China Evergrande's EV arm warns of bigger first-half loss on impairment provisions (updated)

China Evergrande New Energy Vehicle

27/08/2024 16:47

(Updates with details and background)
       Aug 27 (Reuters) - The electric vehicle unit of
embattled real estate developer China Evergrande  3333.HK  said
on Tuesday it expected to report a bigger loss for the first
half of 2024, reflecting an increase in provision for
impairments.
    China Evergrande New Energy Vehicle  0708.HK  estimated a
consolidated net loss of about 20.25 billion yuan ($2.84
billion) for the six months ended June 30, compared with 6.87
billion yuan in the same period a year earlier.
    The EV unit, which is in talks with a potential buyer to
take a stake in the company, signaled an impairment provision of
around 16.74 billion yuan for the half year. 
    "The company has increased the provision for impairment loss
on receivables from the subsidiaries, associates, and joint
ventures of China Evergrande," the electric vehicle maker said.
    A Hong Kong court in January had ordered the liquidation of
property giant China Evergrande Group.
    China Evergrande New Energy is scheduled to report its
half-year earnings on Aug. 30.
    The EV maker had produced only 1,700 of its Hengchi EVs as
of the end of 2023. Its Tianjin factory has suspended production
since the start of this year.
    

($1 = 7.1237 Chinese yuan renminbi)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by
Sriraj Kalluvila)
 ((Aaditya.GovindRao@thomsonreuters.com;))