This article is from WeChat official account:Investment industry (ID: PEdaily), author: Liu Bo, the first map from: vision China
A winter will come again.
One of the first new car-building forces is at stake. The investment community recently learned that, according to an announcement by the People’s Court of Yuhang District, Hangzhou, Hangzhou Changjiang Automobile Co., Ltd. was ruled to enter the bankruptcy liquidation process. The court will hold the first creditors’ meeting on November 26.
In a short time, Yangtze River Automobile also had a bright time. Established in 2013, Yangtze River Automobile entered the field of new energy vehicles early, backed by Wulong Electric Vehicle, a Hong Kong-listed company. 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.It’s embarrassing.
1. In the end, this new force chose to go bankrupt and burned out 5.1 billion cars.
An announcement reveals the true situation of Changjiang Motor.
Recently, the People’s Court of Yuhang District of Hangzhou City issued an announcement stating that According to the application of Hangzhou Wantu Business Service Co., Ltd., the court has ruled on August 24, 2020 to accept the bankruptcy liquidation case of Hangzhou Changjiang Automobile Co., Ltd.< /strong>. 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. Some employees posted on Yangtze Motor’s Baidu Tieba that as of October this year, Yangtze Motor had been owed wages for 11 months, plus the contract’s 13 wages, for a total of 14 months. Some employees even had not been reimbursed for business trips in 2018. Got it. 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 HK$228 million respectively , 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.
2. Founded 7 years ago, one of the earliest new forces, Li Ka-shing once backed 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, “Yicuo” has not yet been put on the market for mass production and delivery, and it has disappeared.
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.
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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 now, the script between the new car-building forces seems to be moving towards the ending described by Wang Xing, and the original prediction is slowly being fulfilled.
This article is from WeChat official account:Investment industry (ID: PEdaily), author: Liu Bo