(Yicai Global) March 27 -- Chinese property developer Evergrande Group slumped over 5 percent in one trading day after its chairman reaffirmed its determination to shift into the auto industry.

The company's stock [HK:3333] fell 3.14 percent to to HKD26.20 (USD 3.90) "It is a very clear direction for new energy vehicles to replace combustion vehicles, and it has great market potential. I firmly believe that Evergrande will succeed in the automotive industry," said Xu Jiayin, its chairman at a shareholders' meeting yesterday.

However, entering the high-cost auto industry brings uncertainties to investors and dims the positive halo of Evergrande's sound performance last year.

Evergrande published its earnings report yesterday. The Shenzhen-based firm's achieved revenue was up by one-half per year to CNY466 billion (USD69.4 billion) this year. 

Contract sales totaled CNY551.3 billion, up 10 percent from 2017. Core business profit reached CNY78.3 billion, up an annual 93.3 percent. Profit attributable to shareholders was CNY37.4 billion, a 53.4 percent annual rise.

The contracted sales area was 52.435 million square meters, up 4.2 percent from 2017. The average contract sales price was CNY10,515 (USD1566) per square meter, up 5.6 percent from 2017.

Evergrande is expected to achieve CNY600 billion in sales this year and will maintain this high growth rate, Xia Haijun, the firm's president and vice chairman told the meeting.

Evergrande invested in electric vehicle maker National Electric Vehicle Sweden, set up a joint venture with Swedish sports carmaker Koenigsegg Automotive and took over Shanghai-based battery producer Cenat New Energy, while its cooperation with US electric carmaker Faraday Future has failed. 

Editor: Ben Armour