Sailins failure in making cars: it burned 6.6 billion yuan and sold 31 vehicles

category:Finance
 Sailins failure in making cars: it burned 6.6 billion yuan and sold 31 vehicles


In June 2020, there are no workers in sailin plant area, and the production line is in a state of stagnation. Photography / Jiang Zhou

Jiangsu sailin car building lost

Our reporter / Su Jiede Xu Dawei

Issued in issue 959 of August 10, 2020

It has been more than 100 days since the scam of sailin automobile was exposed.

On April 27 this year, Qiao Yudong, former senior legal manager of Jiangsu sailin Automobile Co., Ltd., reported Wang Xiaolin, chairman, CEO and legal representative of the company in real name, and questioned Wang Xiaolins suspicion of false technology investment and misappropriation of huge state-owned assets.

Qiao Yudongs accusation described an international fraud with empty hands: the shareholders of four foreign-funded enterprises controlled by Wang Xiaolin actually invested 6.6 billion yuan in false technology to defraud the shares of sailin company and obtain the control right of the company. However, Nantong Jiahe, the only state-owned shareholder of sailin company, has provided a total of 6.6 billion yuan, and Wang Xiaolin has not contributed a cent, but the performance of the state-owned assets investors duties in sailin company can not be carried out because of Wang Xiaolins strong obstruction. Wang Xiaolin even does not allow the state-owned shareholder Nantong Jiahe to appoint or remove an executive of Jiangsu sailin.

The spat between the two sides has been escalating. But what Wang Xiaolin does not deny is that sailin has already spent nearly 6 billion yuan: 3 billion yuan for building an automobile factory; 1.4 billion yuan for personnel and marketing expenses; and the rest is used to build cars. However, in Wang Xiaolins view, the money is far from enough. Wang Xiaolin, who is far away in the United States, told China News Weekly that among the new forces of car making in China, we are the most cost-effective, because I have financial control experience. Without 10 billion yuan of investment, its not called car building.

According to public data, Rugaos general public budget revenue in 2019 is 7 billion yuan. According to Qiao Yudong, Rugao government has already provided 6.6 billion yuan of real gold and silver for the sailin project alone.

It took four years to build the car, but within 100 days, sailin automobile died suddenly. The account of Xilin automobile has been frozen. The two factories in Rugao and the Shanghai Branch of sailin automobile have been sealed up by Nantong intermediate peoples court. Senior executives and employees have left one after another, and sailin collapsed. In the United States, Wang Xiaolin and Rugao government confronted each other, accusing each other of the reasons for the companys suspension.

I dont have any responsibility! Now Wang Xiaolin, who is far away in the United States, refuses to return home and is known as Jia Yueting of the automobile industry. Jiangsu sailin is no longer available, and the rest is to investigate the responsibility for this matter, he said

Sailin auto factory is now empty, and security guards in the factory refuse to enter. Photographer / reporter Xu Dawei

Technology investment luoshengmen

In the past four years, the Star Auto Company in Rugao, a county-level city in Jiangsu Province, has spent an average of 1.5 billion yuan a year to build cars. However, only one micro electric vehicle called laolaolaole has been produced in mass production. Until this year, Qiao Yudong, senior legal manager of Jiangsu sailin, reported Wang Xiaolin, the chairman of the company, in real name. He was suspected of providing false documents and embezzling huge funds of the company by taking advantage of his position, which ignited public opinion.

Qiao Yudong said that Wang Xiaolin invested 5.5 billion yuan and 1.1 billion yuan in Jiangsu sailin for technology with a cost of US $500000 and US $20 million, respectively, resulting in the loss of billions of yuan of state-owned assets. Among them, US $500000 refers to the license obtained from sailin in the United States, mainly involving luxury cars and SUVs, while the technology of $20 million refers to the intellectual property rights of micro electric vehicles.

According to Tianyan data, Nantong Jiahe is a company wholly owned by Rugao Economic and Technological Development Zone Management Committee, holding 33.4% of Jiangsu sailin. The rest of the equity belongs to foreign shareholders. Zifu holding group registered in British Virgin Islands holds 55.5% shares through Rugao sarin Hybrid Electric Vehicle Technology Co., Ltd., and each company owns an intellectual property right of SUV; Weimeng industrial group, registered in the United States, holds 11% of shares through Rugao Jitai electric vehicle Technology Co., Ltd., which owns micro electric vehicles Intellectual property.

Qiao questioned that the actual value of technology investment is far lower than the evaluation value. For example, he said that the core technology of micro electric vehicle is the result of the efforts of all the engineers of Shanghai Research Institute of sailin company. It is obviously against the basic principle of good faith to regard the technology with mass production capacity at the end of 2018 as the technology existing on the benchmark date of December 31, 2015, and according to this, the price is 1.1 billion yuan

In response, Wang Xiaolin said in an interview with China Newsweek: our intellectual property pricing has been evaluated by three appraisal companies. Two days after Qiao Yudongs open letter was issued, on April 29, Nantong Jiahe technology investment and Development Co., Ltd., the only state-owned shareholder of Jiangsu sailin, issued a statement in support of Wang Xiaolin: the technology investment involved in the establishment of sailin automobile has been investigated and demonstrated by relevant experts and evaluated by authoritative persons, and has been evaluated by an independent and qualified appraisal institution, Its capital contribution procedures conform to the provisions of national laws and the articles of association of sailin automobile.

However, this statement did not properly explain the query, but let the technology investment assessment fall into the luoshengmen.

According to the materials provided by Qiao Yudong to China News Weekly, the assets appraisal report is made by a third party entrusted by the foreign-funded company actually controlled by Wang Xiaolin, rather than by Rugao government, the investor. The three companies are Shanghai Zhonghua Asset Appraisal Co., Ltd., Wanlong (Shanghai) Asset Appraisal Co., Ltd. and Zhonghuan Songde (Beijing) Asset Appraisal Co., Ltd.

Previously, Wang Xiaolin repeatedly said that the technology of American sailin includes luxury cars, SUVs and a micro electric vehicle. However, the evaluation reports issued by the three companies show that the main body of the report is less than 20 pages, with only four models and no luxury cars. Among them, the intellectual property value of the mini electric vehicle named Jitai u00b7 Maimai u00b7 mycar is RMB 1.107 billion, and the intellectual property value of the other three models marked as sailin brand SUV is RMB 1.88 billion, RMB 1.89 billion and RMB 1.77 billion respectively, with a total valuation price of RMB 6.65 billion. Moreover, the itineraries of the assessment teams of the two appraisal companies are highly consistent, and the on-site investigation time is on the same day, and both lasted for a week. Such a coincidence is hardly beyond doubt.

It is worth noting that these appraisal reports point out that the estimated amount is based on the forecast data provided by the entrusting party. In other words, the client estimates the economic benefits to be generated in the next few years. Moreover, the report also stressed that the assessment does not take into account the assessment base date, Chinese mainland production still need to carry out domestic components, domestic regulations, local manufacturing vehicles, domestic collision and emission calibration and other matters on the valuation of the impact.

With the event fermenting, Wanlong appraisal issued a statement denying that it had ever issued the above asset appraisal report. On May 20, Shanghai Wanlong issued a statement saying that it had never issued the appraisal report on intangible assets to be invested by Rugao Jitai, nor any asset appraisal report on intangible assets entrusted for appraisal held by Rugao Jitai, and had never been entrusted by four non-state-owned shareholders of sailin Automobile Co., Ltd. to issue any assignment on the intangible assets to be contributed by Rugao Jitai He asset appraisal report.

As for Rugaos overall acceptance of Wang Xiaolins unilateral asset appraisal, some people in the industry are very puzzled. Luo Zhiyu, director of domestic and overseas investment, financing and M & a department of Jingshi law firm, told China News Weekly that Nantong Jiahe, the investor, could actually take action very early. Without the consent of major shareholders, it should conduct a re evaluation on its own or apply for judicial appraisal of assets. As a cash investor, we should evaluate or identify the capital contribution of the non cash investor, review the equity evaluation price, and reduce the risk.

But Qiao Yudong questioned in the letter that the technology of sailins car was not from the United States, but was being developed by the companys technicians. Qiao Yudongs statement is supported by the technical personnel of Jiangsu sailin. Tian Ming (pseudonym), the core R & D personnel of the new energy automobile Department of sailin SUV project, told China News Weekly that if the American sailin provides mature models, it means that these models have reached the data freezing stage and can realize mass production. However, judging from the R & D Progress of Jiangsu sailins most important SUV model, the so-called American model is not mature. When we took over, we updated the vehicle platform by 80% or 90%. At present, the data used by the engineering sample vehicle is mainly done by our team. Tian Ming said that their team took over the project in June 2018, and the R & D director of the project has replaced three people in a row for more than a year.

In the view of auto analyst Zhong Shi, the source of Xilins technology is more like a hodgepodge, there is a bit of technology in the United States, a little bit in the companys research and development, please design companies to do some. He said that this is different from the production mode of domestic automobile enterprises. It takes ten years for the auto enterprises with their own brands to change from imitation to their own brands; while for joint ventures, others bring all the technologies, models and other technologies, and the joint venture factory is equivalent to a substitute factory for the production in the domestic production site; the new potential for automobile manufacturing refers to the pure electric vehicle manufacturing enterprises. According to Zhong Shi, none of the three is strange.

The so-called American sailins automobile technology is illusory. Wang Jun (pseudonym), the core executive who has left from Jiangsu sailin, has worked in a large domestic automobile brand management position for many years. Later, he was regarded as a senior expert in the industry by Rugao municipal government and Wang Xiaolin, and was invited to serve as the main business management post. He said bluntly: I have been a car for so many years. What car have I never seen? But sailins system has never had drawings, specifications, data, verification reports, design specifications, component design specifications, prototype cars, nothing.

Wang Xiaolin kicked the ball to Steve sailin, the founder of American sailin automobile, for his technical query. The latter not only owns vehicle technology, but also is the actual controller of Jiangsu sailin foreign shareholders.

Steve sailin thought that he was hurt when he was interviewed by Beijing News. He only invested in three models and platforms of Jiangsu sailin, which was worth more than 1 billion US dollars, which did not include the brand value and other proprietary technology. Chinas evaluation companies only priced 800 million US yuan (5.5 billion yuan), which is a very cost-effective price for Rugao, and Rugao got it The best deal in the history of cars.

The joint venture mode of Jiangsu sailin is that the local government will provide money and the US side will provide technology, and then both sides will jointly seek third-party financing. Wang Xiaolin believes that the US side was a technology investor at the beginning, with a technology investment value of 6.652 billion yuan, accounting for 66.52% of the joint venture companys shares. In the joint venture agreement, the US side has no obligation to contribute in cash.

Wang Xiaolin told China News Weekly that he was not a technology investor but a professional manager. He further explained that I dont know whether sailin has technology in designing cars. The only relationship with me is that I have 10% success fee (equity) when the company is listed.

Burning money to build cars or embezzling state-owned assets?

How much did sailin spend to build the car?

According to Qiao Yudongs complaint letter, Jiangsu sailin obtained 6.6 billion yuan from Nantong Jiahe, including 3.4 billion yuan in currency, 1.2 billion yuan in mortgage for production equipment and 2 billion yuan in equity pledge. Tianyan data shows that both mortgage and pledge loans occurred in the second half of 2019, with a total equity pledge amount of 2 billion yuan, which is consistent with Qiao Yudongs said amount, while the amount of production equipment mortgage is not specified.

Wang Xiaolin said that the equity investment in the state-owned assets platform of Rugao local government was 3.3 billion yuan, plus 2.5 billion yuan of working capital support, with a total of 5.8 billion yuan. Hunan Baiyun Investment Development Co., Ltd. has also invested 210 million yuan, but has not yet completed the equity change. Of the 5.8 billion yuan, nearly 200 million yuan has been given to Nantong Jiahe for interest, and the total funds used are 5.6 billion to 5.7 billion yuan.

Where did the money go? Wang Xiaolin said that it took 3 billion yuan to build an automobile factory; about 1.4 billion yuan was spent on personnel and marketing expenses; and the rest was used to build cars, only about 1.2 billion yuan is left, and the 1.2 billion yuan still needs to open molds and make parts matching.

In Wang Xiaolins opinion, the money is far from enough. He hopes to get more capital through equity and bond financing. Many investors are ready to invest in sailin, but Rugao government does not agree. After Baiyun invested 210 million yuan, we have urged many times to change the equity. However, according to the articles of association, the consent of the state-owned assets must be obtained for the change of equity, but the state-owned assets will not do it. Wang Xiaolin said: now we want to understand, not to say 210 million, as long as 100 million come in, the veto power of state-owned assets will not be one vote.

In 2017, Jiangsu sailin once went to various places for financing, and Wang Rongjin, partner of Jinbang capital, an investment institution, also contacted him: I was quite curious at that time. I didnt hear of this company, so I talked to them. Their style is set very high. They set their mouth to the standard of Tesla, but they didnt make a product. They just put a few old peoples cars there. I dont think its reliable.

Wang Rongjin told China News Weekly that at a meeting in Shanghai, he once met a staff member of the Investment Promotion Department of Rugao government. He told me that many people in Rugao have great opinions on the factory, and even think that it is not worth a billion yuan.

This is also a common question of the outside world: why burn down 6.6 billion investment to build a low-speed micro electric vehicle?

Wang Xiaolin once said that according to the strategic planning of sailin, the super racing S1 was first launched, and then the SUV model was put into mass production. Then in order to meet the double integral, the city electric vehicle Maimai will be launched, and then pure electric SUV and hybrid SUV will be made.

After the exciting slogans, what Jiangsu sailin really achieved in mass production and launched into the market was the A00 class Maimai with a span of more than 300 kilometers, which was criticized by the market as a kind of old mans music for doing super running.

Wang Xiaolin does not deny that the sales of Maimai are very poor. Last year, we built a tmall store on the 11th day of last year, and sold 31 cars, almost one car a day. In May this year, we signed a sales order of 15000 vehicles. According to the plan, we need to deliver 300 vehicles in June, but in the end, all assets including vehicles were frozen and unable to be delivered.

In other words, more than four years of car building cost more than 6 billion yuan. The so-called mass production Maimai has only sold 31 cars so far.

Its too fast to spend money. Wang Jun, a former executive, found that the company was spending money like water, but the money was not used on the edge.

Compared with extravagant marketing spending, the companys R & D funds are not abundant. Tian Ming said that SUV development generally takes three rounds. In order to save costs, only two and a half rounds have been done. When Tian Mings team took over, sailin SUV had already produced a prototype car. He still remembered seeing the car for the first time: it looks very much like an old Buick in the 1980s. In his opinion, this kind of old model car actually costs a lot of money. Its too soon to build this kind of sample car.

In Qiao Yudongs report, another important accusation is that Wang Xiaolin possessed state-owned assets through various means. For example, the total amount of payments made by Jiangsu sailin to Shanghai Hongming culture media Co., Ltd. (hereinafter referred to as Hongming Culture), which is 100% controlled by Wang Xiaolins wife congchao, is far more than 100 million yuan; there may be improper capital exchanges between Jiangsu sailin and Wang Xiaolins classmate Li Zhaohuis Shenzhen jinhongyuan Investment Management Co., Ltd.

Wang Xiaolin responded to the media that Jiangsu sailin only paid more than 10 million yuan to Hongmings cultural account, of which about 10 million yuan made a documentary film America on the wheel, and there were several million yuan in case of emergency. The main participants in this documentary are Wang Xiaolin.

Wang Xiaolin explained that because he did not hold a Chinese identity card and could not register, he used his wifes name to register. Hongming cultures bank account was all in the hands of Jiangsu sailin. In addition, he and Li Chaohui are only alumni rather than classmates. In sailin, I have no other income except salary. The companys financial system is very strict. I never manage any money.

On July 2, Rugao municipal government made a positive statement on this matter. On July 2, Rugao Economic and Technological Development Zone Management Committee issued a situation circular saying: it was found that Wang Xiaolin, chairman and chief executive officer of Jiangsu sailin, and other people were suspected of providing false supporting documents and misappropriating huge funds of Jiangsu sailin by taking advantage of his position and other issues and important clues. Nantong Jiahe reported the case to the public security organ in a timely manner, and the public security organ has accepted the case and is carrying out investigation on the suspected criminal behavior of relevant personnel according to law.

Wang Xiaolin denied it. Rugao said that I misappropriated a huge amount of funds. The whole financial affairs of Jiangsu sailin are in accordance with the financial management system of modern enterprises. There is not only finance but also audit. Rugao state owned assets also appointed an accountant. In fact, the expenditure of Jiangsu sailin capital needs the approval of Rugao state-owned assets after being signed by CFO and me.

He told China News Weekly that before 2017, the official seal of Jiangsu sailin was managed by Rugao government, and then it was given to sailin, and sailin began to manage its own money. In 2018, Rugao will send people to attend the companys meeting, record the progress and report to Rugao Economic and Technological Development Zone. Wang Xiaolin has always stressed that the state-owned shareholders have the ability to control the major affairs and financial affairs of Jiangsu sailin, and the state-owned shareholders have one vote veto right on the board of directors. The state-owned shareholder also sent an accountant to sit on the third floor of our company. After the chief financial officer and the chairman of the company have signed, the accountant will not be able to type out the money if he does not sign. Wang Xiaolin said.

I embezzled the public funds. Which account has the money been transferred to? To check level by level, to find out whether the last account has anything to do with me. If not, it is a false accusation. Wang Xiaolin believes that Qiao Yudong cheated 6.6 billion yuan in the report, which is a serious misleading, 6.6 billion yuan is the equity value, we did not take any money In the current state of the company, the value of this equity is zero.

However, former China executive Wang Jun told China News Weekly that Jiangsus Sai Lin was actually Wang Xiaolin has the final say, and the financial management was rather confusing. He remembers that in two months, the wages of the employees increased sharply, and the total wages of 34 million yuan, as usual, suddenly increased to 89 million yuan.

The company didnt increase the number of employees, didnt pay wages in arrears, and it wasnt a bonus that was reissued. However, Wang Jun felt that something was wrong. Later, he learned: Wang Xiaolin often pays wages to himself and his wife. Every time, he pays out millions of dollars. Whats more, the company also pays 89 million yuan to the United States every month. Although Im in charge of finance, I still dont know who the money was sent to.

A brief honeymoon

Wang Xiaolin, now trapped in the whirlpool of car making, was a talent that Rugao tried to attract a few years ago.

He told China News Weekly that Sichuan, Guangdong, Zhejiang and other places had invited him to visit. Among the local governments competing for sailin, Rugao, a county-level city in Jiangsu Province, is the most active and offers the most favorable conditions.

Rugao is located in the north wing of the Yangtze River Delta and adjacent to the Yangtze River in the south. Rugao has three streets and 11 towns, including Rucheng, Chengbei and Chengnan. In 2019, the GDP will be 121.5 billion yuan, ranking first among the top 100 counties in China.

Ma Jinhua is one of the main promoters of Rugao new energy automobile industry. Ma Jinhua said in the car that if a project like yours is implemented, it must be a provincial key project. Its nice to chat in the car, but its really not so good when you come to the development zone. In the development zone at that time, there were only a few enterprises such as land ark and Kangdi, and there were no serious large automobile factories. Wang Xiaolin recalled that the development zone at that time seemed a bit desolate.

In December 2015, Rugao was led by the mayor to organize automobile experts to visit the United States. After returning to China, the experts invited by Rugao decided to introduce the project. According to the information provided by Qiao Yudong, one of the experts named Lei Yucheng said: entrusted by Rugao City, Jiangsu Province, and entrusted by Tongjie technology, I, as the representative of the expert group, made an investigation on American sailin International Automobile Company from December 18 to 22, 2015 The company is an excellent automobile technology and high-end brand manufacturing company.

In fact, Lei Yucheng and Wang Xiaolin have known each other for a long time, and they have also worked together to build cars. In 2009, Wang Xiaolin, together with Lei Yucheng, held a conference on the release of super platform and cooperation intention in Shanghai. During the conference, Wang Xiaolin announced his own car production plan, which plans to put 150000 vehicles into production in 2011 and reach 1 million vehicles by 2015. However, Wang Xiaolins plan to surpass Hondas car building plan was not followed by much thunder and rain.

Although there is no successful automobile investment experience, but this does not hinder Rugaos favor for sailin. In order to win the landing of sailin, the local government put forward rich conditions. According to Wang Xiaolin, Rugao promised to provide automobile production qualification, equity investment of 3 billion yuan, three-year working capital guarantee of 4 billion yuan, and 3% discount interest; and land matching.

Jiangsu sailin has a close relationship with Rugao, and Pang Qingnian, chairman of youth automobile, is an important matchmaker. Pang Qingnian is a car madman. He was also a guest of honor of many local governments. Shizuishan and Ordos provided funds, land, minerals and other resources to attract him to implement the youth car project. In these cities, Pang put forward grand plans to build cars, but what he left was chicken feathers. In May last year, Pang Qingnian showed a hydrogen energy car that can run with water in Nanyang, Henan Province, which caused public opinion to question. His youth car has now gone bankrupt.

For Wang Xiaolin, automobile production qualification is a big problem in car manufacturing. Without qualification, it is impossible to build cars on the ground. Wang Xiaolin recalled that an official from the Zhejiang Provincial Development and Reform Commission once proposed that letting sailin settle down in the local area could provide Pang youth with the qualification to build a car. It should be that Pang Qingnian needs money, but Zhejiang may not be willing to give him such a large sum of money.

In the process of contact with Zhejiang, Pang Qingnian knew Wang Xiaolins demand for qualification. Wang Xiaolin told China News Weekly that Pang Qingnian contacted him on his own initiative. Under his introduction, he got to know the main leaders of Rugao. The main leader of Rugao proposed to move Pang Qingnians automobile production qualification from Zhejiang to Rugao. Wang Xiaolin said, this thing is very tempting to me. However, according to Rugao government leaders, there is still some investment to be made in order to move the automobile production qualification to Rugao. Wang Xiaolin said he was not clear about the specific investment.

Zhong Shi, an automobile analyst, said that the approval card for domestic fuel vehicle projects is very tight, and it is certainly difficult to approve a separate application, while the new energy vehicle project is relatively loose. In his opinion, the production qualification of new energy vehicles is easy to buy, and the price generally exceeds 1 billion yuan. He believes that Jiangsu sailin and youth automobile are both private enterprises. Due to the complex relationship between them and the local government, the operation level needs to be negotiated between the two governments. However, the government plays the role of a bridge between the two companies in the specific negotiations.

In June 2016, Rugao and Wang Xiaolin signed a landing agreement, and sailin has been using Pang Qingnians automobile production qualification. At that time, it was said to borrow Pang Qingnians automobile production qualification, and sailin borrowed chicken to lay eggs. Besides, I have nothing to do with Pang Qingnian, and our life paths do not intersect.

Wang Xiaolin denied having had close contact with Pang. However, Wang Jun, a former executive of Xilin, told China News Weekly that the relationship between Wang Xiaolin and Pang Qingnian was not so simple, before Wang Xiaolin came, many resources were owned by Pang youth. Today, Rugaos resources are basically taken away by Wang Xiaolin. The relationship between them is actually not harmonious. I have seen them quarrel several times

The name of Jiangsu sailin selected as a key project in Jiangsu Province is Rugao youth sailin passenger car. The words youth car are also printed on the tail of sailins car, which makes Wang Xiaolin very dissatisfied. Rugao has seriously breached the contract. In the joint venture agreement, we want to give us the production qualification, but we can only borrow it.

In Wang Xiaolins opinion, the contradiction between sailin and the local government has a long history. The important performance is that all investment plans proposed by sailin have been rejected by Rugao. Our financing consultants have offered loans with an interest rate of 6.5% - 8.5%, which were rejected by Nantong Jiahe for various reasons. Finally, we had to borrow from Nantong Jiahe at an interest rate of 10% - 12%, and also demanded to take foreign equity as collateral. I have always opposed this. Later, because SUV was going to open a model, mycar had to be put on the market and its employees had to pay wages, so we could only borrow more than 2 billion yuan from Nantong Jiahe with equity mortgage.

A discount of 150 million yuan plus 150 million yuan of land compensation has not been given to us. Wang Xiaolin said that after coming to Rugao, he also became the chairman of the chamber of Commerce of Rugao Development Zone, and both sides had a honeymoon period. But with the emergence of contradictions, it is not so intimate, in fact, the contradiction between the two sides has been for a long time, but now it has broken out.

Jia Yueting in the automobile industry?

In the view of Wang Jun, a former executive of sailin, Wang Xiaolin is particularly good at packing himself. He once held the platform of the younger brother of former US Secretary of State Hillary Clinton. Pull celebrity platform, which is an important chip for him to get attention in China.

According to public information, Wang Xiaolin received a bachelors degree in law from Xiangtan University in 1989. After graduating from Xiangtan University, Wang Xiaolin worked in the peoples Court of the Western District of Changsha City until 1991. After that, he went to the United States to study at Ohio University and obtained a masters degree in international development studies. Later, Wang Xiaolin entered Duke University School of law. After obtaining the double degrees of law doctor and master of law in international comparative law from Duke University, Wang began to work in the Washington office of cleary law firm in New York, and then continued to practice in the Capital Markets Department of Cleveland, the oldest leading law firm in New York.

My father was a law school professor, and it was my goal to become a lawyer in a big American law firm. As a result, I did it in my 30s. Wang Xiaolin told China News Weekly that after completing his ideal of life, he felt lost and had no direction. At this time, Wang Xiaolin got to know the noble man - former chairman of the National Committee of the Democratic Party of the United States. He helped Clinton and Hillary Clinton run for president, and was known as the King maker.

With Wang Xiaolin, McAuliffe set up green tech automotive to make new energy vehicles. However, shortly after the company was founded, McAuliffe served as chairman of the election committee of Democratic presidential candidate Hillary Clinton, and later served as governor of Virginia. After McAuliffe continued his career in politics, Wang Xiaolin gradually took charge of green technology, and Wang Xiaolins car making layout also started from this company.

According to some reports, in 2010, green technology spent 16 million yuan to acquire the intellectual property rights of micro electric vehicles by acquiring Hong Kong euauto. Qiao Yudong claimed that the cost was 20 million US dollars. Wang Xiaolin introduced that after purchasing the property rights, he spent more than 100 million US dollars to transform the technology, and finally invested 1.1 billion yuan into Jiangsu sailin by way of technology investment.

In Wang Xiaolins autobiography, Yangrong is an inseparable figure. In 2002, the brilliance case broke out. After Liaoning provincial government confirmed the state-owned nature of brilliance, it sent a working group to take back the management right of brilliance. Prior to this, the former chairman of brilliance Yangrong has been operating and controlling the company. After the negotiation with the local government broke down, Yangrong left the United States and regarded himself as the legal owner of brilliance. The following year, Yangrong sued Liaoning Provincial Government in Washington Court in the name of occupying private property, which became the focus of public opinion at home and abroad.

Wang Xiaolin, who was the president of the Chinese American Bar Association at that time, was an important promoter behind the case, and some sharp remarks also caused heated discussion in China. This case laid the foundation for Wang Xiaolin and Yangrongs future cooperation. After Yangrong came to the United States, we had a short-term cooperation. He did not have much resources in the United States, but he had a lot of resources and experience in China, while I had extensive contacts in the United States. Wang Xiaolin told China News Weekly.

After McAuliffe left, Wang Xiaolin and Yangrong met once. The two sides hit it off and started close cooperation. He made me the CEO of his Hong Kong company, and I made him the chairman of the American automobile company. Wang Xiaolin described that when the two people had the most intimate relationship, they acted as the heads of each others companies and used the resources of China and the United States to build cars.

However, car building requires a lot of money. In order to finance, Wang Xiaolin and Yangrong have adopted the same game. From 2009 to 2013, green technology launched the employment based immigration preferential program (EB5), which provided opportunities for permanent residency in the United States by collecting funds from those who would like to immigrate. The program received a total of $140 million from 283 people.

The close cooperation between the two was short-lived, and soon there were cracks. My position is that they are partners, but his position is that I work for him. After a few months, cooperation will certainly not go on. After that, both of us have strong personalities Wang Xiaolin told China News Weekly that when cooperation fails, he removes my CEO in Hong Kong. As the American Automobile Company is the board of directors I control, I remove his chairman. We both went to Mississippi to fight a lawsuit

Green technology is also in trouble. In 2014, the New York Times reported that in its five years of existence, green technology made more headlines than cars The company delivered very few cars, the new plant in Mississippi was delayed, and 350 jobs were not delivered.

In 2018, green technology went bankrupt, and Norman Gillett, the companys legal adviseruff08 NormanD.Chirite uff09A report to the Alexandrian chamber of the bankruptcy court of Virginia in the eastern United States (hereinafter referred to as the bankruptcy report) details the troubles of green technology. In 2015, the U.S. Department of Homeland Security investigated the companys immigration investment program. In addition, Mississippi officials filed a lawsuit against green technology because the company failed to repay the states $6.3 million award.

For Wang Xiaolin, the American sailin company is a new capital story for green technology. The cooperation with Wang Xiaolin can ease Steve Selins urgent need at that time. According to the announcement, in February 2014, the company signed an exclusive agreement with green technology to distribute all sailin vehicles in China. In June 2015, the company expanded its relationship with green technology and signed an intellectual property license agreement with sailin international, which is controlled by Wang Xiaolin. According to the above agreement, green technology is granted a sublicensable license, which exclusively uses all the intellectual property rights of American Celin in the world outside North America, and manufactures, promotes, sells and otherwise exploits the intellectual property rights of American sailin in in Europe, the Middle East and Australia. Green technology only needs to pay a certain patent fee.

Since then, green technology and American sailin, Wang Xiaolin and Steve sailin have come together.

With the blessing of American sailin brand, Wang Xiaolin really began to covet the Chinese market. In fact, since at least 2009, Wang Xiaolin has been active in the domestic automobile manufacturing army, leaving his footprints from Inner Mongolia to Guangdong, from Sichuan to Jiangsu, but only Rugao, Jiangsu Province, has finally won so much real gold and silver support.

In October 2015, with the introduction of Pang Qingnian, Weimeng industry (GTA, the major shareholder of green technology is Weimeng industry, which is also owned by Wang Xiaolin), Jinhua youth Automobile Manufacturing Co., Ltd. and Rugao Economic and Technological Development Zone Management Committee signed the strategic cooperation framework agreement on Sino US joint venture high-end automobile manufacturing project. In January 2016, Zifu holdings, Nantong Jiahe and Rugao hi tech entrepreneurship Service Co., Ltd. signed the tripartite cooperation agreement.

In March 2016, within one day, GTA established Rugao Jitai, and Zifu holdings set up Nantong Weimeng, Nantong shimai and Rugao sarin. Four companies invested 6.6 billion yuan in Jiangsu sailin with four models including mycar. Weimeng industry and Zifu holdings acquired about 66% of the shares.

At the same time that Jiangsu sailin is pleased to raise several billion yuan of Rugao citys funds, in the United States, green technology went bankrupt in 2018 in the process of questioning and litigation. Two years before the bankruptcy of green technology, it had been relying on Jiangsu sailin. According to the bankruptcy report submitted by Norman Kirit, the legal adviser of the above-mentioned company, in the two years before 2018, the company can only survive through the advance payment of its major shareholders and the engineering service fees of JSAT (Jiangsu sailin)

Jiangsu sailin is like a life-saving straw for green technology. According to the bankruptcy report, in 2017, green technology also tried to arrange a Chinese investment fund to purchase the equity of Jiangsu sailin, but the transaction could not be completed due to the above litigation issues. According to the report, if the company can sell its equity in Jiangsu sailin, the company will raise each key employee by 25% or pay a severance payment equivalent to 100% of the basic salary.

Green technology doesnt just want to seize the straw of Jiangsu sailin, it also wants to use the domestic capital market. In 2017, Nanning baling Technology Co., Ltd., A-share listed company, issued an announcement to try to restructure major assets. The object of restructuring is the assets transferred by Jiangsu sailin, which mainly includes S1 super sports car, mini electric vehicle workshop, production equipment and proprietary technology of related models (including relevant US assets). However, the restructuring plan was cancelled because of the trade uncertainty brought about by the Sino US trade war.

How does it end

Sailin has fallen has become a well-known news in Rugao. Some media said that Rugao government was cheated by investors from the United States, which also became the topic of local peoples leisure time.

Chen Jianjun, deputy director of Publicity Department of Rugao municipal Party committee, told China News Weekly that Rugao City has established a joint investigation team composed of multiple departments, and the relevant investigation is still in progress.

On the news network of Rugao municipal Party committee of the Communist Party of China, Ma Jinhua, the main promoter of sailin project, has quietly changed. Before June 2020, Ma Jinhua was member of the Standing Committee of Rugao Municipal Committee and Deputy Secretary of the Party Working Committee of Rugao Economic and Technological Development Zone (in charge of the daily work of the Party Working Committee). After June, only member of Rugao Municipal Committee Standing Committee was retained, in charge of agricultural and rural work, service industry and scientific and technological work.

Rugao has not found the problem of Jiangsu sailin before. A senior person in the automobile industry who participated in the decision-making of Rugaos new energy vehicles said frankly to China News Weekly that it is justifiable.. Wang Xiaolin is one of the top financial lawyers and intellectual property lawyers in the United States. Even if Rugao government hired lawyers, he would not be able to play with him. This person in the industry is very straightforward.

In fact, Qiao Yudong began to report Wang Xiaolin around October last year. Jiangsu also sent a working group to investigate. The investigation found that Wang Xiaolin did not have any problems in the report.

According to Wang Xiaolin, the communication between Jiangsu sailin and Rugao is very close. Under normal circumstances, there is communication every week. Either they come here to inspect or we go there to report. All budgets are approved by Rugao government. However, Tian Ming told China News Weekly that in his impression, Rugao government never came to the project research and development site to carefully understand the progress of SUV and did not communicate with the team leader.

Wang Jun, a former senior executive of Xilin, said: the person in charge of Rugao local government did not have the determination and courage to lift the cover before. It was not until Qiao Yudong made a report under his real name, which aroused strong public concern, and Rugao had no way out before he began to conduct a thorough investigation. In his opinion, if we investigate earlier, we will reduce a lot of losses. The ark on land is yellow, including youth cars, sailin, and all the projects introduced by Rugao have problems. Wang Jun said frankly: the introduction of these car companies continue to have problems, is not the local government aware of the problem?

Now, in the northern suburb of Rugao, the new energy automobile industry base, sailin No.1 Factory has been empty. Next to the wall is Pang Qingnians youth car Jiangsu Branch, which has already stopped production. The seal up notice issued by Nantong intermediate peoples Court on June 16, 2020 has been pasted at sailin No.2 factory, which is more than 20 minutes drive away from sailin No.1 Factory. In addition, at the gate of No.2 factory, there is also a notice issued by Nantong Jiahe, a state-owned shareholder, to inform all employees of Xilin Automobile Co., Ltd., saying: as Wang Xiaolin, chairman, CEO and legal representative of Jiangsu sailin Automobile Co., Ltd. is far away from the United States and is negligent in performing his duties, Jiangsu sailin has no chance to continue and the legitimate rights and interests of its employees have suffered losses.

In an open letter sent to employees on June 30, Wang Xiaolin made a sharp response, pointing out that the state-owned shareholders were in the control bureau, and the purpose was to seize the equity and expel the foreign shareholders.

Wang Jun, a former executive of sailin, believes that the current problem of Rugao government is how to take back the control of Jiangsu sailin. If sailin goes bankrupt, nearly 6 billion yuan will be wasted.

The two sides are still fighting for control. On July 15, Nantong Jiahe sent Zhou Feng, the supervisor of Jiangsu sailin, to hold an interim shareholders meeting on August 4. The main topics of the meeting were: to remove Wang Xiaolin from the post of chairman of the board of directors, and to elect Zhang Weiwei as the new director and chairman. At the same time, at the shareholders meeting, the articles of association of the company was amended to require all directors of the board of directors to be appointed by a shareholder of Nantong Jiahe, the notice period of the board of directors and shareholders was shortened to three days, and the meeting must be held on site.

(Nantong Jiahe) as a small shareholder, how can it be possible to remove the directors elected by the general meeting of shareholders? This is a matter of common sense Wang Xiaolin on the other side of the ocean, refused to hold this shareholders meeting, and the two sides fought again.

Luo Zhiyu, director of domestic and foreign investment, financing and M & a department of Jingshi law firm, told China News Weekly that if major shareholders refuse to cooperate, Rugao state-owned assets, as a minority shareholder, has the right to propose a shareholders meeting, but its proposal may not be passed. As the proportion of equity held by Rugao is only 33.4%, the voting rights of Rugao state-owned assets are less than two-thirds. Although the shareholders of Rugao state-owned assets have one vote of veto power to veto the motion proposed by Wang Xiaolin, it is also very difficult for Rugao state-owned assets to get its motion passed by voting in the normal way.

If Rugao government wants to take back the control of the company, it can only go through the judicial process. Luo Zhiyu analysis, Rugao state-owned assets through litigation, can bypass the companys articles of association, fight for the companys control. However, there are many shortcomings in this way. After criminal charges and public security organs file a case, it will take a long time until the judgment. Similar commercial criminal cases, from filing, investigating to approving arrest, need at least one year. The incidental civil proceedings in the stage of case settlement or review and prosecution are relatively passive for small shareholders.

If there is an agreement in the investment agreement between the two parties, for example, the actual controllers behavior seriously damages the interests of the company, and the investor has the right to dispose of the equity and remove the chairman of the board, the situation will not evolve into the present situation. Luo Zhiyu lamented that in practice, it is very important to establish a strict agreement binding mechanism, but it is not if.

Chen Jianjun, deputy director of the Publicity Department of Rugao municipal Party committee, told China News Weekly that at present, the public security organs have filed a case for investigation, and the factory has also been closed down, because the number involved is really large and the time span is relatively long, so the investigation does not mean that the results will come overnight. Chen Jianjun said that Rugao is also learning lessons, and the hole caused by this incident should be filled up. It is certainly impossible to say that such a large piece of land (more than 900 mu) is abandoned there, and it will certainly do its best to minimize the losses. Where to go next may require relevant experts to sit down and demonstrate to make decisions. What Wang Xiaolin said is called evidence in court. Chen Jianjun said that there are relevant local legal professionals who will cross examine his every sentence and provide advice to the investigation team. After the incident, Wang Xiaolin, who was far away in the United States, kept receiving media interviews, pointing the spear at Rugao, believing that the root cause of Jiangsu sailins bankruptcy was caused by individual leaders of Rugao and Nantong Jiahe. It is meaningless for me to go back to China. I will take the United States as my base and fight a protracted war with Jiahe in Nantong. Source: Chen Hequn, editor in charge of China Newsweek_ NB12679

Chen Jianjun, deputy director of the Publicity Department of Rugao municipal Party committee, told China News Weekly that at present, the public security organs have filed a case for investigation, and the factory has also been closed down, because the number involved is really large and the time span is relatively long, so the investigation does not mean that the results will come overnight. Chen Jianjun said that Rugao is also learning lessons, and the hole caused by this incident should be filled up. It is certainly impossible to say that such a large piece of land (more than 900 mu) is abandoned there, and it will certainly do its best to minimize the losses. Where to go next may require relevant experts to sit down and demonstrate to make decisions.

What Wang Xiaolin said is called evidence in court. Chen Jianjun said that there are relevant local legal professionals who will cross examine his every sentence and provide advice to the investigation team.

After the incident, Wang Xiaolin, who was far away in the United States, kept receiving media interviews, pointing the spear at Rugao, believing that the root cause of Jiangsu sailins bankruptcy was caused by individual leaders of Rugao and Nantong Jiahe. It is meaningless for me to go back to China. I will take the United States as my base and fight a protracted war with Jiahe in Nantong.