The electric vehicle business of Chinese real estate developer Evergrande Group has tallied 4.9 billion yuan ($690 million) in losses since its inception in 2018.
The unit incurred a loss of up to 3.2 billion yuan in 2019 after losing 1.7 billion in 2018, according to Evergrande Health Industry Group estimates.
Evergrande Health, a Hong Kong-listed health care provider, runs the EV business for parent company Evergrande Group.
The red ink reflects “an increase in fees related to the purchase of fixed assets and equipment, research and development and interest expenses,” Evergrande Health said Sunday.
Evergrande Group has made major inroads in the EV industry through a slew of acquisitions.
In 2019, it acquired several European companies: National Electric Vehicle Sweden, a Swedish company that bought assets of bankrupt Saab Automobile in 2012 to build EVs on the Saab 9-3 platform; U.K. electric motor maker Protean Holdings Corp.; and Dutch electric motor manufacturer e-Traction. It also acquired Shanghai-based EV battery supplier CENAT New Energy Co.
Last year, it signed up five global automotive engineering companies to develop 15 EV models, including full-size and midsize vehicles. The five companies are Germany’s FEV Group, EDAG Engineering Group and IAV Group, Austria's AVL Group and Canada’s Magna International.
Evergrande Group plans to build two major EV plants in the south city of Guangzhou and northeast city of Shenyang, and expects to unveil the first EV model sometime this year.