“Use doctrine” keeps Brilliance Group always missing core technologies such as automobile chassis and engine, which is destined to make Brilliance Auto not far.
Radar Finance Article|Edited by Li Hongjing|Deep Sea
Brilliance Group, which has fallen into bankruptcy and reorganization, has once again returned to people’s vision.
On December 4, according to the Liaoning Provincial Commission for Discipline Inspection, Brilliance Automobile Party Secretary and Chairman Qi Yumin is suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and supervision and investigation.
According to his resume, Qi Yumin was once the deputy mayor of the People’s Government of Dalian, Liaoning Province. Since December 2005, he has been the chairman and party secretary of Brilliance Automotive Group Holdings Co., Ltd.
After 13 years in power, in March 2019, Qi Yumin retired from the position of Secretary of the Party Committee and Chairman of Brilliance Automotive Group Holdings Co., Ltd.
Although he has retired, Qi Yumin was mentioned after Brilliance Group fell into a crisis. On August 29, 2020, due to the fact that Shenhua Holdings, the controlling shareholder Brilliance Automobile Group Holdings Co., Ltd. and other responsible persons, Qi Yumin and others failed to fulfill the decision-making procedures and information disclosure obligations due to the large amount of related capital transactions, and the controlling shareholder’s non-operating funds occupied The violation of the rules was criticized by the Shanghai Stock Exchange.
According to public information, after Qi Yumin took the helm, Brilliance Group reversed its annual loss of billions. In 2006, Brilliance Automobile sold more than 200,000 vehicles, a year-on-year increase of more than 70%;The volume kept rising and realized profitability in one fell swoop.
Qi Yumin is very confident in Brilliance, and once shouted the slogan “Vow to build a BMW in China”. However, he did not pay attention to technology research and development, he once said, “I dream of a product whose chassis is tuned by Porsche; its shape and interior and exterior are made in Italy; its engine is a cooperation with BMW. Integration, does a good car come out?”
The “usage doctrine” makes Brilliance Group always lack core technologies such as automobile chassis and engine, which is destined to make Brilliance Auto not far away.
In 2010, Brilliance Group’s light passenger car Jinbei market had a total of 1 million vehicles. But then the sales of Jinbei series cars went downhill, Jinbei Automobile has also been ST by the Shanghai Stock Exchange twice. In 2017, Brilliance Jinbei 49% equity was sold to Renault by Brilliance Group for 1 yuan, and a joint venture was established< a class="project-link" data-id="284989" data-name="Brilliance Renault" data-logo="https://img.36krcdn.com/20200729/v2_b13b083842f14b05bab6644305646fa8_img_000" data-refer-type="2 "href="https://36kr.com/projectDetails/284989" target="_blank">Brilliance Renault.
In 2015, Brilliance Zhonghua’s highly anticipated small SUV Zhonghua V3 was launched. At that time, Qi Yumin set a goal to reach 30 billion yuan in sales of Brilliance Automobile by 2020. He also proposed, “Before I retire, I must let Brilliance Enter the world’s top 500.”
In 2017 and 2018, the sales volume of China V3 was only 36,000 and 12,500 respectively, which was far below expectations.
2018 is Qi Yumin’s last year in office. Brilliance Group’s own brand sales of nearly 89,000 vehicles, less than half of 2006, have derailed from the mainstream market.
Brilliance Group has many listed companies, including Xinchen Power, Jinbei Automobile, Shenhua Holding, Brilliance China, etc., the most important of which is Brilliance China, which owns the assets of BMW Brilliance.
Brilliance China’s financial report data shows that in the first half of 2020, Brilliance China’s revenue reached 1.45 billion yuan and its net profit reached 4.045 billion yuan. However, if the net profit contributed by BMW Brilliance is up to 4.383 billion yuan, Brilliance China will lose 340 million yuan.
Despite being the most profitable asset of the Brilliance Group, the controlling stake in BMW Brilliance was sold to the BMW Group. On October 11, 2018, at the celebration of the 15th anniversary of BMW Brilliance, Brilliance Group and BMW Group jointly announced that Brilliance Group intends to sell a 25% stake in BMW Brilliance to BMW Group by 2022, at a transaction price of RMB 29 billion. yuan.
After the transaction is completed, the equity of Brilliance Group in BMW Brilliance will be reduced to 25%, and the reduction of the equity ratio means the loss of the right to speak. From the outside, BMW Brilliance’s specific support for Brilliance will be further reduced, and the technical output will not be discussed.
The debt problem of Brilliance Group began to be exposed two years ago. The local government has been working hard to help Brilliance Group solve the cash flow problem, but it has been hard to return and has not been able to find a solution.
According to the semi-annual report, Brilliance Group has a total debt of 132.844 billion yuan, with an asset-liability ratio exceeding 110%, and it has lost its financing capacity.
Beginning in September this year, Brilliance Group was intensively sued to the court for unliquidated debts, and a large number of assets and equity were frozen by the court.
On November 16, Brilliance Group disclosed that the company has constituted a debt default amount of 6.5 billion yuan and overdue interest amount of 144 million yuan. Due to the shortage of corporate funds, the renewal credit approval has not been completed, resulting in failure to repay.
On November 20, the Shenyang Intermediate People’s Court ruled to accept creditors’ application for reorganization of Brilliance Automobile Group Holdings Co., Ltd., marking that this auto company has officially entered the bankruptcy reorganization process.
The court’s ruling stated that Brilliance Group has insufficient assets to pay off all debts, and it has the bankruptcy reasons stipulated in the Corporate Bankruptcy Law. But at the same time, the group has the value and possibility of salvation, and the necessity and feasibility of reorganization.
Some investors revealed to the media that after Brilliance Group declared bankruptcy, the company held an online communication meeting with the holders and the organizer was the underwriter. At the meeting, companies said that follow-up issues related to corporate bankruptcy were handed over to relevant working groups in the province to resolve, and it was inconvenient to disclose the time of entry and progress.
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