The original prophecy is slowly fulfilling
Editor’s note: This article is from the WeChat public account “Investment community” (ID: pedalily2012)< / a>, author: Liu Bo.
A winter will come again.
This is the earliest new car building forceOne positive is at stake. The investment community (ID: pedaly2012) recently learned that according to the announcement of the People’s Court of Yuhang District, Hangzhou, Hangzhou Yangtze River Automobile The limited company was ruled to enter the bankruptcy liquidation process, and the court will hold the first creditors meeting on November 26.
In a short time, Yangtze River Automobile also had a glorious time. Established in 2013, Yangtze River Motor is backed by a Hong Kong-listed company Wulong Electric Vehicle, entered the field of new energy vehicles early. In 2016, when many new car-making forces had not yet been born, this car company had already released its own electric car brand, and it was the second car company with “dual qualifications” after BAIC New Energy. And behind the parent company Wulong electric car, there is also Hong Kong rich Li Ka-shing backing.
Even so, this car company still cannot escape bad luck. Since the second half of 2018, as subsidies have declined and market demand has declined, Yangtze River Automobile has begun to report funding shortages. Its only passenger model “Yicuo” was released as early as April 2016, but it has not yet achieved mass production and delivery. After two years of hard work, Yangtze River Automobile finally chose to go bankrupt.
This situation is also a microcosm of the current status of many domestic car companies, which is embarrassing.
In the end, this new force chose to go bankrupt, and the car burned out 5.1 billion
An announcement reveals the true situation of Changjiang Motor.
Recently, the People’s Court of Yuhang District, Hangzhou City issued a notice stating that according to Hangzhou’s Wantou Business Services Co., Ltd. The court has ruled on August 24, 2020 to accept the bankruptcy liquidation case of Hangzhou Changjiang Automobile Co., Ltd. The creditors of the company should declare their claims to the administrator before November 11, 2020, stating in writing the amount of the claims, whether there is property guarantee, and whether they are joint claims. The court will also hold the first creditors’ meeting on November 26.
Before that, Yangtze River Automobile had been deeply involved in a salary arrears. There are employees in Yangtze River AutomobileBaidu Tieba posted that as of October this year, Yangtze River Automobile had been owed wages for 11 months, plus the contractually agreed 13 wages, for a total of 14 months, and even some employees had not received their 2018 business trip reimbursement. The other party also revealed that the company regularly publishes a “Notice of Waiting at Home” every week, but there has never been any information about salary payment.
According to the Yangtze River Automobile documents circulating on the Internet, the investment community found that such “Waiting at Home Notice” has been issued at least 8 times, and the most recent one was issued on October 23. The content of each notice is basically the same. The work is still going on, so it is decided that all employees will stay at home and wait for further notice.”
However, these employees are now waiting for the “Notice of Dissolution of Labor Contract” and “Agreement on Dissolution of Labor Contract.” This latest notice shows that the labor contract relationship between the two parties will be terminated from November 1, 2020. The reason is that “Changjiang Automobile has been closed for a long time before bankruptcy. According to the relevant provisions of the Labor Contract Law, our company has decided to terminate the labor contract with you. Related matters.” As for part of the wages in the employee’s claims, Changjiang Company requested the local government to advance in advance, but the amount and time of advance payment will be determined by the government.
Looking back four years ago, Wulong Electric Vehicle invested 5.1 billion yuan in 2016 Yangtze River Motor and released the electric vehicle brand “Yangtze River EV”. But unexpectedly, after just four years, Yangtze River Automobile burned out the 5.1 billion.
As the parent company of Changjiang Motors, Wulong Electric Vehicles has also been overwhelmed and cannot help. According to the latest annual report of Wulong Electric Vehicles, the company has suffered losses for many years. In the past five fiscal years (FY2015~FY2019), the loss attributable to company owners was HK$410 million and 2.2800 million Hong Kong dollars, 555 million Hong Kong dollars, 2.230 billion Hong Kong dollars and 1.99 billion Hong Kong dollars. In addition, Wulong electric vehicles have been suspended on the Hong Kong Stock Exchange since July 2 this year, and their market value is only HK$476 million.
is established for 7 years, one of the earliest new forces, Li Ka-shing once supported it
Before the fall, the Yangtze River Automobile also had a bright future.
The time goes back to 2013. At that time, the predecessor of Changjiang Automobile, Hangzhou Changjiang Bus Co., Ltd., as an old car company established in 1954, ceased production in the late 1990s and was also on the verge of closing. At this moment, Wulong Electric Vehicle chose to reorganize and then changed its name to Hangzhou Changjiang Automobile Co., Ltd.
The Wulong electric car is not small. Among the shareholders behind this company is Hong Kong rich businessman Li Ka-shing. Since 2010, Li Ka-shing has repeatedly increased his shares in Wulong Electric Vehicles, and in August 2015, he became the third largest shareholder. In 2015, when the shareholding ratio was the highest, Li Ka-shing once owned 8% of Wulong Electric Vehicle.
It is precisely under Li Ka-shing’s continuous blessing that Wulong Electric Vehicles invested 5.1 billion yuan into Yangtze River Motors in 2016 and released the electric vehicle brand “Yangtze River EV”. At the same time, the Hangzhou plant was officially put into production. 100,000 vehicles, with an annual production capacity of 300,000 vehicles in the second phase. At that time, domestic new energy vehicle manufacturing forces began to flourish, and Yangtze River Motor became the second domestic new energy vehicle company with “dual qualifications” after BAIC New Energy.
What’s even more sensational is that in 2017, Yangtze River Motor attracted the then Volvo China CEO Tong Zhiyuan to join, and became the first domestic car company to export high-end electric logistics vehicles to the US market in large quantities. In the same year, Yangtze River Automobile also won a large order for 500 electric commercial buses with a total value of more than 100 million yuan.
It can be said that the Yangtze River Automobile is in full swing at this time. But what is unexpected is that just one year later, Yangtze River Automobile has fallen into a quagmire.
Starting from the second half of 2018, with the decline in subsidies and the decline in market demand, Yangtze River Automobile has seen news of funding constraints. Prior to this, Yangtze Motor had announced plans to launch a new passenger car in 1-2 years. However, after the release of the passenger car “Yiku” in April 2016, three concept cars were not unveiled at the Beijing Auto Show until 2018.
Yangtze Motor’s official website shows that there are currently four models under its umbrella, including “Yige”, “Yisheng”, “Yizhong”, and “Yicuo”, of which the first three are electric commercial vehicles. It can be seen that the commercial vehicle models are the main products of Yangtze Motor, but the sales of its electric minibuses and buses were only about 1,000 last year, and production has been substantially suspended since the second half of last year. As for the only passenger model, the “Yicoo” has not yet been released for mass production and delivery.See the trace.
Building a car to burn money is no joke. The rapid decline of Yangtze River Automobile, coupled with the continuous losses of Wulong electric vehicles, also made Li Ka-shing lose confidence. Today, Li Ka-shing is no longer in the list of the top ten shareholders of Wulong Electric Vehicles, and his shareholding ratio is less than 0.04%.
In a difficult situation, Yangtze River Automobile played the last card in his hand-“Dual Qualification”. In January 2019, Yangtze River Automobile signed an agreement with Leap Motor, which is also a new force in car-building, to manufacture for the latter. However, the sales volume of Leap Motor has not been large since its establishment. This is obviously a drop in the bucket for Changjiang Automobile.
Now I log on to the official website of Yangtze River Automobile, and it still says “The vision of creating a world-class electric car brand”, but for now, such a goal may not be achieved.
2020 is coming to an end: some people leave the market, some people rise, The market value of the three Musketeers rose by 50 billion last night
The end of Yangtze River Automobile is actually a microcosm of the status quo of many domestic auto companies.
In February of this year, AIWAYS said that due to factors such as the epidemic and the decline in the auto market, it cancelled the payment of the 2019 year-end bonus and adopted a partial delay in the salary of employees in February;
In March, Weimar Motors also announced the cancellation of the 2019 year-end awards, and stated that due to the huge challenge of the new crown epidemic to start-ups, the employees’ “13 salary” and “employee car subsidy” and other benefits will be postponed to 6 Will be issued after month;
In April, Dongfeng Group issued an announcement stating that Renault intends to transfer its 50% stake in Dongfeng Renault to Dongfeng, and Dongfeng Renault will also stop business activities related to the Renault brand;
In May, Bojun Automobile was exposedSome employees were granted suspension of pay, and then signed a standby agreement with some employees. The period is from June 1st to the end of December. During this period, the company will provide employees with a monthly living allowance of 2,480 yuan…
It’s not just new forces that build cars, but traditional car companies are also facing accelerated reshuffle. The latest financial report of Zotye Automobile in 2020 shows that its net profit attributable to shareholders of listed companies in the first three quarters was a loss of 1.563 billion yuan, and only 1,417 cars were sold in the first half of the year; the same insolvent Lifan Motors was attributable to the listing in the first three quarters The company’s shareholders’ net profit was a loss of 3.445 billion yuan, and even 44 imported Mercedes-Benz vehicles from the subsidiary were auctioned online.
Reality is always so cruel. But as the old players retreat sadly, new players are rising strongly.
Wang Xing, the founder of Meituan, predicted in January this year that in the end, there will only be three new car-making forces in China: Ideal, Weilai, and Xiaopeng. And Ideal Car CEO Li Xiang once publicly stated, “Among hundreds of new car companies, persisting to this day, Never default on employee wages, never default on supplier payments, the two most basic and most responsible estimates are no more than five.
With Xiaopeng’s successful IPO in the United States at the end of August this year, these three new domestic car manufacturers have already gathered in the US stock market. According to the latest financial report, the cumulative sales of Weilai, Ideal and Xiaopeng in the first 10 months of this year all exceeded 10,000, and they delivered 5,055, 3,692, and 3,040 vehicles in October respectively, leaving other new forces behind.
The strong delivery volume also caused the stock prices of these three new power car companies to rise collectively last night, and the overall market value increased by nearly 50 billion yuan overnight. Among them, Weilai’s share price closed up by 8.96%, with a market value of 45.297 billion US dollars, or about 303 billion yuan, surpassing SAIC in one fell swoop, becoming the second-largest domestic vehicle company by market value.
For nowIn other words, the script between the new car-making forces seems to be moving towards the ending described by Wang Xing, and the original prediction is slowly being fulfilled.