In a recent telephone interview with the surging news, Wang Xiaolin denied all the charges against him.
In Wangs opinion, it is enough to prove that Jiangsu sailin has the technology to acquire foreign shareholders.
Wang Xiaolin said that Jiangsu sailin actually obtained 5.6 billion yuan of capital. In addition to the 3 billion yuan of factory construction and more than 1 billion yuan of daily operation in four years, only one billion yuan was left to develop molds and make parts and components. This also shows that foreign shareholders have technology injection, otherwise, this money is not enough for R & D.
Wang Xiaolin doesnt think he is particularly short of money, claiming that he values reputation more than money. His aim is to put Jiangsu sailin on the market and take away 10% of his own.
It is worth mentioning that Jiangsu sailin and Wang Xiaolin were involved in this storm. When Jiangsu sailin was preparing for the listing of the science and technology innovation board, reporter Qiao Yudong said that his original intention of reporting with his real name was that he found major problems in sorting out the companys historical legal compliance issues when preparing for the listing of the company.
On April 27, 2020, a microblog user who claimed to be Qiao Yudong, a former legal officer of Jiangsu sailin, reported Wang Xiaolin to be suspected of false technology investment and embezzlement of huge state-owned assets.
Tianyan information shows that the equity structure of Jiangsu sailin is: Nantong Jiahe holds 33.42%, Nantong Weimeng holds 17.76%, Rugao sarin holds 18.95%, Nantong shimai holds 18.8%, Rugao Jitai holds 11.07%. Among them, Nantong Jiahe is a wholly-owned subsidiary of Jiangsu state-owned enterprise Jiangsu GaoKai investment development group, which is wholly owned by Rugao municipal government (authorizing Rugao Economic and Technological Development Zone Management Committee to perform the duties of investor), and the other four shareholders are limited liability companies wholly owned by foreign legal persons. According to media reports, the actual controller is Wang Xiaolin.
Two days later, Jiangsu sailin issued a statement saying that Qiao Yudong continued to fabricate and spread false news, and that the company had investigated Qiaos criminal and civil liabilities through criminal charges and civil proceedings. Nantong Jiahe, a state-owned shareholder of Jiangsu sailin, also issued a statement saying that it will continue to support the development of sailin automobile. After the investigation and discussion of relevant experts and the evaluation of authoritative persons, the technology investment of Jiangsu sailin has been evaluated by an independent and qualified appraisal institution, and the degree of contribution conforms to the provisions of national laws and the articles of association of sailin automobile.
However, the report is not over. More than a month later, in June, Jiangsu sailin Rugao factory and Shanghai company were sealed up by Nantong intermediate peoples court. Nantong Jiahe was the applicant of the case.
On June 30, Nantong Jiahe issued a notice to the employees of Jiangsu sailin, saying that Wang Xiaolin, chairman, CEO and legal representative of Jiangsu sailin, fled from the United States and was lazy in performing his duties, which made Jiangsu sailin unsustainable.
At this point, Wang Xiaolin officially fell out with the state-owned shareholders, insisting that the pot was not in him. In his opinion, it was some leaders of Nantong Jiahe and Rugao City who disregarded the facts and used Qiao Yudong to falsely accuse him in the name of investigation, and framed him and foreign shareholders, resulting in the stagnation of the companys operation.
On the evening of July 2, Rugao Economic and Technological Development Zone Management Committee issued a general report, saying that in response to the recent report on Jiangsu sailin, the Management Committee of Rugao Economic and Technological Development Zone instructed Nantong Jiahe to conduct a comprehensive audit and verification on Jiangsu sailin according to the provisions of the articles of Association of Jiangsu sailin, and found that Wang Xiaolin and others were suspected of providing false supporting documents Using his position to misappropriate the huge funds of Jiangsu sailin and other issues and important clues. Nantong Jiahe reported the case to the public security organ in time. The public security organ has accepted the case and is carrying out investigation on the suspected criminal behavior of relevant personnel according to law.
Its not over yet.
On July 13, Wang Xiaolin announced in an internal letter that, in accordance with the provisions of the dispute settlement method related to the joint venture agreement, arbitration was filed in Hong Kong for the violation of the joint venture agreement by the state-owned shareholders and the Management Committee of Rugao national economic and Technological Development Zone.
The surging news also learned that on July 15, Nantong Jiahe had sent supervisors to Jiangsu sailin, and proposed to hold a shareholders meeting to remove Wang Xiaolin from the post of chairman of the board of directors, and elect Zhang Weiwei as the new director and chairman. According to the official report of Rugao, Zhang Weiwei is the director of the Management Committee of the new energy automobile industrial park in Rugao development zone.
In response, Wang Xiaolin told the surging news reporter that after receiving the notice from the state-owned capital on July 24, the American lawyer of Jiangsu sailin foreign shareholder holding company issued a strongly worded lawyers letter to the shareholders meeting proposed by the supervisor, proposing that the state-owned shareholders had violated Chinas company law and the articles of association, and cited the United States code to warn against possible illegal deprivation of intellectual property rights of American shareholders Individual shall be investigated for criminal responsibility.
As of press release, Nantong Jiahe and Rugao Economic and Technological Development Zone have not responded to the requirements of the surging journalists, nor have they made the latest response to Wang Xiaolins recent interview remarks and the arbitration case in Hong Kong.
The following is the content of Wang Xiaolins interview
On false technology investment
Wang Xiaolin: in my last interview, of course, I was tampered with by some reports. I said that if the true technical contribution is false, I should be the plaintiff, and we should sue Steve sailin together. But this is a hypothetical sentence, because it does not hold water.
First of all, you cant cheat, because it has layers of evaluation and capital verification. When foreign investors come to China to invest, especially with intellectual property rights, there is a whole set of procedures for assets evaluation, delivery, and capital verification after delivery. In terms of laws and regulations, you cant cheat, because there are several different organizations to evaluate, and each department will also check.
He was right about Wanlongs statement that it had not accepted any assessment from Jiangsu sailin and four foreign shareholders. We signed a letter of commitment with Bandung in December 2015 and signed a contract in January 2016 to entrust him to evaluate the value of our models. In January 2016, Jiangsu sailin and four foreign-funded companies were not established, and Wanlong accepted the entrustment of our American company.
In addition, the appraisal report of Wanlong is not the appraisal report of our asset investment, but the basis of negotiation between us and Nantong government. In fact, there are three appraisal companies in the whole investment process, and two other companies are responsible for the investment and capital verification. How can you cheat under such a strict legal process.
Second, in fact, we have more than 300 people. If we dont have the technical input of Mr. Steve Selin from overseas, will it be possible to produce three cars in three years, not three ordinary ones. Even Maimai, which has been criticized by everyone, also won the prize in China new energy vehicle Grand Prix in 2019. In October last year, we conducted a PK with electric vehicles from 22 manufacturers, including Tesla Model3, modelx and Weilais ES6 and es8, ranking second in comprehensive performance. Super race S1 also participated in the international GT competition, defeated McLaren, Ferrari, Mercedes Benz, BMW, etc. SUV has taken part in Chinas three alpine tests last year. Normally speaking, all tests will be launched this year.
Surging news: is there a big gap in the results of the three technology assessments?
Surging news: Jitai Maimai mycar has been evaluated as 110692 million yuan. Qiao Yudong reported that its actual value is only 20 million yuan. There are also doubts that the mycar you acquired at the beginning is a technology that has been eliminated. How do you view these doubts?
Wang Xiaolin: actually, its not 20 million yuan. Ten years ago, I bought a Hong Kong company called euauto with 16 million yuan, because we value its appearance design. Its a bit cute. That car is just a battery car, using batteries, not lithium batteries, or a low-speed car.
After the acquisition, Greentech Automotive (GTA) invested $182 million to make mycar into a high-speed car from 2010 to 2015. The chassis power inside the high-speed car has nothing to do with mycar, which was purchased in Hong Kong at the beginning. It only uses its shape design. In fact, the applicability of the design has also been changed. The original appearance of Maimai and mycar is quite different.
In 2016, the reconstructed mycar was appraised as more than 1.1 billion by several evaluation companies in Rugao.
Surging news: who are the actual controllers of Jiangsu sailins four foreign shareholders?
Wang Xiaolin: there are three wholly-owned subsidiaries of Zifu holding company. Zifu holding was founded by me in 2006. It is not a shell company. I have investment and the company has value. In 2015, after Steve sailin brought several models to Zifu holdings, he had 1 million shares, and I only had 100 shares. After the company went public, I wanted to have 10% equity. However, I have reached an agreement with him that I have 100% management rights over Zifu holdings, because I told him that he is a technician and does not understand management.
Another Rugao Jitai was registered when I was the actual controller of GTA in 2015 and 2016. Later, GTA encountered class action in the United States because of the EB5 immigrant investment program, so it was unable to finance and had to go bankrupt. After the bankruptcy and liquidation of GTA, all the shares of encore wealth, a company established by EB5 investors, were acquired. Rugao Jitai, as a subsidiary of GTA, also owned all the equity of EB5 investors. These things were completed in 2019. So I not only have no control over Rugao Jitai, but also have been sued by his shareholders.
Surging news: you recently said in an interview that the technology of three SUV models was provided by Steve sailin and his team. Do you have relevant design information?
Wang Xiaolin: Im sure I have information about the design of car models. If Steve sailin didnt have the technology to give me, I wouldnt give him most of the equity in the company Ive been running for 10 years.
Steve sailin has provided more than three models. We have a lot of models, including S3, S5, C-class SUVs and medium and large sedan models, but only three models are given to Rugao. Thats why I said in an interview with other media that Jiangsu is the end of your business, and sailin will not be finished because we have technology and products. If I dont cooperate with you, I will still do it. What should we do in the United States? If there are other opportunities in the future, I will not rule out going to China for business, but I will not deal with such people who do not abide by the contract. This is for sure, and the loss will be greater.
Surging news: how do you think that many employees of Jiangsu sailin think that the technology is mainly developed by them, and that they have never read the technical data of American companies?
Its nonsense to have never seen the technical data of the United States. During the capital verification in 2016, Steve sailin and I handed over four huge hard disks together with all the information to the Chinese side. The people who said that were either too ignorant or not technicians at all. Automobile manufacturing is a big project. Every engineer will only know what is in his small piece, and wont let him see everything. If any employee has access to all the technology of a company, the company is no longer competitive, and the employee can take everything away.
Wang Xiaolin: first of all, it costs 3 billion yuan to build a factory. The annual production capacity of sailin factory is 150000 vehicles, which are all robots from ABB and KUKA. The automation degree reaches 96%. The whole control system is controlled through the cloud. This factory will not be abandoned. I think it can become a model of the whole Jiangsu automobile industry, but now it has become a garbage. The small factory is transformed from the original Yingtian farm machinery factory, and the degree of automation is not low. There are also senior management from BMW Brilliance.
The local government also asked us to save Yingtian today, the youth car tomorrow, Daizhuang the day after tomorrow, as well as to buy talent apartments and take care of local enterprises. All these are tears.
Secondly, four years of daily operation, including advertising, wages and social security of more than 1000 employees, rent in Beijing and Shanghai, and market expenses add up to more than 1 billion yuan.
In the end, I really only have about 1.4 billion left to build cars, open molds and complete parts and components. Among them, we spent hundreds of millions of Maimai molds, and then we had no money to open the molds for SUV models. We only completed part of them. The cost of parts and components for an SUV is about 136000. To make 10000 SUVs, the cost of parts and components needs 1.36 billion, which is not counting the cost of several billion mold opening. We didnt make a car. To put it bluntly, we didnt have money. This also shows that such a small amount of money is not enough for R & D at all, it is only enough for the matching of local parts and regulations.
Surging news: I dont have money to build a car. How can I hear that the night of sailin birds nest costs hundreds of millions?
Wang Xiaolin: actually, it only costs 60 million yuan. We only paid 40 million yuan, and we still owe 10 million yuan.
Surging news: how to respond to the companys reimbursement of even their own house decoration money?
In fact, I dont have a house or a car in China, so I cant talk about decoration.
Wang Xiaolin: first of all, Hongming culture is not an independent company. It is just a shell company outside of Jiangsu sailin. Hongming culture is only registered with my wifes ID card. The companys finance has always been controlled by Jiangsu sailin. The funds related to Hongming culture are only 5 million yuan for Chinese racing drivers and 10 million yuan for part-time meetings, which are normal expenses related to the brand.
As for Li Chaohui, a legal person of Shenzhen jinhongyuan, he and I are just alumni. He helped us to do the Financing Consultant for us. He helped Jiangsu sailin get the investment of Hunan Baiyuan, and the capital exchange with him was his financing consultant fee, which was agreed by the board of directors.
The member of the Standing Committee of Rugao municipal Party Committee requested that the American company should be taken over through financial institutions. At that time, he was going to set up a factory in the United States, because Jin Hongyuan in Shenzhen had a deposit to purchase the physical assets of the United States, including land, factory buildings and equipment. However, this was repeatedly requested by a leader of the Standing Committee of the Rugao municipal Party committee. This matter has been mentioned from February last year to August last year.
About whether we are seriously building cars?
Wang Xiaolin: I was a partner in a large law firm before I was 40 years old. I won the law achievement award from the U.S. Congress. I was very disappointed when I reached my original goal. Then I thought about what to do next, and then I went to Peking University and Tsinghua law school to teach for a semester. On my 40th birthday, I felt that I was too young to teach, so I wanted to make something left.
I like cars very much, and then I met Marco liv, the chairman of the Democratic Party of the United States at that time, and later my former boss. He said that he wanted to develop new energy, so we set out to make GTA and electric cars. After Marco liv went to politics again, I had to take over his chairman and continue to make cars. By chance, knowing that China welcomed car making, I asked Steve sailin to build a factory in China. Then Steve sailin took out a series of cars designed for pressing box bottom to China.
Surging news: why choose Rugao?
Wang Xiaolin: at that time, Sichuan, Guangdong, my hometown Changsha and Zhejiang were all looking for me. Guangdong had to give up because of the cancellation of its production qualification. Zhejiang wanted to cooperate with me on the qualification of Pang Qingnians car, but Pang Qingnian and Zhejiang didnt get close to each other. Pang Qingnian later said that if you come to Rugao, I will give you my qualification.
In fact, Rugaos conditions are the worst among various governments, but they can solve the problem of qualification. I think I do finance by myself. If we solve the problem of qualification, we have technology and brand. I can get financing from outside. So Rugao is because this qualification attracted us to the past, but so far I have not got the qualification.
Surging news: will you regret going back home to build cars?
Wang Xiaolin: of course I regret. I even regret why I didnt wait to find a better place? But its no use taking regret pills.
If I make a review, I may attach great importance to the contract. But the lesson learned from this is: first, we should have a strong foundation to do something. Rugao does not have a decent automobile company in the industry, and its original foundation is relatively weak. Moreover, it will cost a lot of money to build cars. It is impossible to build cars with billions of dollars. Rugao local finance can not afford to bear, and the resources available are limited. If leaders change, everything will change.
Wang Xiaolin: at present, China has structural overcapacity, and the capacity of low-end cars is surplus. Todays consumers pursue consumption upgrading, in fact, put forward higher requirements for commodity suppliers: more affordable prices, better performance, more functions. In this case, enterprises without core technology will definitely be eliminated.
Second, new energy vehicles are too full. Due to the national new energy policy, many new energy vehicle factories have been blindly set up, resulting in overcapacity. Local funds are limited. If there are only two new energy vehicle enterprises left, they may develop immediately. The financial support is not enough, the normal new energy subsidies are cancelled, and many people are rushing to subsidize the past, which leads to the collapse of a large number of new car making forces.
Surging news: if this incident is not reported, do you think Jiangsu sailin will be eliminated like some new forces of car making?
Surging news: is it true that 3 billion yuan was raised in May?
To be honest, we are not short of technology and products. What we lack is money. Through the efforts of the past year, it is possible that a large amount of funds will be in place in May this year. Until today, if we can prove that it is a false accusation and bring those who falsely accuse me to justice, I dare say that there are still investors willing to invest after the withdrawal of state-owned assets.
Surging news: in addition to the lack of money, what are the reasons for Mikes delay in mass production of SUV?
Surging news: whats the sales volume of Maimai? What are the reasons for the poor sales?
Wang Xiaolin: we sold 31 cars on tmall in 30 days. In fact, it was just a test activity in the market, and there was no real sales. This year, we signed an order of 15000 units, which is a real order, not a letter of intent. However, because of Rugaos freeze, the order was lost. The 15000 vehicles may be our real sales volume. Customers asked us to provide hundreds of them in May.
I agree with the view that the price is too high. The cost of Maimai is very high, including the material, electronic control, multi link suspension system, motor and battery are relatively expensive. If you buy it as a low-end electric car, the price is too high. But our performance is much better than that of Mercedes Benz smart, and the car that sells 300000 yuan cant match us.
Wang Xiaolin: in fact, production was not supposed to have been made years ago. We should have determined production by sales. It is reasonable to calculate the monthly production according to the order. We had limited funds and could not produce many cars on hold. The original strategy is like this. But last year, under the condition of tight funds and usury, Rugao city leaders asked us to guarantee the qualification of youth cars to produce 1200 cars. We were very reluctant.
About future plans
Surging news: Rugao has communicated with you and asked you to cooperate with the investigation?
I will fight the lawsuit. If the public security department files a case and the procuratorate brings a public prosecution, I will fight this lawsuit for ten years and eight years, because I know very well that I have not embezzled a sum of money from the company.
Surging news: what do you think is the reason for the change of attitude before and after Jiahe in Nantong?.
Wang Xiaolin: on May 29th, I had to take 42 official seals, including the financial seal and the legal representative seal, and then I refused. But he forced some of our executives to take away some of the seals they had in their hands, including the legal representative seal.
Surging news: in your interview, you mentioned the contradiction between shareholders for a long time. What are the contradictions?
Wang Xiaolin: we think we should do our job, but in Rugao, we should take care of all kinds of relations. If we want to buy a broken factory, we should also give it to a township enterprise to build it. Ive been abroad for 30 years, and I hate it. As a state-owned shareholder, you own your equity and fulfill your contract. Why do you interfere so much with me? But they think that I am disobedient.
Im also worried about the qualification. We came here because of the qualification. As a result, I didnt get the qualification today. I have some opinions on this matter.
There was also financing. At that time, he said that he would provide 3 billion equity, 4 billion working capital guarantee, and the discount rate should not exceed 3%. At the end of the 4 billion yuan, we found other investment institutions and failed to negotiate. He refused. He vetoed several billion creditors rights with interest rates ranging from 6.5% to 8.5%. Finally, the company had no money, so he had to ask him. As a result, he got 10% of the interest, and we had to mortgage the foreign equity. Every time you still have to pay wages and mold next week. If you dont mortgage, the money wont be called to you. Under such pressure, will the relationship between shareholders be good? Its not going to be OK.
Surging news: for Nantong Jiahe, what else do you plan to do in addition to the arbitration recently filed in Hong Kong?
Wang Xiaolin: I have two appeals. I have to restore my reputation, and it has also caused great harm to sailin brand. How should he deal with the relationship with foreign shareholders.
As for other aspects, I am neither involved nor willing to see that I will not do anything unfavorable to China, but this matter has been obviously out of control. Next, you will see that the American shareholders, not me, I have no ability. The American shareholders are pushing for sanctions.
Wang Xiaolin: its meaningless to return home. We cant solve the problem of sailin in Jiangsu in Rugao. We cant say that. Lets see what the final conclusion of Rugaos leadership is. If I go back now, whats the point? Hes all failed for you, and all of them have been put on criminal record. So those who now say on Weibo that you have the ability to come back and hate them, I think these people are not stupid or bad, but stupid and bad.
I want to reason, there is no need to go back to it.
Surging news: will we continue to build cars in the future?
Wang Xiaolin: of course I have to do the car. Jiangsu sailin has no car, but sailin still has it. Now sailin is doing well in the United States. Some business cooperation with us will continue. From this point of view, I am full of confidence in sailin products. I havent changed much about the issue of making cars in China. I dont think Im old enough to retire. Im sure I still have some ideas. I dont think there are any high-end cars in China, and no company has come up with it, and joint ventures are not interested in doing it in China. The technical features of sailin are high-performance. When it comes to high-performance, it will not be a popular product. It is impossible to produce 500000 or 1000000 a year. It is possible that it can make 100000. There may be a group of young people who are interested in this kind of car and like to operate the free power. I believe that there will still be such opportunities in China. I must be sure that Rugaos business has come to light before I can fly back to build a car by myself. Wang Xiaolin and Steve sailin: foreign capital didnt take away 5.6 billion yuan and burned up Jiangsu sailin incident tracking: Wang Xiaolins first response to on-the-spot investigation after being put on criminal record_ NF
Wang Xiaolin: of course I have to do the car. Jiangsu sailin has no car, but sailin still has it. Now sailin is doing well in the United States. Some business cooperation with us will continue. From this point of view, I am full of confidence in sailin products.
I havent changed much about the issue of making cars in China. I dont think Im old enough to retire. Im sure I still have some ideas. I dont think there are any high-end cars in China, and no company has come up with it, and joint ventures are not interested in doing it in China. The technical features of sailin are high-performance. When it comes to high-performance, it will not be a popular product. It is impossible to produce 500000 or 1000000 a year. It is possible that it can make 100000. There may be a group of young people who are interested in this kind of car and like to operate the free power.
I believe that there will still be such opportunities in China. I must be sure that Rugaos business has come to light before I can fly back to build a car by myself.