Shanghai (ZXZC)- Shanghai Songjiang Economic & Technological Development Group, one of the two shareholders of Evergrande NEVS (Shanghai), is going to transfer its 20% stake in Evergrande NEVS (Shanghai), seeking a floor price of 443 million yuan ($63 million), according to a posting on the Shanghai United Assets and Equity Exchange website.

(photo source: NEVS)

Evergrande NEVS, established in May 2018 with a registered capital of 2.5 billion yuan ($357 million), engages in the development, manufacture and sales of new energy vehicles and the components. Tianjin-based Evergrande Guorui New Energy Technology, the other shareholder, possesses 80% stake and enjoys the right of first refusal on the rest. The company’s aforesaid minority shareholder is a local state-owned enterprise in Shanghai.

The joint venture, with no operating revenue, suffered a net loss of 25.7 million yuan ($3.7 million) and its liabilities stood at 160 million yuan ($22.9 million) in 2018. As of October 31 this year, the company lost 62.8 million yuan ($9 million) and was 374 million yuan ($53.4 million) in debt.   

According to the China Passenger Car Association (CPCA), China’s homegrown new energy PV (NEPV) sales have slide year on year for five consecutive months from July this year. China’s NEPV sector sold about 79,000 units last month, recording a plunge of 41.7% over a year ago, while for the first eleven months, the wholesale volume of NEPVs edged up 7.7% from a year ago to roughly 923,000 units.

Amid the downturn trend in the NEV market, however, Evergrande group has prepared a great amount of budget for its NEV development—20 billion yuan ($2.86 billion) for the year of 2019, 15 billion yuan ($2.14 billion) for 2020 and 10 billion yuan ($1.43 billion) for 2021, said Xu Jiayin, chairman of the Group.