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].

Financial Performance - The company reported a net loss of RMB 13,364,913 thousand for the six months ended June 30, 2022, compared to a net loss of RMB 5,548,806 thousand for the same period in 2021, representing an increase in loss of approximately 141%[4]. - The operating loss for the first half of 2022 was RMB 9,108,150 thousand, compared to an operating loss of RMB 4,672,086 thousand in the first half of 2021, reflecting a deterioration of about 95.5%[4]. - The company reported a gross loss of RMB 229,574 thousand for the first half of 2022, compared to a gross profit of RMB 556,884 thousand in the same period of 2021[3]. - The basic and diluted loss per share for the first half of 2022 was RMB 123.221, compared to RMB 58.810 for the same period in 2021, indicating an increase of approximately 109.5%[5]. - The group reported a loss of RMB 13.4 billion for the six months ended June 30, 2022[15]. - Cumulative losses and net current liabilities as of June 30, 2022, were RMB 84.6 billion and RMB 70.6 billion, respectively[15]. - The group reported income tax expenses of RMB 1,537,200 thousand for the six months ended June 30, 2022, compared to RMB 118,575 thousand in the previous year, showing a substantial increase in tax liabilities[20]. - The basic loss per share for the six months ended June 30, 2022, was RMB (123.221), compared to RMB (58.810) for the same period in 2021, indicating a significant decline in performance[27]. Revenue and Growth - Total revenue for the six months ended June 30, 2022, was RMB 1,509,833 thousand, up from RMB 817,351 thousand in the same period of 2021, indicating an increase of approximately 84.5%[3]. - Revenue from health management, including wellness space sales, reached RMB 1,485,727 thousand, significantly up from RMB 780,367 thousand in the previous year, indicating a growth of about 90.1%[18]. - The revenue from the new energy vehicle segment decreased by 34.81% to RMB 24.11 million, primarily due to the ongoing upgrade of new battery products and the clearance of existing battery inventory[41]. - The group's revenue for the six months ended June 30, 2022, was RMB 1,509.83 million, representing an increase of 84.72% compared to RMB 817.35 million for the same period in 2021[40]. - The revenue from the health management segment increased by 90.39% to RMB 1,485.73 million, driven by sales from wellness space projects rising from RMB 759.30 million to RMB 1,377.89 million[40]. Assets and Liabilities - The company's total assets decreased to RMB 130,846,805 thousand as of June 30, 2022, from RMB 143,569,374 thousand as of December 31, 2021, a decline of approximately 8.9%[7]. - The total liabilities increased to RMB 184,466,206 thousand as of June 30, 2022, from RMB 182,908,356 thousand as of December 31, 2021, an increase of approximately 0.8%[7]. - The company’s cash and cash equivalents decreased to RMB 1,609,415 thousand as of June 30, 2022, from RMB 2,452,523 thousand as of December 31, 2021, a decline of about 34.3%[6]. - The group’s total liabilities as of June 30, 2022, amounted to RMB 184,466.21 million, with net liabilities (excluding advance payments) increasing by RMB 10,879.73 million from RMB 117,658.72 million as of December 31, 2021[37]. - As of June 30, 2022, the group faced overdue debts totaling approximately RMB 8.769 billion and overdue commercial bills of about RMB 17.936 billion[52]. Operational and Financial Strategies - The group is actively negotiating with banks and financial institutions to extend existing loans and bonds maturing within twelve months after June 30, 2022, as part of its financing plan[16]. - The group has implemented operational restructuring plans to control operational and administrative costs, including optimizing production and human resources[16]. - The group is focusing on generating operational cash flow and obtaining additional financing sources to meet existing financial obligations and future capital expenditures[16]. - The group has significant uncertainties regarding its ability to continue as a going concern, dependent on successful execution of its restructuring and financing plans[17]. - The company has taken various measures to improve liquidity and financial condition, including a debt resolution plan, although the effectiveness of these measures remains uncertain[32]. Corporate Governance and Compliance - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, compared to no dividend for the same period in 2021[55]. - The group’s interim financial information for the six months ended June 30, 2022, was reviewed by the audit committee, which consists of three independent non-executive directors[56]. - The company has complied with all provisions of the corporate governance code during the reporting period[57]. - The company has submitted information regarding the resumption of trading to the stock exchange and will provide further updates in due course[61]. - The company has not held an annual general meeting since June 18, 2021, and plans to hold one at an appropriate time[57].

Financial Performance - The total revenue for the year ended December 31, 2021, was RMB 2,531,219 thousand, a decrease from RMB 15,486,625 thousand in 2020, representing a decline of approximately 83.7%[2] - The net loss for the year was RMB 56,344,378 thousand, compared to a net loss of RMB 7,664,907 thousand in 2020, indicating an increase in losses of about 635.5%[3] - The gross loss for the reporting period was RMB 831.84 million, compared to a gross profit of RMB 2,790.30 million in 2020, resulting in a gross margin drop from 18.02% to -32.86%[43] - The company recorded an operating loss of RMB 16,902.30 million for the reporting period[44] - Non-operating losses totaled RMB 40,376.68 million, leading to a total loss of RMB 56,344.38 million for the reporting period, more than seven times the loss in 2020[45] - The company reported a net loss attributable to shareholders of RMB 7,394,075,000 for 2021, compared to a loss of RMB 7,394,075,000 in 2020, resulting in a basic loss per share of RMB (585.319) for 2021, compared to RMB (85.103) in 2020[21] Assets and Liabilities - The total assets as of December 31, 2021, amounted to RMB 143,569,374 thousand, down from RMB 150,064,740 thousand in 2020, reflecting a decrease of approximately 4.3%[5] - The company reported a significant increase in total liabilities, which rose to RMB 182,908,356 thousand in 2021 from RMB 155,903,262 thousand in 2020, an increase of about 17.3%[6] - The company’s equity attributable to owners was negative at RMB (39,291,901) thousand in 2021, compared to RMB (6,050,656) thousand in 2020, indicating a worsening financial position[6] - The total liabilities reported for 2021 amounted to RMB 182,908.36 million, with a net liability of RMB 117,658.72 million after excluding advance receipts, representing a decrease of RMB 14,779.67 million compared to 2020[39] - The asset-liability ratio as of December 31, 2021, was 29.03%, down from 48.65% as of December 31, 2020[54] Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to RMB 2,808,700 thousand in 2021 from RMB 3,668,420 thousand in 2020, a decline of approximately 23.4%[5] - Cash and cash equivalents stood at RMB 2.453 billion as of December 31, 2021, a significant decrease from RMB 10.476 billion in 2020[10] - Cash and cash equivalents were reported at RMB 2,452,523,000 as of December 31, 2021, against current liabilities of RMB 57,251,098,000, indicating liquidity challenges[28] - The company has taken measures to improve its liquidity and financial position, although the effectiveness of these measures remains uncertain[28] - The independent auditor's report expressed a disclaimer of opinion due to the inability to obtain sufficient appropriate audit evidence regarding the company's ability to continue as a going concern[27] Revenue Segments - Revenue from health management services decreased to RMB 2.388 billion in 2021 from RMB 15.268 billion in 2020[18] - Revenue from lithium battery sales was RMB 9.919 million in 2021, down from RMB 81.620 million in 2020[18] - The company has changed its revenue recognition policy to include additional conditions for recognizing income, effective from January 1, 2021[13] Operational Restructuring - The group plans to implement operational restructuring measures, including cost control and capital expenditure management, to alleviate liquidity pressure[10] - The health management segment was planned to be divested in August 2021 to concentrate resources on the new energy vehicle segment[38] - The company is focused on building a comprehensive health service platform, although it plans to shift its strategic focus away from this segment[38] Research and Development - The new energy vehicle segment has made significant progress, launching an intelligent vehicle operating system and an automatic parking system during the reporting period[37] - The company applied for a total of 3,227 patents in the new energy vehicle segment, with 1,793 patents granted, covering key areas such as electric chassis structure and battery management systems[37] - The company established R&D bases in Shenzhen and Shanghai, focusing on the development of lithium-ion batteries and next-generation battery technologies[37] Related Party Transactions - The company has engaged in related party transactions for real estate marketing services from January 1, 2021, to December 31, 2022[61] - The total service fee for real estate marketing services amounted to approximately RMB 454,207 thousand for the year ended December 31, 2021, and approximately RMB 6,928 thousand for the year ended December 31, 2022[63] - The company recognizes the benefits of engaging China Evergrande Group for real estate marketing services due to its extensive experience and resources[69] Compliance and Governance - The company is focused on ensuring compliance with regulatory requirements[83] - The company has committed to strengthening internal controls to prevent future non-compliance incidents[80] - The company will provide regular training to employees on regulatory and legal topics, including compliance with related party transaction regulations[81] Trading Status - The company's shares have been suspended from trading since April 1, 2022, until further notice[83] - The company has submitted information regarding the resumption of trading to the Stock Exchange[83]

Automotive Industry Performance - In the first half of 2021, China's automobile production and sales reached 12.569 million and 12.891 million units, respectively, representing year-on-year growth of 24.2% and 25.6%[14] - New energy vehicle (NEV) production and sales reached 1.215 million and 1.206 million units, respectively, with a year-on-year increase of 100%[14] - The penetration rate of NEVs increased from 5.4% at the beginning of the year to 9.4% in the first half, exceeding 12% in June 2021[14] - The global economic recovery and favorable policies have positively impacted the automotive industry, driving growth in NEV sales[14] Company Development and Strategy - The company has developed 14 vehicle models, with 9 already launched, and aims to expand its product matrix to meet diverse market demands[13] - The company launched the H-SMART OS intelligent network system in March 2021, developed in collaboration with Tencent and Baidu, featuring advanced smart technologies[15] - The company plans to enhance its R&D capabilities and strengthen its competitive edge in both software and hardware aspects of its products[14] - The company aims to leverage opportunities from the automotive industry's transformation to develop unique and competitive NEV products[14] Health Management Services - The company has established 30 "Evergrande Health Valley" locations nationwide, focusing on comprehensive health services[13] - The company is committed to integrating health management, medical care, rehabilitation, and insurance services into its business model[13] - The "Hengda Health Valley" service has served 450,000 members and clients nationwide, with a cumulative service of 1.73 million visits as of June 30, 2021[19] - The company has established a multi-level health management model, integrating home care services and active elderly apartments to provide diverse elderly care solutions[20] Financial Performance - The group's revenue for the six months ended June 30, 2021, was RMB 6,923.24 million, a 53.5% increase compared to RMB 4,510.32 million in the same period of 2020[28] - The health management segment's revenue increased from RMB 4,446.01 million in 2020 to RMB 6,865.19 million in the reporting period, representing a growth of 54.4%[28] - The revenue from the new energy vehicle segment decreased by 30.22%, from RMB 53.00 million in 2020 to RMB 36.98 million in the reporting period, primarily due to reduced battery sales[28] - The group's gross profit for the reporting period was RMB 247.28 million, down 80.41% from RMB 1,262.35 million in 2020, with the gross margin dropping from 27.99% to 3.57%[28] Losses and Financial Challenges - The net loss for the reporting period was RMB 4,821.63 million, an increase of 96.25% compared to a loss of RMB 2,456.91 million in 2020, mainly due to reduced gross profit from health management[29] - The group is facing liquidity challenges, with delays in payments to suppliers and contractors, potentially impacting project timelines and cash flow[35] - If the company fails to secure necessary financing or implement its measures, liquidity issues may worsen, leading to loan defaults and significant adverse impacts[35] Research and Development - The company has applied for a total of 3,566 patents globally, with 1,827 patents granted, covering key areas such as electric vehicle chassis, battery management systems, and autonomous driving technologies[16] - The company has developed core technologies in the new energy vehicle industry chain, focusing on self-developed power battery technology and powertrain technology[18] - The company has multiple research and testing laboratories for battery materials, electrolyte development, and thermal management, enhancing its technological capabilities[18] Shareholder and Equity Information - As of June 30, 2021, Liu Yongzhuo holds 21,653,500 shares, representing 0.22% of the company's equity[39] - China Evergrande Group is the intermediate holding company of the company, holding 6,347,948,000 shares, which accounts for 64.98% of the total[45] - The company raised approximately HKD 26 billion from the issuance of 952,383,000 shares at a subscription price of HKD 27.30 per share[48] Cash Flow and Financing - The company raised RMB 21,803,012 thousand through private placement of ordinary shares during the reporting period[55] - The company experienced a significant increase in financing cash flow, with net cash from financing activities amounting to RMB 549,667 thousand for the first half of 2021[58] - The company is actively pursuing potential investors and asset sales to alleviate liquidity problems and reduce debt[35] Market and Economic Conditions - The company anticipates a gradual recovery in business transaction volume as COVID-19 restrictions ease in mainland China[60] - 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[67] Operational and Asset Management - The company has established manufacturing bases in Tianjin, Shanghai, and Guangzhou, and has commenced trial production of new vehicle models[17] - The company is building experience centers, sales centers, and after-sales service centers in major cities to create an online and offline transaction ecosystem[17] - The company reported a total non-current asset value of RMB 53,101,860 thousand as of June 30, 2021, compared to RMB 46,534,879 thousand at the end of 2020, reflecting an increase of approximately 14.5%[84]