(Reuters) -The electric vehicle unit of embattled real estate developer China Evergrande (HK:) said on Tuesday it expected to report a wider loss for the first half of 2024, due to an increase in the provision for impairment.
China Evergrande New Energy Vehicle estimated a consolidated net loss of about 20.25 billion yuan ($2.84 billion) for the six months ended June 30, compared with 6.87 billion yuan in the same period a year earlier.
The EV unit, which is in talks with a potential buyer to take a stake in the company, has announced an impairment provision of about 16.74 billion yuan for the half-year.
“The company has increased the provision for impairment on receivables from China Evergrande’s subsidiaries, associates and joint ventures,” the electric vehicle maker said.
A Hong Kong court had ordered the liquidation of real estate giant China Evergrande Group in January.
China Evergrande New Energy is expected to announce its half-year results on August 30.
The EV manufacturer had only produced 1,700 of its Hengchi EVs by the end of 2023. The Tianjin factory has suspended production since the beginning of this year.
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