Evergrande Health (HKSE: 0708), the electric vehicle (EV) unit of Chinese conglomerate Evergrande, has announced that its first EV model, the Hengchi 1, will debut in the first half of 2020, while mass production will start in 2021, the company informed in its 2019 annual report, released today.
The firm, which initially focused on care homes and hospitals before specializing in EVs, saw its total losses almost increasing three times from last year, at RMB 4.9 billion (USD 690.3 million).
However, the company ensured that its new energy vehicle business is progressing steadily in line with the planned goals, adding that it has 14 new models under the Hengchi series in the pipeline, aiming for mass production in the next few years.
Evergrande Health also said the construction of two production bases in Guangdong and Shanghai will be completed in the second half of 2020 and will start producing vehicles in 2021, with a planned production capacity of 200,000 vehicles.
The company booked revenues of RMB 660 million (USD 93 million) for its NEV business, but saw losses of RMB 3.3 billion in this sector, almost twice than in 2018, at RMB 1.7 billion.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.