China Evergrande New Energy Vehicle Group (708) H1 2026 earnings summary

Executive summary

• Completed strategic transformation to an asset-light model, exiting vehicle manufacturing and focusing on technical services and lithium battery trading.

• Revenue for H1 2026 was RMB8.73 million, mainly from the first sales of the Battery Trading Business; no vehicle manufacturing revenue.

• Net profit reached RMB185.72 million, a significant turnaround from a net loss of RMB585.32 million in H1 2025, driven by exchange gains.

• All PRC production facilities disposed of or in insolvency; operations now centered in Hong Kong and Sweden.

Financial highlights

• Revenue increased 34.07% year-over-year to RMB8.73 million, with gross profit of RMB0.52 million and a gross margin of 5.98%.

• Net profit of RMB185.72 million, compared to a net loss of RMB585.32 million in H1 2025.

• Other gains, net, were RMB554.57 million, mainly from exchange gains on borrowings.

• Administrative expenses decreased 40.69% year-over-year to RMB23.55 million.

• Net finance costs reduced to RMB345.82 million from RMB509.03 million year-over-year.

Outlook and guidance

• Focus on expanding technical services in Europe and ramping up the Battery Trading Business, targeting RMB60 million in sales in the first year.

• Ongoing discussions for holistic debt restructuring with major creditors and liquidators.

• Aims to resume trading on the Stock Exchange by fulfilling resumption guidance.