(Yicai Global) March 27 -- Chinese property giant Evergrande Group will stop its nine-year journey into exploring new business directions and steer toward the winning formula of real estate development, cultural tourism, healthcare and new energy vehicles.
Real estate is the foundation, cultural tourism and advanced healthcare are the two wings, and NEV production is the head, Chairman Xu Jiayin said at the company's 2018 earnings meeting yesterday. These four segments can achieve trillions of Chinese yuan in sales, and the firm will not diversify its business within five years, Xu added.
Shenzhen-based Evergrande has invested in hotels, hospitals, entertainment and finance but since last year it has focused increasingly on new energy vehicles by buying into battery and transmission makers, as well as Swedish electric sports car firm Koenigsegg Automotive for its intellectual property.
"The company has explored crops, oil, dairy, mineral water and other industries in the past, but the sales by volume of these were only hundreds of millions of Chinese yuan per year," Xu added.
The billionaire chairman is confident about the company's car manufacturing capabilities. "I used to be a workshop director for ten years, don't underestimate my ability in manufacturing," Xu said.
The firm's stock [HKG: 3333] has been declining through this week to trade at HKD26.05 (USD3.30) today at 3.04 p.m.
Editor: Emmi Laine