According to the courts ruling, brilliance groups assets are insufficient to pay off all its debts, and it has the cause of bankruptcy stipulated in the enterprise bankruptcy law. But at the same time, the group has the value and possibility of rescue, so it is necessary and feasible to restructure.
As a state-owned enterprise in Liaoning Province, brilliance group directly or indirectly controls and shares in four listed companies, and through its listed company Brilliance China and BMW jointly established brilliance BMW company. There are three independent brands of Zhonghua, Jinbei and Huasong, and two joint venture brands of brilliance BMW and brilliance Renault.
This year, novel coronavirus pneumonia affected the situation of brilliance groups independent brand management, and the debt problem was accumulated for a long time. According to the semiannual report of brilliance group this year, the total debt of the group level is 52.376 billion yuan, and the asset liability ratio is more than 110%, and it is unable to finance. In order to solve the debt problem, the relevant parties set up the brilliance group bank debt committee to strive for debt reconciliation, but failed.
Previously, the national enterprise bankruptcy reorganization case information network announced that Gezhi Automobile Technology Co., Ltd. applied to Shenyang intermediate peoples Court of Liaoning Province for reorganization of brilliance Automobile Group Holding Co., Ltd., with case No. (2020) Liao 01 Po Shen No. 27. According to the public information, Gezhi Automotive Technology Co., Ltd. is a manufacturer of automobile stamping dies, which is engaged in the design, development, manufacturing and sales of automobile stamping dies. It mainly provides customized services for automobile manufacturers and parts manufacturers worldwide.
On the 20th, the national enterprise bankruptcy reorganization case information network showed that it accepted the reorganization application of Gezhi Automobile Technology Co., Ltd. to brilliance Automobile Group Holding Co., Ltd. This ruling shall come into effect on this day.
Despite the bankruptcy reorganization, the relevant person in charge of brilliance group said that the reorganization only involved the groups own brand plate, not the groups listed companies and joint ventures with BMW and Renault. As the most important partner of BMW in China, the group is expected to achieve rebirth after restructuring and try its best to recover the losses of creditors. At the same time, BMW Brilliance is still a stable source of profits in the future, and will continue to launch new products and expand the scale.
By the end of the day, both JinBei Auto and Shenhua holdings were trading.
Brilliance group directly and indirectly holds about 446 million shares of Shenhua holding shares, accounting for 22.93% of the total share capital of the company. The number of shares in the frozen state is about 108 million shares, accounting for 24.13% of its total shares and 5.53% of the total share capital of the company.
Debt default is as high as 6.5 billion!
Brilliance group said that due to the shortage of enterprise funds, the approval of extension credit was not completed, resulting in unable to repay. The debt default of brilliance group has an impact on the production and operation of the headquarters of brilliance group, leading to the deterioration of financial situation and greatly affecting the solvency.
Brilliance group is a key state-owned enterprise in Liaoning Province. Its predecessor was Shenyang automobile factory, which was established in 1958. It went to the United States in 1992 and is the first Chinese enterprise to list overseas. Later, it successfully introduced BMW, a top car manufacturer, to establish a joint venture.
Debt over 130 billion
BMW cant carry it
In 2003, brilliance group and BMW Group joined hands to establish brilliance BMW, from which brilliance automobile began to live on the profit of joint venture brand. However, due to the product competitiveness, weak R & D ability and strategic errors of the company, brilliance Automobile Group has gradually gone down the road. The independent R & D capability is weak, and has gradually fallen into the development dilemma, and the discourse power of brilliance automobile group is becoming weaker and weaker.
According to the bond semiannual report of brilliance automobile group in 2020, the total liabilities of the group are 132.844 billion yuan. After deducting goodwill and intangible assets, the asset liability ratio is 71.4%. The balance of cash and cash equivalents at the end of the period was 32.677 billion yuan.
Over the years, Brilliance Automotive Groups profit mainly comes from BMW, and the profitability of its own plate is weak.
Brilliance Automotive Groups own brand vehicle business includes Brilliance China, Huasong, brilliance golden cup and other products. According to the data released by the Travel Association, Brilliance China sold 3186 vehicles in the first half of this year, with an average monthly sales of only about 500 vehicles. Huasong series products have no sound volume, while Jinbei series products will sell less than 20000 vehicles in 2019.
In fact, brilliances own sector has been in a dilemma for a long time. Its financial report shows that from 2015 to 2019, after excluding the profit sharing of brilliance BMW, brilliance lost 540 million yuan, 600 million yuan, 860 million yuan, 420 million yuan and 1.064 billion yuan respectively, with an overall loss of 3.484 billion yuan.
However, this kind of blood transfusion relies on brilliance BMW to maintain brilliant revenue and net profit time is not much. At present, BMW Brilliance equity adjustment has entered the countdown. According to the agreement signed between brilliance and BMW in 2018, BMW will acquire 25% of the equity of BMW Brilliance from brilliance before 2022. At that time, BMW and brilliance will hold 75% and 25% shares of BMW Brilliance respectively, and will not be included in the merger scope of brilliance automobile. At present, Liaoning provincial government is considering judicial restructuring of brilliance automobile to solve its debt problem. For BMW, it will not sit idly by. After all, there is still more than a year to go before the equity change. After giving its brilliance BMW parts matching order of 50 billion yuan in July this year, 20 BMW experts were transferred from Germany in August to help improve its business level. Source: Yang Qian, editor in charge of China fund daily_ NF4425
At present, Liaoning provincial government is considering judicial restructuring of brilliance automobile to solve its debt problem. For BMW, it will not sit idly by. After all, there is still more than a year to go before the equity change. After giving its brilliance BMW parts matching order of 50 billion yuan in July this year, 20 BMW experts were transferred from Germany in August to help improve its business level.