NEVS AB has sent its Annual Report for 2017 to Bolagsverket (Swedish Companies Registration Office). Is shows that the losses were 996 MSEK, about the same as the previous year (993 MSEK).
”This is according to plan. We are in a period with very large investments in new car models and a completely new plant in China. As we haven´t started serial production of car you can say that these investments are shown as a loss”, Stefan Tilk, CEO at NEVS, comments.
”Above all, this is no surprise for our Chinese owners. They are very well aware of the fact that it costs a lot to start up in this business. It is also our owners who make sure that the company continues to develop. They know that NEVS is positioned in the right business; electrical vehicles, soon autonomous and shared. It is because of our owners' strong conviction they are now striving for NEVS to have three different electric car plants within a few years’ time.
In 2017, NEVS made huge investments, totaling SEK 2 billion, mainly in the new Tianjin factory and in the further development of the new 9-3 EV.
Other investments made were a global, fully integrated IT solution. NEVS also invests in keeping the factory in Trollhättan up to date, ahead of coming car manufacturing.
As NEVS is investing, the balance sheet increases to a large extent. NEVS assets increased from SEK 3.5 billion (2016) to SEK 5 billion (2017).
At the same time as NEVS made these investments, the company has had a tight cash flow in 2017. Many suppliers have been waiting for their payments on time.
"We have a very good supplier network that supports us and takes risks into an exciting future. Our loyal suppliers and partners are truly one of NEV's forces, ” commented Jörgen Scribe, CFO at NEVS.
June 18, 2018
For more information, please contact Fredrik Fryklund, VP Communications & Public Affairs, +46 739 666449.
Some important events in 2017:
- The NEVS group granted a production license for electric cars
On January 25, 2017, NEVS subsidiary (NNEV) in Tianjin became the first company with main owners outside of China, granted the production license for electric cars issued by the Chinese National Development Reform Commission (NDRC).
- Battery supply secured
In February 2017, NEVS signed a strategic framework agreement with Contemporary Amperex Technology Co., Limited (CATL), to secure the battery supply of NEVS electric cars in the Chinese market. CATL is one of the leading global battery power suppliers for electric cars in China.
- New financing / New owners
A new cooperation agreement, including funding (MoU) was signed with DiDi Chuxing in June and later DiDi made a first deposit in accordance with the agreement signed in October. The cooperation was deepened in the autumn and winter, coupled with the development of future cars.
- Premiere for NEVS concept car InMotion
In conjunction with the technology exhibition CES in Shanghai, NEVS for the first time released its concept car InMotion, which describes the company's vision of future mobility; a self-propelled and shared electric car with different settings depending on the needs and wishes of passengers.
- GSR Capital
An in-depth cooperation with GSR Capital began in late 2017, which led to a formal agreement between the parties being signed on March 14, 2018.
- First NEVS 9-3 EV rolled off the line in the Tianjin factory
On December 5, 2017, the first electric car was completed in the new Tianjin plant, which was celebrated with a major ceremony in Tianjin.
- Changed agreement with New LongMa Motors
Neither NEVS nor New LongMa Motors (NLM) in Fuijan chose to fulfill their commitments in 2017. By the end of 2017, a new agreement was signed between NEVS and NLM, as NEVS's ownership share changed from previously 50% to 15%. As NEVS gets a brand new electric car factory in Tianjin, there is no need for the plant in New LongMa.
Please read the annual report in pdf format: https://www.nevs.com/en/investors/financial-reports/