With a market value of only 3.7 billion, China shenche suddenly announced a huge loss of more than 10 billion!

category:Finance
 With a market value of only 3.7 billion, China shenche suddenly announced a huge loss of more than 10 billion!


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Whether you can drive Lamborghini or not in your life depends on Zotye. I believe you are very familiar with such teasing. Under dispute, Zhonghua shenche Zhongtai automobile once made rapid progress. In 2016, the sales volume of Zhongtai automobile reached 330000, and in 2017, the annual sales volume of Zhongtai automobile still reached 310000.

However, after reaching the peak, Zhongtai auto fell rapidly. After entering 2018, the sales volume of Zhongtai auto dropped significantly: the annual sales volume was 230000, while the sales target for that year was 480000, less than half of which was achieved. After 2019, the sales volume of Zhongtai automobile will further decline. According to the sales data of the Travel Association, the sales volume of Zhongtai automobile (excluding Junma) brand in 2019 is only 116600, nearly 50% lower than that in the same period of the previous year.

Affected by the adverse news, Zhongtai Motor Co., Ltd. ended down 2.6% on June 19, with a total market value of 3.711 billion yuan, which means that the loss amount of Zhongtai Motor Co., Ltd. in one year is more than twice the current market value of the company.

A huge loss of over 10 billion yuan a year

On June 18, Zhongtai Motor Co., Ltd. is expected to make a loss of 10.8-11.5 billion yuan in 2019 and a profit of 800 million yuan in 2018, a year-on-year decrease of 1450% to 1538%; the basic earnings loss per share is 5.33 yuan / share to 5.67 yuan / share, a year-on-year profit per share of about 0.39 yuan.

Prior to that, in January 2020, Zhongtai automobile released a notice that it is expected to lose 6 billion to 9 billion yuan in 2019, a year-on-year decrease of about 850% to 1225%.

Shortly after the announcement, Zhongtai automobile received a letter of concern from Shenzhen Stock Exchange, in which four major issues were raised, including the basis and rationality of making up credit impairment loss in combination with bad debt provision policy, customer operation and performance ability.

Zhongtai also said that due to the market environment, some customers credit deteriorated during the reporting period, such as being listed in the dishonest list, not performing their legal obligations on time and being enforced by the court, resulting in poor repayment ability. According to the principle of prudence, the company reevaluated the future repayment ability of these customers with poor credit, and made up the bad debt reserves accordingly As a result, credit impairment increased by about RMB 327 million.

In fact, goodwill is an important reason for ZTEs loss. According to the main operating results of Zhongtai automobile in 2019 released in April, the main reasons for the loss of more than 10 billion yuan are the impairment of goodwill of more than 6 billion yuan and the operating loss caused by the sharp decline in sales volume.

It is understood that Zhongtai automobile acquired 100% equity of Yongkang Zhongtai Automobile Co., Ltd. in 2017, resulting in a consolidated goodwill of 6.579 billion yuan, more than half of the purchase price (11.6 billion yuan) at that time. Among them, the impairment of goodwill accrued in 2018 is 320 million yuan, and the impairment of goodwill accrued in 2019 is about 6 billion yuan.

Photo source: Zhang Jian, a journalist of every economy

One year off for base 1

Employee: I cant afford to eat without going

According to YEMA finance, Ying Jianren, born in 1962, went back to his hometown after graduating from high school. Like his parents, he embarked on the road of making a living by forging iron and walking in all directions In the early 1990s, Ying Jianren, who had been wandering in the Jianghu for decades, was not willing to be a blacksmith all his life. In the case of poverty and inexperience, he put down his face and bit his teeth, borrowed a lot of money from a dozen relatives and friends, and finally raised enough start-up capital of 80000 yuan, bought four small punch presses, and put them in his humble ancestral house of less than 100 square meters. A small family workshop, Yongkang Great Wall Hardware Factory, was established.

In December 1996, Ying Jianren and his wife Xu Meier jointly funded the establishment of Zhejiang Tieniu Industrial Co., Ltd., during which, with the rapid development of Chinas automobile manufacturing, the enterprise obtained rapid development. In 2003, his Tieniu group took over the listed company Jinma shares through acquisition.

In December 2016, the stock price of Zhongtai Motor Co., Ltd. (at that time, Jinma Co., Ltd.) was at a high of 18.18 yuan (former reversion), while the latest closing price was only 1.83 yuan. The stock price has dropped 90% since the high.

In the first five months of this year, sales of Zhongtai auto and other auto companies dropped by more than 90%, far behind the industrys average decline of 22%. Zhongtai has not released production and sales data for many months. According to the data reported by the media without official confirmation, the sales volume of Zhongtai in the first five months of this year was 3573, down 96% year on year.

The poor performance has increased the financial difficulties of Zhongtai.

Recently, media reported that Zhongtai automobile Hunan base issued a notice on the postponement of the companys employees holiday, saying that due to the downward pressure of the automobile industry and the serious impact of the epidemic, all employees in the base had a holiday from July 1, 2020 to June 30, 2021.

The notice also said that employees are encouraged to leave voluntarily, and a certain amount of incentive fund subsidies are given. It is also emphasized that after the holidays are over, all the employees will move to Xiangtan Tongrui company for work. If the employees cannot go to work according to the companys requirements, they will be treated as absenteeism. If the total absenteeism is three days, they will be treated as automatic resignation and the employment contract will be automatically terminated.

From October 2019 to February this year, the basic wage has not been received, and you cant afford to eat without going. A former employee of Zotye told geyser that most people are struggling with it, but it wont last long. An old employee of Zotye told geyser, Zotye is short of money.

The big shareholders become the losers

Its worth noting that because Zhongtai automobile cant pay back, its upstream battery supplier, BIC battery, has also been hit. Even new Zebang, rongbai technology, dangsheng technology and Hangke technology, which once had business relations with BIC battery, staged serial bombing in four listed companies.

Bick battery told AI finance and economics that the lawsuit against Zhongtai is still in the first instance.

Industrial and commercial information shows that since 2020, Zhongtai automobile has 19 court announcements, mainly including sales contract disputes and advertising contract disputes, and Zhongtai automobile is the defendant.

In addition, as early as October last year, Tieniu group, a major shareholder of Zhongtai automobile, was listed as the dishonest executor because of its ability to perform and its refusal to perform the obligations specified in the effective legal documents.

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Source: editor in charge of daily economic news: Yang Bin_ NF4368