Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for thecontents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any
liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of thisannouncement.

CHINA EVERGRANDE NEW ENERGY VEHICLE GROUP LIMITED
中 國恒大 新能源 汽車集 團有限公 司(a company incorporated in Hong Kong with limited liability)(Stock Code: 708)

ANNOUNCEMENT OF ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ANNUAL RESULTS
The board (the ‘‘Board’’) of directors (the ‘‘Directors’’) of China Evergrande New Energy Vehicle
Group Limited is pleased to present the audited annual results of the Company and its subsidiaries forthe year ended 31 December 2022 together with comparative figures stated in this announcement forreference.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2022

Note

Continuing operations
Revenue
Cost of sales

3

Gross loss
Other income (expense), net
Other losses, net
Selling and marketing costs
Administrative expenses
Net impairment losses on financial assets–1–

31 December
2022
RMB’000

31 December
2021
RMB’000(Re-stated)

134,011(227,869)

74,986(245,826)(93,858)
274,837(1,178,928)(196,126)(2,616,661)(79,688)(170,840)(815,756)(1,528,651)(1,285,670)(7,795,265)(1,695,221)

31 December
2022
RMB’000

31 December
2021
RMB’000(Re-stated)(8,251,044)(11,399,078)—(154,508)

Operating loss

(12,141,468)(24,844,989)

Finance income
Finance costs

8,112(1,230,922)

21,649(1,810,026)

Finance costs, net(1,222,810)(1,788,377)

Fair value losses on financial assets at fair value
through profit or loss

(2,419,707)(1,382,383)

Loss before income tax(15,783,985)(28,015,749)

931,048725,560

Loss for the year from continuing operations(14,852,937)(27,290,189)

Discontinuing operation held for sale
Loss for the year from discontinuing operation
held for sale

(12,810,772)(29,054,189)

Loss for the year

(27,663,709)(56,344,378)

Other comprehensive income:Items that may be reclassified to profit and loss:
Currency translation differences(2,139,588)(236,880)(2,139,588)(236,880)(29,803,297)(56,581,258)

Note

Net impairment losses on property, plant andequipment, intangible assets and goodwill
Net impairment losses on properties underdevelopment, completed properties
held for sale and inventories

Income tax credit

4

Total comprehensive loss for the year–2–

31 December
2022
RMB’000

31 December
2021
RMB’000(Re-stated)(14,849,590)(12,810,772)(27,346,778)(28,927,762)(27,660,362)(56,274,540)(3,347)—56,589(126,427)(3,347)(69,838)(29,799,950)(3,347)(56,511,420)(69,838)(29,803,297)(56,581,258)5(255.080)(585.319)— Diluted loss per share5(255.080)(585.319)

Loss per share from continuing operations(expressed in RMB cents per share)— Basic loss per share

5(136.941)(284.438)— Diluted loss per share

5(136.941)(284.438)

Note

Loss for the year attribute to owners of theCompany— From continuing operations— From discontinuing operation held for sale

(Loss)/profit for the year attributable tonon-controlling interest— From continuing operations— From discontinuing operation held for sale

Total comprehensive expense attributable to:— Owners of the Company— Non-controlling interests

Loss per share from continuing operations anddiscontinuing operation held for sale
(expressed in RMB cents per share)— Basic loss per share–3–Consolidated Balance Sheet
As at 31 December 2022
31 December
2022
RMB’000

31 December
2021
RMB’000(Re-stated)

14,536,900
2,921,112—
4,477,860
192,426—
259,321
8,956

20,988,979
3,910,322
614,670
6,524,103
774,557
258,475
501,493
151,035

22,396,575

33,723,634—
4,598,222
54,4772,449,924—
521,892
134,300
19,390219,941

796,086
18,812,867
2,570,889
73,355,683
6,593,100
200,496
2,255,396
2,808,700
2,452,523

7,998,146

109,845,740

Assets of discontinuing operation classified
as held for sale

84,826,534—

Total currents assets

92,824,680

109,845,740

Total assets

115,221,255

143,569,374

Note

ASSETS
Non-current assets
Property, plant and equipment
Right-of-use assets
Investment properties
Intangible assets
Prepayments
Investments accounted for using the equity method
Financial assets at fair value through profit or loss
Deferred income tax assets

Current assets
Contract acquisition costs
Trade and other receivables and prepaid taxes
Prepayments
Properties under development
Completed properties held for sale
Inventories
Financial assets at fair value through profit or loss
Restricted cash
Cash and cash equivalents–4–6

31 December
2022
RMB’000

31 December
2021
RMB’000(Re-stated)

28,124,101
2,181,456(98,906,331)

28,124,101
3,825,320(71,241,322)(68,600,774)(39,291,901)(50,088)(47,081)

Total deficit(68,650,862)(39,338,982)

LIABILITIES
Non-current liabilities
Lease liabilities
Deferred income
Borrowings
Deferred income tax liabilities

283,823
2,781,150
12,312,127
56,364

694,914
2,821,150
11,271,059
1,024,395

15,433,464

15,811,518

3,313,647
339,261
30,796,181
13,673,042
1,314,239

65,249,638
318,818
71,741,863
29,393,849
392,670

119,002,283—

168,438,653

167,096,838

Total liabilities

183,872,117

182,908,356

Total deficit and liabilities

115,221,255

143,569,374

Note

EQUITY
Equity attributable to owners of the Company
Share capital and share premium
Reserves
Accumulated losses

Non-controlling interests

Current liabilities
Contract liabilities
Lease liabilities
Trade and other payables
Borrowings
Current income tax liabilities
Liabilities of discontinuing operation classified asheld for sale

–5–

7

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1

GENERAL INFORMATION
China Evergrande New Energy Vehicle Group Limited (the ‘‘Company’’) and its subsidiaries (together, the ‘‘Group’’)are engaged in technology research and development, production and sales of new energy vehicles in the People’s
Republic of China (the ‘‘PRC’’) and in other countries (collectively, the ‘‘New Energy Vehicle Segment’’), as well as
the ‘‘Internet+’’ community health management, international hospitals, and elderly care and rehabilitation(collectively, the ‘‘Health Management Segment’’) in the PRC.
The Company is incorporated in Hong Kong as a limited liability company under the Hong Kong Companies
Ordinance. The address of its registered office is 15th Floor, YF Life Centre, 38 Gloucester Road, Wan Chai, HongKong.
The Company’s shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited.
These consolidated financial statements are presented in Renminbi (‘‘RMB’’) thousands, unless otherwise stated.
The Company will deliver the consolidated financial statements for the year ended 31 December 2022 to the Registrarof Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance(Cap. 622).
The Company’s auditor reported on these financial statements. In the auditor’s report, the independent auditor
expressed a disclaimer of opinion. In the auditor’s report, it did not include a reference to any matters to which theauditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections
406(2), 407(2) or (3) of the Companies Ordinance.

2

BASIS OF PREPARATION
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
(i)Compliance with Hong Kong Financial Reporting Standards (‘‘HKFRSs’’) and Hong Kong Companies
Ordinance (Cap. 622) (‘‘HKCO’’)The consolidated financial statements of the Group have been prepared in accordance with HKFRSs andrequirements of the HKCO.

(ii)

Historical cost convention
The consolidated financial statements have been prepared on a historical cost basis, except for certain investment
properties and financial assets at fair value through profit or loss which are measured at fair value, and assets
held for sale which are measured at the lower of carrying amount and fair value less costs to sell.

–6–

(iii) Liquidity and going concern
The Group incurred loss of RMB27,664 million (2021: RMB56,344 million) for the year ended 31 December
2022. As at 31 December 2022, the accumulated losses and the shareholders’ deficit of the Group amounted to
RMB98,906 million (2021: RMB71,241 million) and RMB68,651 million (2021: RMB39,339 million),
respectively. Cash and cash equivalents as at 31 December 2022 were RMB220 million (2021: RMB2,453
million).
The above matters indicated that the Group will need to secure a substantial amount of funds in the foreseeable
future to finance these financial obligations and capital expenditures under various contractual and otherarrangements.
Should the Group be unable to continue as a going concern, adjustments would have to be made to write-down
the value of assets to their recoverable amounts, to provide for any further liabilities which might arise and toreclassify non-current assets and liabilities as current assets and liabilities respectively. The effect to theseadjustments has not been reflected in the consolidated financial statements.
The above conditions indicate the existence of material uncertainties which may cast significant doubt about theGroup’s ability to continue as a going concern. In view of such circumstances, the Directors have given carefulconsideration to the future liquidity and performance of the Group and its available sources of financing inassessing whether the Group will have sufficient financial resources to continue as a going concern. Certain
plans and measures have been taken to mitigate the liquidity pressure and to improve the Group’s financial
position which include, but are not limited to, the following:(i)

The Group continues to take active plans and measures to control operation and administrative costs
through various channels, including but not limited to (i) having production and human resources
optimisation and adjustments, (ii) reorganising the structure to each segment and maintaining close
communication with suppliers, customers and banks, etc. (iii) committing to soliciting for new customers
and exploring overseas markets to support the sustainable development of principle business of the Group;and (iv) containment of capital expenditures etc. (the ‘‘Business and Operation Restructuring Plan’’);
and

(ii)

The Group is still actively in the process of negotiating with various bank, other financial institutions, third
parties and related parties to renew its existing borrowings and corporate bonds which will be matured
within twelve months after 31 December 2022 and to raise short-term and/or long-term financing to theGroup so that the Group will be able to meet all financial obligations as and when they fall due in the
coming twelve months from 31 December 2022 (the ‘‘Financing Plan’’).

The Directors have reviewed the Group’s cash flow projections prepared by the management of the Company.
The cash flow projections cover a period of not less than twelve months from 31 December 2022. They are of
the opinion that, taking into account the abovementioned plans and measures, the Group will have sufficientworking capital to finance its operations and to meet its financial obligations as and when they fall due withintwelve months from 31 December 2022. Accordingly, the Directors are satisfied that it is appropriate to prepare
the consolidated financial statements on a going concern basis.

–7–

Notwithstanding the above, significant uncertainties exist as to whether the management of the Company will beable to achieve its plans and measures as described above. Whether the Group will be able to continue as a going
concern would depend upon the Group’s ability to generate adequate financing and operating cash flows throughthe following:(i)

Successful execution and completion of the Business and Operation Restructuring Plan;(ii)

Successful execution and completion of the Financing Plan; and(iii) Successful generation of operating cash flows and in obtaining of additional sources of financing to financethe settlement of its existing financial obligations, commitments and future operating and capital
expenditure, as well as to maintain sufficient cash flows of the Group’s operations.
Should the Group fail to achieve the abovementioned plans and measures, it might not be able to continue
operate as a going concern, and adjustments would have to be made to write down the carrying values of theGroup’s assets to their recoverable amounts, to provide for any further liabilities which might arise, and toreclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The
effects of these adjustments have not been reflected in these consolidated financial statements.
3

REVENUE
Revenue represents the net amounts received and receivable from customers during the year. An analysis of theGroup’s revenue by type for the year is as follows:

Continuing operations
Sales of lithium batteries (i)Provision of technical services (ii)
Sales of vehicles and vehicle components (i)OtherDiscontinuing operation held for sale
Sales of health and living projects (i)Income from medical cosmetology and health management (ii)
Rental income

(i)

2022
RMB’000

2021
RMB’000(Re-stated)

9,613
40,916
60,62722,855

9,919
60,7091,748
2,610

134,01174,986

3,675,956
12,576247

2,388,362
61,155
6,716

3,688,779

2,456,233

3,822,790

2,531,219

Revenue generated from the sales of health and living projects, lithium batteries, vehicles and vehicle
components are recognised at the point in time when control of the asset is transferred to the customer, generally
on delivery of the assets.

(iii) Revenue generated from medical cosmetology and health management and provision of technical services arerecognised over the period of the contract by reference to the progress towards complete satisfaction of that
performance obligation.

–8–

4

INCOME TAX CREDIT
The amount of income tax credited to the consolidated statements of comprehensive income represents:

Current income tax:
PRC corporate income tax
PRC land appreciation tax

Deferred income tax:
PRC corporate income tax

5

2022
RMB’000

2021
RMB’000(Re-stated)

63,500(54,702)

381
—

8,798

381

(939,846)(725,941)(931,048)(725,560)

LOSS PER SHARE
(a)

Basic
Basic loss per share are calculated by dividing the loss attributable to shareholders of the Company by theweighted average number of ordinary shares in issue during the year.
2022

2021

Loss attributable to shareholders of the Company (RMB’000)— From continuing operations— From discontinuing operation held for sale

(14,849,590)(12,810,772)(27,346,778)(28,927,762)

Weighted average number of ordinary shares for the purpose of basic loss
per share (thousands)

10,843,793

9,614,331(136.941)(118.139)(284.438)(300.881)(255.080)(585.319)

Basic loss per share (RMB cents per share)— From continuing operations— From discontinuing operation held for sale

–9–

(b)

DilutedThe share options granted by the Company have potential dilutive effect on the loss per share. Diluted loss per
share is calculated by adjusting the weighted average number of ordinary shares in issue less shares held for theshare option scheme outstanding by the assumption of the conversion of all potential dilutive ordinary sharesarising from share options granted by the Company (collectively forming the denominator for computing thediluted loss per share). No adjustment is made to loss (numerator).
2022

2021

Loss attributable to shareholders of the Company (RMB’000)— From continuing operations— From discontinuing operation held for sale

(14,849,590)(12,810,772)(27,346,778)(28,927,762)

Weighted average number of ordinary shares for the purpose of basic loss
per share (thousands)
Adjustments for share options

10,843,793—

9,614,331—

Weighted average number of ordinary shares for diluted loss per share(thousands)

10,843,793

9,614,331(136.941)(118.139)(284.438)(300.881)(255.080)(585.319)

Diluted loss per share (RMB cents per share)— From continuing operations— From discontinuing operation held for sale

6

TRADE RECEIVABLES
Trade receivables mainly arose from sale of vehicles and vehicle components. Proceeds in respect of sales of vehicles
and vehicle components are to be received in accordance with the terms of the related sales and purchase agreements.
The ageing analysis of trade receivables based on the revenue recognition date as at the respective balance sheet dates
is as follows:

Within 90 days
91 days and within 180 days
181 days and within 365 days
Over 365 days

– 10 –

2022
RMB’000

2021
RMB’000

60,0782,116
4,825
35,75939,26076,38050,493
109,498

102,778

275,631

7

TRADE PAYABLES
The Group normally receives credit terms of 60 days to 90 days from its suppliers. The following is an ageing analysisof trade payables based on the invoice date at the balance sheet date:

0–90 days
91–180 days
Over 180 days

– 11 –

2022
RMB’000

2021
RMB’000

4,672,682
628,405
5,225,828

13,124,375
6,363,128
22,164,389

10,526,915

41,651,892

EXTRACT OF INDEPENDENT AUDITOR’S REPORTThe following is the extract of the independent auditor’s report from the external auditor of theCompany:
Disclaimer of Opinion
We were engaged to audit the consolidated financial statements of the Group, which comprise theconsolidated statement of financial position as at 31 December 2022 and the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and theconsolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
We do not express an opinion on the consolidated financial statements of the Group. Because of thesignificance of the matter described in the Basis for Disclaimer of Opinion paragraph, we have not beenable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these
consolidated financial statements. In all other respects, in our opinion the consolidated financial
statements have been properly prepared in compliance with the disclosure requirements of the Hong
Kong Companies Ordinance.
Basis for Disclaimer of Opinion
1.

Material uncertainties relating to going concern
As described in note 2 to the consolidated financial statements, the Group incurred a net loss ofapproximately RMB27,663,709,000 for the year ended 31 December 2022 and had net current
liabilities of RMB75,613,973,000 as at 31 December 2022 and the Group’s cash and cash
equivalents amounted to RMB219,941,000 only. These conditions, along with other matters as
described in note 2 to the consolidated financial statements, indicate the existence of material
uncertainties which may cast significant doubt about the Group’s ability to continue as a going
concern and therefore it may be unable to realise its assets and discharge its liabilities in thenormal course of business.
The directors have taken measures to improve the Group’s liquidity and financial position as
described in note 2 to the consolidated financial statements. The consolidated financial statements
have been prepared on a going concern basis, the validity of which depends on the outcome ofthese measures, which are subject to material uncertainties. We are unable to determine whether
the use of the going concern assumption in the preparation of the consolidated financial statements
is appropriate.
Should the going concern assumption be inappropriate, adjustments would have to be made toreclassify all non-current assets and liabilities as current assets and liabilities, to write down thevalues of assets to their recoverable amounts and to provide for any further liabilities which may
arise. The consolidated financial statements do not include any such adjustments. However,material uncertainties exist in relation to the Group’s ability to continue as a going concern in view– 12 –

of the Group’s future cash flow. We consider that appropriate disclosures have been made in the
consolidated financial statements concerning this situation but we have not obtained sufficientappropriate audit evidence regarding the Group’s ability to meet its financial obligations as andwhen they fall due and we consider the potential cumulative effect on the consolidated financial
statements of this material uncertainty relating to going concern to be so significant that we havedisclaimed our opinion.
2.

Insufficient appropriate audit evidence in respect of Opening balances and comparative
information
The consolidated financial statements for the year ended 31 December 2021 (the basis of thecomparative amounts presented in the consolidated financial statements for the year ended 31
December 2022) expressed a disclaimer of opinion on the Group’s results and cash flows due tostaff departure of the Group and our inability to obtain sufficient appropriate audit evidence inrespect of changes in accounting policies which formed the basis for the disclaimer of opinion on
the consolidated financial statements for the year ended 31 December 2021 but the scope
limitations no longer affect the current year figures in the consolidated financial statements for theyear ended 31 December 2022. However, the comparative figures presented in the consolidated
statement of profit or loss and other comprehensive income, consolidated statement of changes inequity and consolidated statement of cash flows may contain material misstatements and therefore
may not be comparable with the current year figures.
Due to the lack of sufficient financial information as aforementioned, we are unable to satisfy
ourselves that proper books of accounts have been kept so as to give a true and fair view of thestate of the Group’s affairs and present the consolidated financial statements in accordance with
Hong Kong Financial Reporting Standards, the disclosure requirements of the Hong Kong
Companies Ordinance and the Rules Governing the Listing of Securities on The Stock Exchange ofHong Kong Limited. Owing to the significance and pervasiveness of the matters, we have not beenable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the
consolidated financial statements. Accordingly, we disclaim our opinion on the accompanying
consolidated financial statements of the Group for the year ended 31 December 2021.

– 13 –

Material matters relating to the audit of the Group’s consolidated financial statements and therelevant audit procedure
In its resignation letter, PricewaterhouseCoopers noted that it had not received information on certain
material matters relating to the audit of the Group’s consolidated financial statements. The following
are the relevant audit procedure performed by the independent auditors to address these material
matters by the independent auditors:
Material matters relating to the audit of theGroup’s consolidated financial statements
Audit procedure
1. Its request to the Company’s audit committee to The independent auditors have reviewed theestablish an independent investigation committee independent investigation report (the ‘‘Report’’)and to engage an independent third party to conducted by Crowe LLP on the possible
assist in investigating the possible existence of existenceofoff-balance
sheet
wealthoffbalance sheet wealth management products as management products, as well as other offwell as other off-balance sheet liabilities and balance sheet liabilities and undisclosed
undisclosed arrangements on pledge of deposit arrangements on pledge of deposit of theof the Group, and to provide relevant Company. The Report confirmed that theinvestigation reports and information. At Company did not have such material off-balance
present, PwC has not been informed of the sheet transactions, assets, or liabilities. In terms
progress of such independent investigation and of the Report, the independent auditors have
has not received the relevant investigation completed the following works specifically:
reports and information.
1. the independent auditors have obtained theReport and have verified that the Reportcovers all potential off-balance sheettransactions and arrangements;
2. the independent auditors have assessed theadequacy of investigation methods throughinterviewing key personnel, examining
internal documents, and browsing external
information et cetera.; and3. the independent auditors have examined
whether the Report conclusion is clear,
precise and fully supported by the evidence.
2. The Group has not settled certain borrowings The independent auditors have obtained andand other interest-bearing liabilities that were reviewed the Company’s assessment on its
due on their contractual maturity dates in 2021. compliance with the terms of certain borrowing
The management of the Group is required to contracts of the Company, including but notfurther provide the Group’s assessment on its limited to financial covenants, non-financial
borrowers’
undertakings
andcompliance with the terms of certain borrowing covenants,
contracts of the Group (including but not limited warranties, borrowers’ obligations and crossto financial covenants, non-financial covenants, default provisions. In cases where the Groupborrowers’
undertakings
andwarranties, defaulted, the Group has re-categorized theborrowers’
obligations
andcross-default related debts as current liabilities. The
provisions).
independent auditors have reviewed the terms ofsuch reserves and the rationale for the recategorization.

– 14 –

Material matters relating to the audit of theGroup’s consolidated financial statements
Audit procedure
3. An assessment on the Group’s going concern The independent auditors have re-examined the
preparation basis for the year 2021 and the management’s assessment on the Company’s
related disclosure implications, which includes going concern assumption, which includes cash
cash flow projections for not less than 12 flow projections for 12 months, as well asmonths from 1 January 2022, plans and supporting plans and measures for themeasures prepared for future cash flows, and the projections. The key assumptions haverelated explanations or basis for key assumptions reasonable bases. However, as the cash flowin the cash flow projection.
projections include several assumptions that arematerially uncertain and have key impact on theGroup’s ability to continue as a going concern,
the independent auditors are unable to obtainsufficient evidence to prove the Company’s
ability to continue as a going concern.
Therefore, the independent auditors do not
express their opinion on the Company’s going
concern assumption.
4. Supporting information on the net realisable The independent auditors have reviewed thevalue of properties under development and Company’s assessment on the net realisable
completed properties held for sale as well as the value of the properties. The assessment wasrecoverable amount of self-owned properties and based on a reasonable valuation method and thefixed assets under the Group’s property business results are fully supported by the evidence. The
independent auditors have also completed an
segment as of 31 December 2021.
independent valuation review of these assets.
5. Some of the land use rights grant contracts The independent auditors have obtained theowned by the Group have been terminated and Company’s analysis on the recoverability of
the Group is required to return the land use land use right premiums and have verified therights and the management of the Group has yet supporting documents. With respect to theseto provide supporting documents on the resumed lands, the Company has maderecoverability of the land use right premiums corresponding accounting treatment, including
derecognition of the ownership of such lands
paid in accordance with such contracts.
and provision of losses from related treatments.
Such losses have been recognized in the year ofoccurrence.

– 15 –

Material matters relating to the audit of theGroup’s consolidated financial statements
Audit procedure
6. Management of the Group has assessed the The independent auditors have reviewed the data
provision for impairment of the long-term assets of the impairment test for the vehicle business,(including fixed assets, purchased intangible including project budgets, feasibility analysis
assets, capitalised intangible assets and reports, future cash flow projections andgoodwill) under its vehicle business segment as underlying key assumptions. The test results areof 31 December 2021, with reference to the net well supported. With respect to the impairment
discounted value of future cash flows of the assessment of such assets, the Company has
cash-generating units of the Group’s vehicle engaged professional independent appraisers tobusiness segment; however, management has yet conduct the assessment and the independent
to provide supporting documents for the relevant auditors have also reviewed such assessment.
capitalised intangible assets (including but notlimited to project budgets, feasibility analysis
reports and other documents), as well as material
supporting documents for the relevant basis, key
assumptions and other matters for calculation of
the net discounted value of future cash flows of
the cash-generating units.
7. The Group’s consolidated financial statements, The independent auditors have obtained thebreakdown of various accounting items and relevant information of the Company for 2021
and 2022. For 2020, the independent auditors
notes to the financial statements.
are unable to obtain sufficient data required toverify opening balances due to employee
turnover in the Company and lack ofcooperation from former auditors. Therefore, theindependent auditors are unable to express theiropinion on the opening balances.
8. Other important financial information, which The independent auditors have obtained theincludes supporting documents for revenue relevant information of the Company for 2021
recognition of sales of properties (including but and 2022. For 2020, we are unable to obtain
not limited to information on property purchase sufficient data required to verify opening
contracts, acceptance reports and notices of balances due to employee turnover in thedeliveryofproperties),
materialsof Company and lack of cooperation from former
completeness assessment on cost, expenses and auditors. Therefore, the independent auditors areliabilities of liquidated damages, a complete list unable to express their opinion on the openingof pending litigations (including but not limited balances.
to information on relevant specific cases and theassessment of the impact of such cases on theaccuracy and completeness of unrecorded
liabilities), the assessment of expected credit
lossesonreceivables(including
trade
receivables and other receivables) as of 31
December 2021, balance with related parties andlists of related party transactions as well as thereconciliations results thereof.

– 16 –

MANAGEMENT DISCUSSION AND ANALYSIS
Overview
The principal business activities of China Evergrande New Energy Vehicle Group Limited (the‘‘Company’’) and its subsidiaries (the ‘‘Group’’) include the technology research and development(‘‘R&D’’) and manufacturing of, and sales services in respect of new energy vehicles (collectively, the‘‘New Energy Vehicle Segment’’ or the ‘‘Continuing Operations’’). The Group previously also
operated in the health management services business, which included the operations of elderly care andrehabilitation centres and various institutions and establishments (collectively, the ‘‘Discontinuing
Operations held for sale’’). The Group decided in late 2021 to phase out and discontinue suchbusiness operations and focus its efforts on the New Energy Vehicle Segment.
The Company actively responds to the national strategy of building a strong country through scienceand technology, and forayed into the new energy automobile industry with a huge market scale byforward planning. Through the closed loop of technology and data, the Group will create an
intelligently connected mobile space of ‘‘car and home integration’’, and establish Hengchi as a worldrenowned Chinese automobile brand.
Dedicated to the global R&D and promotion of new energy vehicles applications, the Group adheres to
its core technology vision of ‘‘achieving world-class core technology and proprietary intellectual
property rights’’ and its quality goal of ‘‘achieving world-class product quality’’, and has established afull industry chain of new energy vehicles covering automobile manufacturing, electric motor control,
power batteries, vehicle sales, smart charging and other aspects.
The New Energy Vehicle Segment of the Group achieved breakthrough progress for the twelve months
ended 31 December 2022 (the ‘‘Reporting Period’’). The Group commenced the pre-order of Hengchi
5, more than 320 units of which were delivered during the Reporting Period. The Group had applied
for a total of 3,512 patents in similar fields of study worldwide, 2,632 of which have been granted
patents. The Group also built exhibition and experience centres, sales centres, as well as after-sales
service centres, to be located in cities including Beijing, Shanghai, Guangzhou and Tianjin, in order toconstruct a strong closed loop of online and offline transactions. The main functions of such centres
include promoting the Group’s brand, vehicle sales and user experience, and providing after-sales
maintenance and repair services such as vehicle delivery, machine repair and sheet metal spraying
services.
During the Reporting Period, the Group continued to conduct a number of residential property sales
under this segment, which was a continuation of this business segment’s operations in 2021, but will be
gradually phased out. In terms of the Discontinuing Operations held for sale, the Group continued tophase out its operations in the healthcare management services industries, through which it hadprovided, among others, health management, healthcare, medical care, rehabilitation and elderly careservices through a membership platform. The Group reduced the number of health and living projects,
which mostly were Evergrande Elderly Care Valley, sold in the year, from around 19,000 units at an
approximate gross floor area of 2.2 million sq.m. in 2021 to under 1,000 units at an approximate gross– 17 –

floor area of less than 156,000 sq.m. during the Reporting Period. During the Reporting Period, thehealth management services business also provided medical cosmetology and health management tocustomers, which also included out-patient services provided to patients at the Group’s hospitals, mostnotably the Evergrande International Hospital, and health institutions, which will also be discontinued
eventually.
Financial Review
In the second half of 2021, as the Group decided to phase out the health management business andfocus its operations on the New Energy Vehicle Segment moving forward, there had been a representation of the Group’s annual financial statements for 2022, as compared to 2021. After such representation, the Discontinuing Operations held for sale recorded losses of RMB29,054.19 million in
2021 and RMB12,810.77 million in 2022.
I.

Liabilities
The total liabilities in the 2022 statement were RMB183,872.12 million, and the liabilities after
excluding the receipts in advance of RMB3,313.65 million were RMB180,558.47 million,
representing a year-on-year increase of RMB62,899.75 million compared to RMB117,658.72
million, the liabilities after excluding receipts in advance in 2021. Among which:1.

Borrowings
As at 31 December 2022, the Group’s borrowings amounted to RMB25,985.17 million,
representing a decrease of RMB14,679.74 million compared to RMB40,664.91 million in
2021.
Part of the borrowings is secured by the property and equipment, land use rights, investment
properties, properties under development, completed properties held for sale and equity
interests of several subsidiaries within the Group. As at 31 December 2022, the averageannual interest rate of the borrowings was 7.65% (31 December 2021: 8.56%).

2.

Trade and Other Payables
As at 31 December 2022, the Group’s trade and other payables amounted to RMB30,796.18
million, representing a decrease of RMB40,945.68 million compared to RMB71,741.86
million in 2021.

3.

Liabilities of Discontinuing Operations Held for Sale
As at 31 December 2022, the Group planned to sell residential projects and held liabilities ofDiscontinuing Operations held for sale of RMB119,002.28 million.

4.

Other Liabilities
As at 31 December 2022, the Group’s other liabilities amounted to RMB4,774.84 million.

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II. Operating Loss during the Reporting Period
1.

Operating losses from Continuing Operations during the Reporting Period
Revenue
In 2022, the Group’s Continuing Operations (which mainly include the New Energy Vehicle
Segment) had a turnover of RMB134.01 million, representing an increase of 78.71% ascompared to RMB74.99 million in 2021. Such an increase in revenue was mainly attributable
to the commencement in the sales of the Group’s Hengchi 5 model. In July 2022, the Group
commenced the pre-order of this model and over 320 units were delivered by the end of theReporting Period. For such reasons, the sales in vehicles and vehicle components increased
sharply from RMB1.75 million in 2021 to RMB60.63 million in 2022, among which,
RMB60.34 million and RMB0.29 million were generated from sales of vehicles and sales ofvehicle components respectively. On the other hand, the revenue generated from the provisionof technical services was RMB40.92 million in 2022, among which, RMB36.75 million and
RMB2.65 million were generated from technical services provided by NEVS and the Japan
Research Institute respectively.
Gross loss
The gross loss of the Group’s Continuing Operations decreased from RMB170.84 million in
2021 to RMB93.86 million during the Reporting Period, mostly due to the commencement in
the delivery of Hengchi 5, which began generating revenue for this segment. The gross loss
margin of the Group had dropped from 227.83% in 2021 to 70.04% in 2022, which was
mainly attributable to the same reasons.
Other income, net
Other income during the Reporting Period was RMB274.84 million.
Sales and marketing costs
Sales and marketing expenses of the Group’s Continuing Operations decreased by 84.75%
from RMB1,285.67 million in 2021 to RMB196.13 million in 2022, mainly due to a decreasein branding expenses for the New Energy Vehicle Segment and a decrease in sales labor costs.
Administrative expenses
Administrative expenses of the Group’s Continuing Operations decreased by 66.43% from
RMB7,795.27 million in 2021 to RMB2,616.66 million in 2022, mainly due to decreases inheadcount and salary reductions for some of the employees and a decrease in R&D
investments.

– 19 –

Finance costs
The finance cost of the Group during the Reporting Period was RMB1,222.81 million.
Operating losses
In summary, the operating loss from the Continuing Operations during the Reporting Period
was RMB3,854.62 million.
2.

Non-operating losses from Continuing Operations during the Reporting Period
Other losses, net
Other losses during the Reporting Period were RMB3,598.64 million, due to losses related to
the recovery of land, losses from joint investments, liquidated damages and other losses.
Impairment loss on property, plant and equipment and intangible assets
The net impairment losses on property, plant and equipment, intangible assets and goodwill of
the Group’s Continuing Operations decreased by 27.62% from RMB11,399.08 million in 2021
to RMB8,251.04 million in 2022, mostly due to a full impairment of goodwill in 2021.
Impairment losses on financial assets
The impairment losses on financial assets during the Reporting Period were RMB79.69
million, mainly due to the Group’s corresponding provisions for other receivables andprepayments of associates, joint ventures and third parties.
In summary, the non-operating loss for the Reporting Period was RMB11,929.37 million.

III. Loss for the Year from Discontinuing Operations Held for Sale
The loss from the Discontinuing Operations held for sale during the Reporting Period was
RMB12,810.77 million as the Company decided to phase out elderly care valley and vehicle living
projects and focus its efforts on the New Energy Vehicle Segment.
During the Reporting Period, for the reasons stated above, the Group recorded a loss of RMB27,663.71
million, representing a decrease of 50.90% as compared to the loss made in 2021.
Business Review
In 2022, China’s new energy vehicle market continued to grow. According to the figures released by
the China Association of Automobile Manufacturers, the annual production and sales volume of newenergy vehicles reached 7.058 million vehicles and 6.887 million vehicles respectively, representing a
year-on-year increase of 96.9% and 93.4% respectively, ranking first in the world for eight consecutive
years. With the rapid development of the industry, in 2022, the State Council, the Development and– 20 –

Reform Commission, the Ministry of Industry and Information Technology and other relevant
departments have issued a series of policies and regulations to regulate the development of the industry
and guide the transformation and upgrade of the industry.
Considering the market potential and the support received from both the industry and government
policies, the Group will strive to seize the once-in-a-century industry development opportunity,
strengthen its technology R&D and innovation, further improve product layout and fully promote thecontinuous development and growth of the New Energy Vehicle Segment. The Group’s first production
model, the Hengchi 5, was made available for pre-sale in July 2022, with mass production commencing
in September 2022 and delivery commencing in October 2022.
R&D aspects:
During the Reporting Period, the Group continued to focus on R&D and had 811 scientific researchpersonnel. By streamlining and integrating R&D institutions, the Vehicle Technology Research Institute(整車研究院) and the Academy of Intelligent Science (智能科學院) were retained to be responsible for
product planning, styling and design, engineering development, virtual analysis, trial production testing
and major research and development work such as forward-looking technology research, including
technological exploration and innovation in the fields of intelligent network connection andautonomous driving.
In terms of car launches, the Hengchi 5 model has successfully entered the pilot production phase,
focusing on software function iteration and product quality optimisation for full mass production in
September 2022. The Group is undertaking the development work on Hengchi 6 and Hengchi 7 toimprove product competitiveness.
In terms of Smart Internet and In-Vehicle Software design, in October 2022, the Group successfullycompleted the mass production of our first model Hengchi 5 developed based on the first-generationelectronic and electrical architecture platform, and the performance and functions of various software
have met the design indicators. The Group continues to focus on the mass production of other models
with the same architecture platform and has started planning for the next generation architecture
platform. In terms of developing intelligent cabin and intelligent driving systems, the Group completeddelivery of H-Smart OS 1.0 system and H-Pilot 1.0 parking system which are embedded in the Hengchi
5 model in the third quarter.
Manufacturing aspects:
In September 2022, the Tianjin manufacturing base commenced mass production of Hengchi 5, anddelivery began in October 2022.
During the Reporting Period, both the Shanghai manufacturing base and the Guangzhou manufacturingbase formulated an equipment management plan based on the downtime management system. The
equipment in each workshop should be turned on once every quarter for dynamic test runs andequipment maintenance.

– 21 –

In terms of power batteries, according to the capital position of the Group, during the Reporting Period,
the Group focused more on new vehicle development, and the investment in R&D and baseconstruction for power batteries gradually slowed down.
Sales of new energy vehicles:
The Group adopts the direct + authorised agent model to build the sales channel network of Hengchi,with 60 sales shops set up in 33 key cities such as Shanghai, Guangzhou, Tianjin, Beijing, Shenzhen
and Hangzhou. At the same time, it has signed strategic cooperation agreements with Huasheng andBosch automobile maintenance chain brands to lay out after-sales service outlets nationwide.
Charging services
By connecting to the Xingluo (星絡) charging platform, Hengchi APP has access to the State Grid,
Southern Power Grid, Teld (特來電) and Star Charging (星星充電), etc., providing customers withintelligent functions such as one-click charging station enquiry, guidance for staggered charging, routenavigation and charging reservation.
Sales of vehicle living projects:
Under the New Energy Vehicle Segment, as a continuation of the previous year’s operations, the Groupalso conducted the sales of vehicle living projects during the Reporting Period. The Group operated 20
vehicle living projects and achieved a sales volume of 314 units (2021: 20,090 units), representing afloor area of 25,000 sq.m. (2021: 2.0 million sq.m.), at a pre-sales amount of RMB250 million (2021:
RMB17.0 billion). In order to accelerate sales, the average discount given to purchasers was 32%,
which was on par with those in 2021 and the first half of 2022.
OUTLOOKIn the future, the Group will make every effort to ensure the continuous and stable production anddelivery of Hengchi 5, and launch other competitive new models one after another in line with market
demand. The Group believes that the new energy automobile industry is developing positively.
In the field of R&D, the Group will continue to strengthen R&D investment and consolidate R&D
foundation. While accelerating the R&D of core technologies to lead the technology innovation anddevelopment of smart electric vehicles, the Group will also stay focused on the R&D of new models, so
as to provide users with more forward-looking smart electric vehicle products integrating technologicalaesthetics.
In the field of manufacturing, the Group will continue to strive to upgrade the manufacturing level, toperfect the quality systems and to reach planned production capacity as soon as possible in the Tianjin
manufacturing base.

– 22 –

In respect of marketing, the Group will continue to push ahead the deployment, furnishing and openingof exhibition and experience centres, sales centres, as well as after-sales service centres, along with thefurther expansion of sales channels.
The Group will continue to uphold a customer-oriented approach and continue to enhance the vehicle
user experience and quality of services. At the same time, the Group will keep a close watch on thedevelopment trend of the industry, seize future opportunities arising from economic recovery with an
aim to improve the value and market competitiveness of the Group.
OTHER ANALYSIS
Capital Institutions, Liquidity and Financial Resources
The Group financed its operations by borrowings, shareholders’ equity and cash generated fromoperations.
As at 31 December 2022, the Group had borrowings and lease liabilities (collectively ‘‘totalborrowings’’) amounting to RMB41,141.43 million (including RMB26,608.25 million from Continuing
Operations); total borrowings as at 31 December 2021 amounted to RMB41,678.64 million.
As at 31 December 2022, the Group’s gearing ratio was 23.09% (as at 31 December 2021: 29.03%).
Gearing ratio was calculated as total borrowings divided by total assets.
Capital Commitments, Significant Investments, Pledge of Assets
As at 31 December 2022, the Group had capital commitment of approximately RMB16.650 billion forthe construction and the acquisition of fixed assets in Tianjin, Shanghai, Guangzhou, Yangzhou, andother areas in China.
As at 31 December 2022, the Group’s borrowings of RMB16.355 billion (including RMB6.480 billion
from Continuing Operations) were secured by pledge of the Group’s property, plant and equipment,right-of-use assets, properties under development, completed properties held for sale, and equity
interests of certain subsidiaries totalling at RMB26.812 billion (including RMB13.363 billion from
Continuing Operations).
Material Litigation
As at 31 December 2022, the Group had a total of 36 pending litigation cases which involved morethan RMB30 million each, and the total amount involved was approximately RMB7,916 million.
Failure to Repay Debts Due
As at 31 December 2022, the Group’s unpaid debts due amounted to approximately RMB11,626
million. In addition, as at 31 December 2022, the Group’s overdue commercial bills amounted toapproximately RMB18,512 million.

– 23 –

Employee and Share Option Scheme
As at 31 December 2022, the Group had a total of 4,506 employees, and staff with a bachelors’ degree
or above accounted for approximately 90%. It incurred a total staff cost (including Directors’
remuneration) of approximately RMB1,689.75 million during the Reporting Period (2021:
RMB2,766.26 million).
To provide incentives or rewards to the staff and the Directors of the Company, the Company adopted
a share option scheme (the ‘‘Share Option Scheme’’) on 6 June 2018. Since its adoption and up to 31
December 2022 and save as disclosed in the announcements of the Company published on 6 November
2020, 15 June 2021 and 21 September 2021 regarding the respective grants of share options, theCompany has not granted any other new share option under such Share Option Scheme or adopted anyother share option scheme.
As at 31 December 2022, a total of 752,200,000 share options were granted under the Share Option
Scheme, amongst which: (i) a total of 388,600,000 share options granted under the Share Option
Scheme had not been exercised; (ii) a total of 363,600,000 share options granted under the Share
Option Scheme had lapsed; and (iii) no share option granted under the Share Option Scheme had beencancelled.
Contingent Liabilities
As at 31 December 2022, the Group did not have any material contingent liabilities (year ended 31
December 2021: Nil).
DIVIDEND
The Directors do not recommend the payment of dividend for the year ended 31 December 2022 (yearended 31 December 2021: Nil).
AUDIT COMMITTEE
The Audit Committee comprises three independent non-executive Directors.
The Audit Committee reviewed with management the accounting principles and practices adopted by
the Group and reviewed the Group’s annual results and financial statements for the Reporting Period.
The figures in this preliminary announcement of the results of the Group have been agreed to theamounts set out in the Group’s consolidated financial statements for the Reporting Period by the auditorof the Company, Prism Hong Kong and Shanghai Limited. The work of Prism Hong Kong andShanghai Limited in this respect, did not constitute an assurance engagement in accordance with Hong
Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards
on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants and,
consequently, no assurance will be expressed on the preliminary results announcement.

– 24 –

IMPORTANT EVENTS AFTER THE REPORTING PERIOD
Very Substantial Disposal and Connected Transaction in relation to the Disposal of Subsidiaries
On 24 April 2023, the Company entered into a sale and purchase agreement with Anxin Holding
Limited (the ‘‘Purchaser’’) and China Evergrande Group, pursuant to which the Purchaser
conditionally agreed to purchase, and the Company conditionally agreed to sell as the beneficial
owner, one issued share of each of Assemble Guard Limited (‘‘Assemble Guard’’) and Flaming Ace
Limited (‘‘Flaming Ace’’), representing the entire issued share capital of Assemble Guard and Flaming
Ace respectively, at the consideration of RMB2 (the ‘‘Disposal’’). The Disposal was completed on 12
May 2023 (after the general meeting held on the same day). For further details of the Disposal, pleaserefer to the announcements of the Company dated 24 April 2023, 25 April 2023, 10 May 2023 and 12
May 2023 and the circular of the Company dated 25 April 2023.
Save as disclosed above, up to the date of this announcement, no significant events occurred after theReporting Period.
CORPORATE GOVERNANCE
Corporate Governance Code
The Company had complied with all the code provisions of the Corporate Governance Code as set out
in Appendix 14 of the Listing Rules throughout the Reporting Period, except as disclosed below.
Code provision B.2.2 stipulates that every director, including those appointed for a specific term,
should be subject to retirement by rotation at least once every three years. No annual general meetingof the Company had been held since 18 June 2021. Therefore, no Directors have been subject toretirement and re-election by the Shareholders at the annual general meeting. An annual general
meeting of the Company will be arranged in due course, for the retirement and re-election of Directors.
Code provision C.2.1 stipulates that the roles of chairman and chief executive should be separate andshould not be performed by the same individual. Throughout the Reporting Period, the Company had
not had any officer with the title of Chief Executive Officer. During such period, the overall
responsibility of supervising and ensuring that the Group functions in line with the order of the Boardin terms of day-to-day operation and execution was vested in the Board itself.
Code provision F.2.2 stipulates that the chairman of the Board should attend the annual general
meeting, and invite the chairmen of the audit committee, remuneration committee, nominationcommittee and any other committees (as appropriate) to attend. No annual general meeting of theCompany had been held since 18 June 2021. An annual general meeting of the Company will bearranged in due course.

– 25 –

Model Code for Securities Transactions
The Company has adopted the Model Code as its own code of conduct regarding Directors’ securities
transactions. Having made specific enquiry to the Directors, all of them confirmed that they had
complied with the required standard of dealings as set out in the Model Code throughout the Reporting
Period.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES
During the Reporting Period, neither the Company nor any of its subsidiaries purchased, sold orredeemed any of the Company’s listed securities.
2023 ANNUAL GENERAL MEETING
As at the date of this announcement, the Company has not determined the date on which theCompany’s 2023 annual general meeting will be held and the relevant book closure arrangement.
Further announcement(s) will be made by the Company as and when appropriate in accordance with the
Listing Rules.
PUBLICATION OF THE ANNUAL RESULTS
This annual results announcement is published on the Stock Exchange’s website at www.hkexnews.hk
and the Company’s website at https://www.irasia.com/listco/hk/evergrandevehicle/.
FORWARD LOOKING STATEMENTS
There can be no assurance that any forward-looking statements regarding the Group set out in thisannouncement or any of the matters set out therein are attainable, will actually occur or will be realisedor are complete or accurate. Shareholders and/or potential investors of the Company are advised toexercise caution when dealing in the securities of the Company and not to place undue reliance on theinformation disclosed herein. Any holder of securities or potential investor of the Company who is in
doubt is advised to seek advice from professional advisors.

– 26 –

CONTINUED SUSPENSION OF TRADINGThe Company has made submission to the Stock Exchange in relation to the resumption progress andwill provide further updates by way of announcement as and when appropriate.
At the request of the Company, trading in the Shares on the Stock Exchange has been suspended witheffect from 9:00 a.m. on 1 April 2022 and will remain suspended until further notice.
By Order of the Board
China Evergrande New Energy Vehicle Group Limited
SIU Shawn
ChairmanHong Kong, 26 July 2023
As at the date of this announcement, the executive Directors of the Company are Mr. SIU Shawn, Mr. LIU Yongzhuo and
Mr. QIN Liyong; and the independent non-executive Directors of the Company are Mr. CHAU Shing Yim David, Mr. GUO
Jianwen and Mr. XIE Wu.

– 27 –