granted as of the reporting period[30]. - The company will continue to focus on R&D for new vehicle models, aiming to provide more technologically advanced electric vehicles[37]. - The H-Smart 1.0 cockpit system and HPilot 1.0 intelligent driving assistance system have been mass-produced and launched, with 14 features including full-speed adaptive cruise control implemented[33]. - The company has ceased the development and construction of its power battery sector to concentrate resources on vehicle production[36]. Financial Performance - The company's revenue for the reporting period was RMB 154.54 million, a significant increase of 540.98% compared to RMB 24.11 million for the six months ended June 30, 2022, primarily due to the sales of Hengchi 5[43]. - The gross loss for the reporting period was RMB 60.88 million, an increase of 531.54% from RMB 9.64 million for the same period last year, mainly due to rising prices of core components like batteries and chips[44]. - The total loss from continuing operations for the reporting period was RMB 5,812.12 million, a 50.09% increase compared to the loss of RMB 3,872.12 million for the six months ended June 30, 2022[46]. - The net loss attributable to owners for the first half of 2023 was RMB (6,864,958) thousand, compared to RMB (13,361,778) thousand in the first half of 2022[78]. - The company reported a significant increase in trade and other payables, which rose to RMB 42,273,480 thousand from RMB 30,796,181 thousand year-over-year[75]. Liabilities and Financial Position - As of June 30, 2023, the total liabilities of the company amounted to RMB 75,692.16 million, with borrowings increasing to RMB 26,997.15 million from RMB 25,985.17 million as of December 31, 2022, representing a rise of RMB 1,011.98 million[40][41]. - The company's debt-to-asset ratio was 64.30%, calculated based on total borrowings relative to total assets[47]. - Current liabilities net amount to approximately RMB 36.605 billion, down from RMB 75.614 billion at the end of 2022, indicating liquidity challenges[72]. - The company has capital commitments of approximately RMB 13,071 million for construction and fixed asset purchases across various locations[48]. - There were 48 pending litigation cases with a total claim amount exceeding RMB 10,887 million as of June 30, 2023[49]. Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 96,886,000 from RMB 219,941,000, reflecting cash flow issues[74]. - The company is implementing various measures to improve liquidity amid significant uncertainties regarding its ability to continue as a going concern[72]. - The group needs to secure substantial funding in the foreseeable future to meet its financial obligations[84]. - The company has reviewed its cash flow forecasts until June 30, 2024, indicating sufficient operating funds to meet financial obligations[86]. - The group’s cash flow from operating activities significantly decreased compared to the previous year, indicating potential liquidity challenges[81]. Shareholder and Equity Information - The company has a stock option plan with a total of 864,000,000 shares available for issuance, representing about 7.97% of the issued shares as of the report date[50]. - China Evergrande Group holds 6,347,948,000 shares, representing 58.54% ownership[65]. - The total equity attributable to shareholders was RMB 28,124,101,000 as of June 30, 2023, unchanged from the previous period[116]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, similar to the previous year[53]. Operational Changes and Strategies - The company completed the sale of Huibo Limited and Flaming Ace Limited for a total consideration of RMB 2, resulting in the disposal of 100% of the issued share capital of both subsidiaries on May 12, 2023[51]. - The company has not made any significant investments or capital asset acquisitions during the reporting period[51]. - The company has not established any foreign exchange risk hedging arrangements, which may impact its foreign exchange reserves due to fluctuations in the RMB[52]. - The company has signed a transitional funding support agreement for a total amount of RMB 600 million to support its automotive R&D, production, and sales[55]. Employee and Management Information - The company employed 1,597 staff members, with approximately 92% holding a bachelor's degree or higher, resulting in total employee costs of RMB 313.85 million for the reporting period[50]. - The total compensation for key management personnel was RMB 45,460 thousand for the six months ended June 30, 2023, down from RMB 92,063 thousand for the same period in 2022, indicating a decrease of approximately 51%[152]. Market and Economic Conditions - The company faces significant uncertainties regarding the support from creditors and the successful implementation of its plans and measures[86]. - Financial risk management focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[89]. - The company has not disclosed any new strategies or market expansions in the provided documents[64].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 CHINA EVERGRANDE NEW ENERGY VEHICLE GROUP LIMITED 中 國 恒 大 新 能 源 汽 車 集 團 有 限 公 司 （ 於香港註冊成立之有限公司） （股份代號：708） 截至2023年6月30日止六個月 中期業績公告 中期業績 中國恒大新能源汽車集團有限公司董事（「董事」）組成之董事會（「董事會」）欣然呈列本公司 及 其 附 屬 公 司 截 至2023 年 6 月 30 日 止 六個 月 之 未 經 審 核 中 期 業 績 ， 連 同呈 列 於 本 公 告 以 作 參考之比較數字。 財務摘要 1、 本集團持作出售之終止經營之業務（ 即剝離地產項目）於2023年5月12日完成，導致財務 報表的淨負債減少人民幣431.39億元。截至2023年6月30日，本公司淨負債降至人民幣 328.4億元。 2、 截 至 2023 年 6 月 30 日 ， 本 集 團 資 產 總 ...

Financial Performance - The revenue from the ongoing business, primarily the new energy vehicle segment, was RMB 134.01 million in 2022, representing a 78.71% increase from RMB 74.99 million in 2021[17]. - The sales revenue from automotive and automotive parts surged from RMB 1.75 million in 2021 to RMB 60.63 million in 2022[17]. - The total loss for the reporting period was RMB 27,663.71 million, a 50.90% reduction compared to the loss in 2021[20]. - The gross loss for the year was RMB (93,858) thousand, an improvement from RMB (170,840) thousand in the previous year[130]. - Operating loss for the year was RMB (12,141,468) thousand, compared to RMB (24,844,989) thousand in 2021, indicating a reduction in losses[130]. - The total comprehensive loss for the year was RMB (29,803,297) thousand, compared to RMB (56,581,258) thousand in 2021, showing a significant decrease[131]. - The company recorded a net loss of approximately RMB 27.66 billion for the year ended December 31, 2022[122]. - The company's accumulated losses increased from RMB 71.24 billion in 2021 to RMB 98.91 billion in 2022, reflecting a rise of approximately 38.8%[127]. Assets and Liabilities - The total liabilities as of December 31, 2022, amounted to RMB 183.87 billion, an increase of RMB 62.90 billion compared to RMB 117.66 billion in 2021 after excluding advance payments[14]. - As of December 31, 2022, the total borrowings and lease liabilities of the group amounted to RMB 41,141.43 million, a slight decrease from RMB 41,678.64 million as of December 31, 2021[29]. - The total assets decreased from RMB 143.57 billion in 2021 to RMB 115.22 billion in 2022, representing a decline of approximately 19.7%[127]. - The total current assets decreased from RMB 109.85 billion in 2021 to RMB 92.82 billion in 2022, a decline of about 15.5%[127]. - The company’s property, plant, and equipment decreased from RMB 20.99 billion in 2021 to RMB 14.54 billion in 2022, a decrease of approximately 30.7%[127]. - The company’s inventory increased from RMB 200.50 million in 2021 to RMB 521.89 million in 2022, an increase of about 160.5%[127]. - The company has outstanding overdue debts totaling approximately RMB 11.63 billion as of December 31, 2022, along with overdue commercial bills amounting to approximately RMB 18.51 billion[30]. Operational Developments - The sales of the Hengchi 5 model began in July 2022, with over 320 units delivered by the end of the reporting period[12]. - The first mass-produced model, Hengchi 5, began delivery in October 2022 after starting pre-sales in July and mass production in September[21]. - The group has shifted its focus entirely to the new energy vehicle segment, discontinuing its health management services business[12]. - The group plans to focus on the development of new energy vehicles and will continue to enhance R&D investment and product offerings[28]. - The R&D team consists of 811 personnel, focusing on major development work including intelligent networking and autonomous driving technologies, with Hengchi 5 entering mass production in September 2022[68]. Governance and Management - The board of directors includes three executive directors and three independent non-executive directors, ensuring a balanced governance structure[42]. - The company is committed to maintaining transparency with shareholders regarding board member elections and service contracts[44]. - The management team is empowered to execute daily operations and make decisions on significant business issues, with certain matters requiring board approval[80]. - The company has a structured approach to board member rotation, ensuring that one-third of directors retire annually[42]. - The company’s executive team has extensive experience, with the chairman having over 30 years in business and the president over 20 years in real estate operations[45][46]. Financial Risks and Uncertainties - There is significant uncertainty regarding the group's ability to continue as a going concern, depending on successful execution of restructuring and financing plans[140]. - The company has taken measures to improve its liquidity and financial position, although significant uncertainty remains regarding its ability to continue as a going concern[122]. - The group faces multiple financial risks, including market risk (foreign exchange and interest rate risks), credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[200]. Research and Development - The group applied for a total of 3,512 patents in related research fields, with 2,632 patents granted as of the reporting date[12]. - The company has a strong focus on research and development, with key personnel holding advanced degrees in engineering and management from reputable institutions[50]. - The company is focusing on the development of its electric vehicle segment, with a gradual slowdown in investment in battery R&D and infrastructure construction due to financial conditions[69]. Shareholder Communication - The company provides various channels for shareholders to communicate, including annual general meetings and regular updates through its website[115]. - The company emphasizes communication with institutional investors to enhance transparency and has participated in multiple roadshows and investment meetings throughout the year[119]. Revenue Recognition and Accounting Policies - The company changed its revenue recognition policy to include additional conditions for recognizing revenue, effective from January 1, 2021[141]. - Revenue is measured at fair value of consideration received or receivable, net of discounts and returns, and is recognized when specific conditions are met[192]. - The company recognizes revenue from the sale of wellness spaces, lithium batteries, and automotive parts when control of the asset is transferred to the buyer, which can occur over time or at a specific point in time[193].

New Energy Vehicle Development - The global production and sales of new energy vehicles reached 2.661 million and 2.6 million units respectively in the first half of 2022, representing a year-on-year growth of 120%[37] - The company completed the development and verification of the Hengchi 5 model, paving the way for mass production[35] - The company has 952 research and development personnel focused on software development for the Hengchi 5 and subsequent models[40] - The company is focusing on the development and mass production of complete vehicles, while gradually slowing down investment in power battery research and development[41] - The company aims to leverage government policies and market potential to strengthen technology research and development and enhance product layout in the new energy vehicle sector[39] - The company has integrated its Hengchi APP with various charging platforms, providing smart charging services to customers[43] Sales and Marketing - The company operates 23 automotive lifestyle space projects, achieving sales of 78 units with a total sales area of 6,000 square meters[44] - The company has established a sales channel network using a direct sales and authorized agency model in key cities such as Shanghai, Guangzhou, and Beijing[42] - The company has signed strategic cooperation agreements with major automotive repair brands to expand after-sales service networks nationwide[42] Financial Performance - The group reported a significant increase in revenue, with total operating revenue rising 84.72% to RMB 1,509.83 million compared to RMB 817.35 million for the same period in 2021[52] - The group recorded an operating loss of RMB 2,213.27 million during the reporting period[55] - The group reported a net loss of approximately RMB 13.365 billion for the six months ended June 30, 2022[84] - The total loss for the period was RMB 13,364,913 thousand, compared to a loss of RMB 5,548,806 thousand in the first half of 2021, reflecting an increase in losses of approximately 141.5%[92] - The company reported a net loss attributable to shareholders of RMB 13,361,778 thousand for the six months ended June 30, 2022, compared to a loss of RMB 5,486,628 thousand in the same period of 2021, representing an increase in loss of 143.5%[192] Assets and Liabilities - The group's total liabilities as of June 30, 2022, amounted to RMB 184,466.21 million, with net liabilities (excluding advance payments) at RMB 128,538.45 million, an increase of RMB 10,879.73 million year-on-year[49] - The group's debt-to-asset ratio increased to 31.76% from 29.03% at the end of 2021[58] - The total cash and cash equivalents, along with restricted cash, amounted to RMB 2,788.27 million as of June 30, 2022[57] - The group's current liabilities amounted to approximately RMB 70.614 billion[84] - The company’s total liabilities included trade and other payables amounting to RMB 12,338,168 thousand[109] Cash Flow and Financing - The company raised approximately HKD 2.7 billion by placing 900 million shares at HKD 3.00 per share, a discount of about 15.01% from the last trading price[61] - The net proceeds from the share placement, after deducting commissions and expenses, were approximately HKD 2.635 billion, fully utilized for the R&D and production of new energy vehicles[61] - The company raised RMB 3,017,334 thousand from borrowings during the period, compared to RMB 3,739,000 thousand in the same period of 2021[98] - The group is actively negotiating with banks and financial institutions to extend existing borrowings and raise short-term and/or long-term financing to fulfill financial responsibilities due within the next twelve months[111] Employee and Operational Metrics - As of June 30, 2022, the group employed 5,292 staff, with approximately 88% holding a bachelor's degree or higher, resulting in total employee costs of RMB 937.98 million[62] - Employee benefits expenses decreased to RMB 622,935 thousand for the six months ended June 30, 2022, down 55.0% from RMB 1,391,586 thousand in the same period of 2021[184] Accounting and Compliance - The company has adopted revised accounting standards effective from January 1, 2022, which are not expected to have a significant impact on the interim financial data[105] - The independent auditor's report indicates significant uncertainties regarding the group's ability to continue as a going concern[84] - The company has not yet adopted new standards related to insurance contracts and financial statement presentation, effective January 1, 2023[105] Shareholder Information - The company’s major shareholder, Evergrande Health Industry Holdings Limited, holds 6,219,500,000 shares, representing a significant portion of the total shares[76] - The major shareholder, China Evergrande Group, holds approximately 6,347,948,000 shares, representing 58.54% of the total equity[78] Contract Liabilities and Revenue Recognition - As of June 30, 2022, the company reported a contract liability of RMB 20,090,944 thousand, indicating significant unrecognized revenue[109] - The company recognized revenue related to contract liabilities of RMB 1,354,523 thousand from health management sales for the six months ended June 30, 2022[141] Impairment and Losses - The company reported a net financial asset impairment loss of RMB (102,281) thousand for the first half of 2022, compared to RMB (51,721) thousand in the same period of 2021, reflecting an increase in impairment losses of approximately 97.5%[92] - The company incurred a significant loss of RMB 4,116,376 thousand from land exit losses during the six months ended June 30, 2022, compared to RMB 159,300 thousand in the same period of 2021[185]

Financial Performance - The company's revenue for the reporting period was RMB 2,531.22 million, a significant decrease of 83.66% from RMB 15,486.63 million in 2020, primarily due to a decline in the health management segment[19]. - The group recorded a gross loss of RMB 831.84 million in the reporting period, a significant decline from a gross profit of RMB 2,790.30 million in 2020, resulting in a gross margin drop from 18.02% in 2020 to -32.86% in 2021[20]. - The group reported an operating loss of RMB 16,902.30 million for the period, with non-operating losses totaling RMB 40,376.68 million, leading to a total loss of RMB 56,344.38 million, more than a sevenfold increase compared to 2020[23][25]. - The company reported a net loss of approximately RMB 56.34 billion for the year ended December 31, 2021[132]. - The total comprehensive loss for the year was RMB 56,581,258 thousand, compared to RMB 4,915,429 thousand in 2020[141]. - The company reported a total loss of RMB 39,338,982 thousand for the year ending December 31, 2021, compared to a loss of RMB 5,838,522 thousand for the year ending December 31, 2020, reflecting a significant increase in losses[137]. Revenue Segments - The health management segment's revenue dropped from RMB 15,267.58 million in 2020 to RMB 2,388.36 million in 2021, a decrease of 84.36%[19]. - The revenue from the new energy vehicle segment decreased from RMB 187.53 million in 2020 to RMB 72.38 million in 2021, a decline of 61.41%[19]. - The automotive living space segment achieved sales of 20,090 units, totaling 1.98 million square meters, with an average discount of 37% offered to buyers[30]. - The health management segment recorded sales of 25,373 units, with a total sales area of 2.19 million square meters, where residential properties accounted for the largest share with 19,722 units sold[31]. Assets and Liabilities - The total liabilities of the company as of December 31, 2021, amounted to RMB 182,908.36 million, with a net liability of RMB 117,658.72 million after excluding advance receipts, a decrease of RMB 14,779.67 million compared to 2020[16]. - As of December 31, 2021, the total borrowings and lease liabilities amounted to RMB 41,678.64 million, down from RMB 73,010.03 million in 2020, resulting in a debt-to-asset ratio of 29.03%[33]. - The company's total assets as of December 31, 2021, amounted to RMB 143,569,374 thousand, a decrease from RMB 150,064,740 thousand as of December 31, 2020, representing a decline of approximately 4.9%[137]. - Non-current assets were valued at RMB 33,723,634 thousand as of December 31, 2021, down from RMB 46,843,248 thousand in the previous year, indicating a decrease of about 28%[137]. Cash Flow and Financing - The cash and cash equivalents, along with restricted cash, totaled RMB 5,261.22 million as of December 31, 2021[26]. - The company raised RMB 24,364,691 thousand through private placement of ordinary shares during the financing activities[144]. - The company reported a significant increase in borrowings, with RMB 14,883,197 thousand raised compared to RMB 42,391,773 thousand in the previous year[144]. - The company has capital commitments of approximately RMB 17.069 billion for the construction of various bases and fixed asset acquisitions across China[34]. Research and Development - The company established R&D bases in Shenzhen and Shanghai to focus on the development of lithium-ion batteries and next-generation battery technologies[14]. - The company aims to create a globally recognized Chinese automotive brand through technological advancements and data integration in the new energy vehicle sector[14]. - The group has over 1,285 R&D personnel and is focusing on core product development, particularly in smart connected and autonomous driving technologies[27]. - The company is advancing its battery research with plans for the development of ternary batteries and the establishment of a pilot base for lithium iron phosphate batteries[29]. Corporate Governance - The company’s board of directors includes both executive and independent non-executive members, with changes in appointments noted[48]. - The company has established a shareholder communication policy to ensure effective dialogue with institutional investors[124]. - The board of directors held a total of 6 meetings during the year, with all members attending[94]. - The company has maintained compliance with corporate governance codes and regulations throughout the year[87]. Legal and Compliance - There are currently 11 pending litigation cases with a total claim amount of approximately RMB 1.594 billion as of December 31, 2021[35]. - The company has outstanding overdue debts totaling approximately RMB 7.336 billion and overdue commercial bills amounting to approximately RMB 11.872 billion as of December 31, 2021[35]. - The independent auditor expressed significant uncertainty regarding the company's ability to continue as a going concern due to the financial situation[133]. Market Trends - In 2021, global sales of new energy vehicles reached 6.6 million units, a year-on-year increase of 108%, with China's market continuing to lead globally[26]. - The group developed six vehicle models in 2021, including Hengchi 1, 3, 5, 6, 7, and SX41, with the first Hengchi 5 successfully rolling off the production line in December 2021[27]. Employee and Management - As of December 31, 2021, the company employed 6,286 staff, with 89% holding a bachelor's degree or higher, and total employee costs of approximately RMB 2,766.01 million[38]. - The management team includes professionals with advanced degrees in engineering and business, enhancing the company's strategic capabilities[54]. - The company reported a gender ratio of 27% female to 73% male among employees, including directors and senior management, as of December 31, 2021[99].

Financial Performance - For the year ended December 31, 2022, the company reported a total loss of RMB 56,344,378, compared to a loss of RMB 27,663,709 in 2021, representing an increase of 104% in losses year-over-year[5]. - The operating loss for the year was RMB 24,844,989, which is a significant increase from RMB 12,141,468 in the previous year, indicating a worsening operational performance[5]. - The company recorded a net financial cost of RMB 1,788,377 for 2022, compared to RMB 1,222,810 in 2021, reflecting a 46% increase in financial expenses[5]. - The company reported a basic loss per share of RMB 585.319 for the year ended December 31, 2022, compared to RMB 255.080 in 2021, showing a decline in shareholder value[10]. - The company experienced a net impairment loss of RMB 11,399,078 on property, plant, and equipment, which is an increase from RMB 8,251,044 in 2021, highlighting challenges in asset valuation[5]. - The company reported a net loss attributable to shareholders of RMB 14,849,590,000 from continuing operations in 2022, a decrease from RMB 27,346,778,000 in 2021, indicating an improvement of approximately 45%[24]. - The basic loss per share from continuing operations was RMB (136.941) in 2022, compared to RMB (284.438) in 2021, reflecting a reduction of about 52%[24]. - The group reported a loss of RMB 27.664 billion for the year ended December 31, 2022, compared to a loss of RMB 56.344 billion in 2021[18]. - Cumulative losses reached RMB 98.906 billion as of December 31, 2022, up from RMB 71.241 billion in 2021[18]. - The group recorded a total loss of RMB 27,663.71 million for the reporting period, a 50.90% reduction compared to the loss in 2021[50]. Assets and Liabilities - The total assets of the company as of December 31, 2022, were RMB 115,221,255, a decrease from RMB 143,569,374 in 2021, indicating a reduction in asset base[14]. - The total liabilities of the company as of December 31, 2022, were RMB 183,872,117, slightly up from RMB 182,908,356 in 2021, indicating a stable liability position despite increased losses[14]. - The company’s equity attributable to owners decreased to RMB (39,291,901) as of December 31, 2022, from RMB (68,600,774) in 2021, reflecting a deterioration in financial health[14]. - Total liabilities for 2022 amounted to RMB 183,872.12 million, with net liabilities (excluding advance payments) of RMB 180,558.47 million, an increase of RMB 62,899.75 million from RMB 117,658.72 million in 2021[42]. - As of December 31, 2022, the group's borrowings were RMB 25,985.17 million, down RMB 14,679.74 million from RMB 40,664.91 million in 2021, with an average interest rate of 7.65%[43]. - The group's debt-to-asset ratio improved to 23.09% as of December 31, 2022, down from 29.03% a year earlier[57]. Cash Flow and Liquidity - Cash and cash equivalents stood at RMB 220 million as of December 31, 2022, a significant decrease from RMB 2.453 billion in 2021[18]. - The company's cash and cash equivalents were only RMB 219,941,000 as of December 31, 2022, raising concerns about liquidity and the ability to meet financial obligations[31]. - The group anticipates sufficient operating cash flow to meet its financial obligations for the next 12 months[20]. - The group has significant uncertainty regarding its ability to continue as a going concern, depending on successful execution of its restructuring and financing plans[20]. Operational Strategy and Restructuring - The company has not provided specific guidance for future performance or new product developments in the available documents, indicating a potential focus on restructuring and recovery strategies[5]. - The group aims to control operational and administrative costs through various measures, including optimizing production and human resources[19]. - The group has taken steps to improve its financial situation, including a business and operational restructuring plan[20]. - The group is actively negotiating with banks and financial institutions to secure financing for existing debts maturing within the next 12 months[19]. - The group is focusing on the new energy vehicle sector, having decided to gradually eliminate its health management services business[38]. - The group aims to improve manufacturing capabilities at its Tianjin base and enhance its quality system to meet planned production capacity[56]. - The group plans to enhance R&D investment to strengthen its technological foundation and focus on developing competitive new vehicle models[56]. Sales and Marketing - The group generated revenue of RMB 2.456 billion from health management and related services, with RMB 2.388 billion from wellness space sales[21]. - The annual sales volume of health management services decreased from approximately 19,000 units in 2021 to below 1,000 units in the reporting period, with total sales area dropping from about 2.2 million square meters to below 156,000 square meters[39]. - The group established 60 sales outlets in 33 key cities, utilizing a direct sales and authorized dealership model for Hengchi vehicles[54]. - The group aims to expand its marketing efforts by establishing experience centers, sales centers, and after-sales service centers[56]. Audit and Compliance - The independent auditor's report expressed a disclaimer of opinion due to significant uncertainties regarding the company's ability to continue as a going concern, with a net loss of approximately RMB 27,663,709,000 for the year ended December 31, 2022[31]. - The independent auditor noted a lack of sufficient appropriate audit evidence regarding the appropriateness of the going concern assumption, which could significantly impact the financial statements[32]. - The independent auditor confirmed that the company does not have significant off-balance sheet transactions or liabilities[35]. - The independent auditor has not expressed an opinion on the company's ability to continue as a going concern due to significant uncertainties[36]. Future Outlook - The group has not declared any dividends for the year ending December 31, 2022, consistent with the previous year[60]. - Forward-looking statements in the announcement are not guaranteed to be achieved or accurate, and shareholders or potential investors should exercise caution[65]. - Trading of the company's shares has been suspended since April 1, 2022, and will continue until further notice[66].