Since this year, brilliance automobile has fallen into the debt crisis, which also produces a series of chain reactions. On November 20, Shenyang intermediate peoples Court of Liaoning Province ruled to accept the creditors application for reorganization of brilliance automobile, and brilliance automobile officially entered the bankruptcy reorganization procedure.
Creditors come to visit
When the reporter entered the brilliance automobile complex building, the front desk security guard was very cautious and said: now we need to go through the procedure of looking for someone. We need to make an appointment in advance and provide relevant information, including the specific department, person and contact information. However, the reporter also noted that in the front desk registration form, only one hour on November 24, there were a number of creditors visiting, including China Merchants Securities, Hana Bank, Huaxia Bank, Harbin Bank and Shengjing bank.
Debt liquidation should have begun. Brilliance Autos subsidiary employees told the first financial reporter. The head of the Credit Department of Shenyang Branch of a joint-stock bank told the first finance and economics reporter that his bank did assess the risks of brilliance group and its enterprises, but had not received any more notice at present. We visited brilliance group to learn about the relevant situation with the person in charge of the enterprise. The atmosphere was good throughout the whole process. It was not what the outside world thought was debt collection. The above-mentioned staff told reporters. However, the reporter noted that the staff member was very busy, and it was early in the morning to reply to the message. Shenyang Brilliance branch is not responsible for the amount of loans to foreign banks. In addition, the reporter learned from an informed person that a creditor is staying up late to sort out the debt.
On November 23, Brilliance China (01114. HK) announced that brilliance motor had received a written notice from the CSRC. According to the notice, China Securities Regulatory Commission (CSRC) has launched an investigation into brilliance autos suspected violation of information disclosure laws and regulations. In addition, brilliance automobile also received a warning letter from Liaoning regulatory bureau of China Securities Regulatory Commission that it failed to fulfill its obligation of information disclosure in a timely manner and announced the impact of several major issues on its bond repayment.
The reporter contacted the relevant financial personnel of brilliance automobile, and the other party said that he did not accept media interview at present, hoping to understand. In addition, the reporter noticed that the employees of brilliance automobile are also very cautious. Several employees told reporters of first finance and economics that it is an extraordinary time to face the media and have no comment on any problems.
In August this year, a number of existing bonds of brilliance Motor Co., Ltd. plummeted. Creditor banks formed a debt Committee on brilliance autos debt. In October of this year, brilliance automobile fell into the whirlpool of public opinion again because it failed to pay the private placement debt of 1 billion yuan as scheduled. At that time, relevant persons of brilliance automobile admitted to the first finance and economics reporter that the company encountered financial difficulties and failed to cash the due bonds on schedule, and the group was actively working to study solutions.
The debt crisis triggered a series of chain reactions. On November 13, Gezhi Automobile Technology Co., Ltd. (brilliance automobile supplier) applied to Shenyang intermediate peoples Court of Liaoning Province to restructure brilliance Automobile Group Holding Co., Ltd., with case No. (2020) Liao 01 Po Shen No. 27. On the evening of November 16, brilliance automobile announced that at present, brilliance automobile has constituted a debt, with a total amount of 6.5 billion yuan of default and 144 million yuan of overdue interest. Due to the shortage of enterprise funds, the approval of extension credit is not completed, resulting in the inability to repay. The debt default of brilliance automobile has an impact on the production and operation of the headquarters of brilliance automobile, leading to the deterioration of financial situation and greatly affecting the solvency.
Since the beginning of this year, brilliance auto has sold its shares for many times to ease the pressure on capital. In May this year, brilliance automobile signed a strategic investment agreement with Liaoning Communications Construction Investment Group Co., Ltd. and its subsidiary Liaoning Communications Investment Co., Ltd. (hereinafter referred to as Liaoning Communications Investment), which will sell 200 million shares of brilliance china equity to Liaoning Communications Investment Co., Ltd. at a price of us $0.01 per share, accounting for 3.96% of the equity of Brilliance China. On July 9, brilliance Automobile Group signed a strategic investment agreement with Liaoning Jiaotou, selling 400 million shares of the company, accounting for 7.93% of the total issued share capital of the company.
Independent plate crisis
Brilliance automobile is a key state-owned enterprise subordinate to the state owned assets supervision and Administration Commission of Liaoning Province. It has four listed companies, namely Brilliance China (01114. HK), Jinbei Automobile Co., Ltd. (600609. SH), Shanghai Shenhua Holding Co., Ltd. (600653. SH) and Xinchen China Power Holding Co., Ltd. (01148. HK).
The headquarters of brilliance automobile group, brilliance Renault and Jinbei are in the same park. From the current point of view, the situation in the park is relatively normal, and the work has not been greatly affected. Several employees said they were still commuting normally. However, Brilliance China and the above companies are not in the same park, there is a street away from it.
At present, China is in chaos. The employees are paid the basic salary. Some of them are in arrears with their provident fund. Some of them are doing part-time jobs, including didi and delivery delivery. Chinas development is not good, brilliance Renault gold cup joint venture, the diversion of some Chinese employees. A staff member of brilliance Department told the first financial reporter.
After brilliance automobile announced that it was going into bankruptcy reorganization procedure, Jinbei Automobile and Shenhua holdings issued an emergency announcement saying that the companys production and operation would not be affected, but it might affect the companys equity structure and other aspects. On the evening of November 23, Shenhua holdings announced that, in order to withdraw funds, the companys wholly-owned subsidiary plans to pre list the shares of seven new energy project companies. This is interpreted by the industry as a result of brilliance autos bankruptcy. Shenhua holdings sold its wind power assets to repay its debts. It is worth noting that the reporter found from the brilliance auto visit registration form that the departments that Shengjing bank and Huaxia Bank met were all Jinbei finance.
In addition, brilliance automobile said that the restructuring only involves the groups own brand plate, not the groups listed companies and joint ventures with BMW and Renault. As BMWs most important partner in China, brilliance 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.
A brilliance Renault employee told reporters: brilliance Renault will announce a big plan internally at the end of the year, and there will be some adjustment in the number of personnel. In addition, according to recent media reports, insiders of Xushui branch of Great Wall Motor Co., Ltd. disclosed that BMW actually has greater expectations for the joint venture plate with great wall. Not only is it expected to put into production the whole Mini Series in the future, but also the chassis business news shows that BMW 3 Series production line is being laid, and mass production SOP is expected to start in 2024. However, BMW China and Great Wall Motors both denied the news.
Some of our old employees have deep feelings for brilliance and feel very sorry to see that China has come to this point. The above brilliance Department staff told reporters. As early as 2000, the first generation of Zhonghua automobile was launched, and then Zhonghua zunchi, Zhonghua Junjie, Zhonghua h530, Zhonghua V5, Zhonghua V3 and Zhonghua V7 were launched on the market. At present, more than ten models of its two major series of cars and SUVs are still displayed on Brilliance Chinas official website. However, only Zhonghua V3, Zhonghua V6 and Zhonghua V7 are on sale.
Brilliance automobile was once very popular in the commercial vehicle market, and then entered the passenger car market. In 2003, brilliance joined hands with BMW Group to establish brilliance BMW. From then on, 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. Brilliance Autos independent 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. According to the financial report released by Brilliance China, in the first half of this year, revenue of Brilliance China reached 1.45 billion yuan, a year-on-year decrease of 23.85%, and net profit of 4.045 billion yuan, an increase of 25.24%. If the profit share from BMW Brilliance is removed, the total loss of Brilliance China will reach 340 million yuan. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679
Brilliance automobile was once very popular in the commercial vehicle market, and then entered the passenger car market. In 2003, brilliance joined hands with BMW Group to establish brilliance BMW. From then on, 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. Brilliance Autos independent 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. According to the financial report released by Brilliance China, in the first half of this year, revenue of Brilliance China reached 1.45 billion yuan, a year-on-year decrease of 23.85%, and net profit of 4.045 billion yuan, an increase of 25.24%. If the profit share from BMW Brilliance is removed, the total loss of Brilliance China will reach 340 million yuan.