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Evergrande clarifies report of talks with Xiaomi to sell EV unit

By Chen Liubing | chinadaily.com.cn | Updated: 2021-08-20 10:46
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China Evergrande Group made an announcement on Aug 10 saying that the group was in discussion with potential independent investors to sell part of its stakes. [Photo/IC]

China Evergrande Group clarified the report of in-depth negotiations with smartphone maker Xiaomi to sell its EV unit by saying talks with Xiaomi were at a very early stage, according to an official announcement by the real estate developer on Friday.

A Reuters report on Thursday said Evergrande has been in talks with Xiaomi and other firms as it looks to sell part of a 65 percent stake in its electric vehicle unit.

Xiaomi Corp also announced on Friday that the company has talked with various carmaking teams, but has not made any resolution in terms of its intentions regarding any potential cooperation. The company said it will no longer respond to market rumors until an official announcement is disclosed, cls.cn reported.

China Evergrande Group made an announcement on Aug 10 saying that the group was in discussion with potential independent investors to sell part of its stakes, including its EV and property management units, reported CQCB.com.

Evergrande has invested 47.4 billion yuan ($7.3 billion) in its new energy vehicle sector as of the end of 2020, including 24.9 billion yuan in research and development. The company unveiled nine new models at this year's Shanghai Auto Show, without a clear timetable for mass production and delivery.

The People's Bank of China and the China Banking and Insurance Regulatory Commission said in a statement that Evergrande Group, as a leading company in the property sector, should implement the country's strategic policy supporting the stable and healthy development of the property market, according to a China Daily report on Thursday.

The central bank and the commission also had a meeting with China Evergrande Group's executives on Thursday, urging it to stabilize its operations and proactively defuse risk.

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