Recently, Evergrande Automobile, which was almost forgotten by the market, has returned to the public eye through the disclosure of the 2026 interim financial report by the Hong Kong Stock Exchange.
The financial report shows that as of June 30 this year, the company’s total assets were approximately 182 million yuan, but its total liabilities reached nearly 32.722 billion yuan. Among the liabilities, borrowings are approximately 16.283 billion yuan, and trade and other payables are approximately 16.439 billion yuan. At the same time, during the reporting period, the group achieved revenue of 9 million yuan and gross profit of 500,000 yuan; it recorded a net profit of 186 million yuan, an increase of 771 million yuan compared with the same period last year.
It is worth noting that Evergrande Automobile has completely ended its automobile manufacturing-related business. According to the announcement, the company will no longer engage in the production and manufacturing of complete vehicles. It will rely on the remaining batteries and patented technologies related to vehicle manufacturing to reorganize its business and use lithium-ion battery trade as its core new track.
During the reporting period, the battery trading business has begun external sales, achieving revenue of 8.73 million yuan, with a gross profit margin of approximately 5.98%, which is within the target range of 5% to 8% set by the company, and has become the main source of income for Evergrande Automobile at this stage.
The foundation of this new business is actually the technology wealth that Evergrande Automobile accumulated through “buy, buy, buy” in its early years. In 2019, Evergrande Automobile spent 1.06 billion yuan to acquire Canai New Energy, which brought the ternary soft-pack technology of Japan’s “Father of Lithium Battery” team. Later, through the acquisition of National Electric Vehicle Sweden Co., Ltd. (NEVS), it inherited Saab’s battery cooling and other patents, and accumulated thousands of battery-related patents. Today, its domestic factories are sold out or bankrupt, leaving only the Hong Kong headquarters and NEVS relying on an asset-light model to maintain it.
In the past, these technologies were originally used to support the mass production of complete vehicles, but now its vehicle business has pressed the pause button. These battery technology accumulation accumulated over many years have become the most direct starting point for new businesses and the last resort of Evergrande Automobile.
However, unlike the buying and selling of ordinary battery cell middlemen, Evergrande Automobile’s battery trading business follows an asset-light technology supporting route. It does not build its own battery cell factory, nor does it hoard goods to occupy funds. Instead, it targets small and medium-sized customers in the fields of electric two-wheelers, energy storage and small home appliances in Europe and Southeast Asia. It purchases products of corresponding specifications from mainstream domestic battery cell manufacturers. Relying on its own battery patent technology capabilities, it simultaneously provides value-added services such as battery quality classification screening, UN38.3 dangerous goods transportation certification, and MSDS compliance document issuance, so as to achieve a higher gross profit margin than ordinary traders.
Looking back on the business path of the past two years, Evergrande Automobile’s battery-related layout is not going very fast. In 2024, the company mainly relies on NEVS to export battery engineering and technical services to European customers. The annual revenue of this segment is approximately 25.37 million yuan, and battery trade is still in the planning stage.
In 2025, Evergrande Automobile’s technical service revenue will drop year-on-year to approximately 12.87 million yuan. The battery trading business has entered a complete preparatory stage, and the operating rules of order-driven and full cash settlement for new customers have been finalized. Procurement actions are fully synchronized with confirmed customer orders, minimizing inventory risks.
It was not until the first half of 2026 that this long-prepared business was officially delivered to the outside world, realizing the first revenue of 8.73 million yuan.
At the time of business transformation, Evergrande Automobile has also taken cost-cutting measures simultaneously, including adjusting its organizational structure and staffing, and compressing various operating expenses. The company hopes to reduce the pressure on continued operations by reducing asset-heavy manufacturing operations.
At present, Evergrande Automobile is still suspended from trading, and the deadline for resumption of trading given by the Hong Kong Stock Exchange is on the 30th of this month. On the one hand, it is negotiating with intended independent investors for small financing to cover basic operating expenses such as intermediaries and compliance. On the other hand, it is also communicating with the liquidation team of parent company China Evergrande on the overall debt restructuring plan. The liquidator has stated that it will not initiate liquidation proceedings against Evergrande Auto at this stage.
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