China Evergrande New Energy Vehicle Group Limited (Evergrande NEV, HKEX: 00708) reported a consolidated net loss of RMB891.14 million for the year ended 31 December 2025, reversing the prior year’s RMB6.27 billion profit that had been inflated by one-off gains on subsidiary disposals.
Revenue and Profitability • Revenue fell 75.6 % year-on-year to RMB13.01 million, reflecting a full-year suspension of vehicle manufacturing and the absence of property sales. • Gross profit declined 44.5 % to RMB3.54 million. • Other gains of RMB231.21 million, largely foreign-exchange related, and sharply lower selling and administrative expenses (down 92 % to RMB72.82 million) were offset by finance costs of RMB1.02 billion, driving the bottom-line loss. • Basic and diluted loss per share amounted to RMB8.22 cents, versus earnings of RMB57.81 cents in 2024.
Balance-Sheet Stress • Total assets stood at RMB205 million, dwarfed by total liabilities of RMB32.92 billion, producing a shareholder deficit of RMB32.71 billion. • Borrowings totalled RMB16.84 billion, unchanged in cost at an average interest rate of 5.90 %. • Cash and cash equivalents were just RMB0.21 million, while the gearing ratio surged to 8,228.12 %. • Substantially all borrowings and a significant portion of trade and other payables (RMB16.08 billion) are owed to China Evergrande Group (In Liquidation) and its affiliates.
Strategic Shift and Operating Snapshot • Vehicle production remained halted throughout 2025; the Tianjin manufacturing unit entered bankruptcy liquidation in November. The Group has now “substantively completed” its exit from vehicle manufacturing. • Ongoing revenue stems almost entirely from technical services provided by Swedish subsidiary National Electric Vehicle Sweden AB (NEVS) to European automotive and battery clients, generating RMB12.87 million in 2025. • Management is developing an asset-light lithium-ion battery trading arm targeting RMB60 million in sales during its first twelve months of operation, with initial orders planned for 4Q 2026.
Liquidity and Going-Concern Uncertainties • The auditor issued an unmodified opinion with a material-uncertainty paragraph on going concern, citing minimal cash, significant net liabilities and large short-term obligations. • Continuation hinges on: (1) execution of the new business model, (2) securing external financing from an unnamed investor, and (3) reaching a comprehensive debt restructuring with Evergrande Group’s liquidators. No demands for immediate repayment or winding-up petitions have been received to date.
Corporate and Capital Matters • No dividends were proposed for 2025. • The workforce shrank to 12 employees, cutting staff costs to RMB8.20 million. • Trading in Evergrande NEV shares has been suspended since 1 April 2025 pending publication of financial results and fulfillment of Hong Kong Stock Exchange resumption conditions. Management continues to pursue these requirements alongside debt-restructuring talks.
Outlook Management plans to scale the European technical services operation and launch the battery trading initiative while negotiating debt relief. The company’s ability to secure fresh funding and complete restructuring will be pivotal to resolving its liquidity constraints and restoring trading of its shares. Shareholders are advised that significant uncertainties remain.
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