Alibaba and Tencent-backed Evergrande Raises HK$4 Billion

(Source: Evergrande Group)

On Sept. 15, Evergrande Automobile (HK.0708) announced that it had raised HK$4 billion in investment through the placement of new shares to support its new energy vehicle development.

According to the list, investors include not only top investment funds Yunfeng Fund and Sequoia Capital, but also Internet giants Tencent and Didi, which can be called the most luxurious investor lineup in the auto industry.

The “coveting” of the aforementioned giants in the new energy automobile industry has long been known. Tencent, Alibaba, and Sequoia Capital focus on investment in vehicle manufacturing, while Didi focuses on promoting green travel, according to INewsweek.

According to public information, Tencent has become the second-largest shareholder of NIO and the fifth-largest shareholder of Tesla. Alibaba and Sequoia Capital are the second-largest shareholders and important strategic investors of Xpeng Motors.

Didi is the top player in the transportation sector with its global daily orders reaching 50 million. As of the end of 2019, the number of pure electric vehicles registered on the Didi platform amounted to 969,000, accounting for more than 30% of the country’s pure electric vehicle ownership.

On Aug. 3, the first six models of Hengchi were unveiled at the same time, and its two major production bases in Shanghai and Guangzhou were installed and commissioned on Aug. 7 across the board. Mass production is planned for the second half of next year.

SEE ALSO: China’s Evergrande Unveils Six New Energy Vehicles, Ushers in Leap-forward Development in NEVs

Analysts believe that the involvement of Jack Ma and Ma Huateng who rarely invest in the same company at the same time reflects the optimism of the two big tech giants on the prospects of Evergrande Auto, and also fully demonstrates Evergrande’s strong appeal.