China Evergrande New Energy Vehicle Group Limited (“EVERG VEHICLE”) released its unaudited interim results for the six months ended 30 June 2026.
Financial Snapshot • Revenue rose 34.07% year on year to RMB8.73 million, attributable entirely to the inaugural sales from its lithium-ion Battery Trading Business; no vehicle manufacturing income was recorded. • Gross profit stood at RMB0.52 million, down 70.03% from RMB1.74 million a year earlier, reflecting a 5.98% gross margin on battery trading. • Net profit reached RMB185.72 million, marking a RMB771 million turnaround from the RMB585.32 million loss in H1 2025. The swing was driven mainly by RMB554.57 million in foreign-exchange gains and a 40.69% reduction in administrative expenses to RMB23.55 million. • Finance costs remained heavy at RMB345.82 million, though 32.05% lower year on year.
Balance-Sheet Position (30 June 2026) • Total assets: RMB0.18 billion. • Total liabilities: RMB32.72 billion, including borrowings of RMB16.28 billion and trade & other payables of RMB16.44 billion. • Shareholders’ deficit: RMB32.54 billion; accumulated losses total RMB105.28 billion. • Cash and cash equivalents: RMB0.21 million, underscoring acute liquidity pressure.
Operational and Strategic Developments • Complete exit from vehicle manufacturing; PRC production facilities either disposed of or in insolvency proceedings. • Business now centred on two asset-light segments: 1) Technical Services Business run by Swedish subsidiary NEVS, serving European auto and battery clients. 2) Battery Trading Business, which posted its first sales during the period and targets RMB60 million in revenue over its first 12-month cycle. • Intangible assets of RMB173.52 million—mainly EV battery and manufacturing technologies—support both segments.
Going-Concern and Financing Measures • Directors cite “material uncertainties” over going-concern status due to negative equity and minimal cash. • Mitigation plans include cost containment, expansion of the new businesses, negotiations with an independent investor for working-capital funding, and a holistic debt restructuring with China Evergrande Group (In Liquidation), the primary creditor. • No creditor has demanded immediate repayment; liquidators of China Evergrande have no current intention to commence winding-up proceedings against EVERG VEHICLE.
Other Information • Staff headcount reduced to seven, with H1 staff costs of RMB1.40 million. • No interim dividend declared. • No material litigation or contingent liabilities reported. • Trading in EVERG VEHICLE shares has been suspended since 1 April 2025; management is working to meet Hong Kong Stock Exchange resumption requirements, including demonstrating compliance with Listing Rule 13.24.
The company’s transformation strategy delivered an interim profit despite a heavily leveraged balance sheet; however, sustained viability hinges on executing the asset-light model, securing external funding, and achieving successful debt restructuring within the next 12 months.
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