AutoBeta(AutoBeta.net)11/20 Report--

On November 20, the first day of Guangzhou Auto Show will be another auto event. But in the same day, there is a car company has reached the point of life and death. The Shenyang Intermediate people's Court ruled on the 20th to accept creditors' application for the restructuring of brilliance Automobile Group Holdings Co., Ltd., marking the auto company's formal entry into bankruptcy restructuring procedures, Xinhua reported.

According to the court's ruling, brilliance Group has insufficient assets to pay off all its debts and has the reasons for bankruptcy as stipulated in the Enterprise bankruptcy Law. But at the same time, the group has the value and possibility of rescue, and the necessity and feasibility of reorganization.

Earlier, a number of media reports said that people familiar with the matter said that brilliance would officially declare bankruptcy today, and that brilliance Group had held a board meeting on November 19 to make a relevant resolution. At the same time, Huachen Renault decided in the board of directors to complete the 600 million yuan capital injection of both sides, which is reported to be the last capital injection. But soon, the senior management of brilliance Group refuted the rumor.

In response to this news, Qi Kai, vice president of brilliance Group, responded to the Beijing News reporter, "I haven't heard, everything is normal." However, in the end, brilliance announced that it had officially entered the bankruptcy reorganization process.

In fact, on November 13, brilliance Automotive Group Holdings Co., Ltd. has been filed for bankruptcy reorganization, the applicant is Gezhi Automotive Technology Co., Ltd., case number (2020) Liao 01 Breaking Shen 27. Gezhi Automotive Technology Co., Ltd. is an automotive stamping die developer, engaged in automotive stamping die design, research and development, manufacturing and sales.

It is worth noting that before being filed for bankruptcy restructuring, brilliance had already attracted market attention because of its high debt and debt default.

Statistics show that brilliance's independent business has been losing money in recent years, losing 540 million yuan, 600 million yuan, 860 million yuan, 420 million yuan and 1.064 billion yuan respectively from 2015 to 2019, with a total loss of nearly 3.5 billion yuan. In contrast, BMW brilliance, a joint venture brand, has contributed 3.923 billion yuan, 3.993 billion yuan, 5.233 billion yuan, 6.245 billion yuan and 7.626 billion yuan to brilliance in the past five years, with a cumulative profit of 26.9 billion yuan.

Until earlier, brilliance China disclosed that its revenue for the first half of 2020 was 1.45 billion yuan, while its net profit was as high as 4.045 billion yuan. Excluding the net profit of 4.383 billion yuan contributed by BMW brilliance, brilliance China will lose 338 million yuan. It means that brilliance China mainly relies on brilliance BMW's "blood transfusion" to achieve large profits. In 2019, brilliance BMW contributed 7.626 billion yuan to brilliance China's profit, while brilliance China's independent business lost 864 million yuan.

According to public data on the Internet, brilliance was founded in 2002, with Yan Bingzhe as its legal representative. at present, the company has a total of 16 items of information about the person subject to execution, with a total amount of nearly 400 million yuan.

In addition, on October 23, brilliance Group's 1 billion yuan private debt "17 Huaqi 05" expired, and it was reported that brilliance Group had failed to pay on schedule.

At present, the news of brilliance's bankruptcy has gradually spread, which is also because brilliance's own brand models have little sense of existence in the domestic market. When it comes to brilliance, most of you can think of brilliance BMW, while independent business continues to stagnate or even lose money.

It is brilliance's own losses, coupled with only BMW's revenue, that brilliance has reached an agreement with BMW to transfer 25 per cent of brilliance to BMW for 3.6 billion euros and extend the joint venture until 2040. At that time, BMW and brilliance will own 75% and 25% of brilliance respectively, while brilliance BMW will no longer be included in the brilliance merger.

The person in charge of brilliance Group said that this restructuring only involves the independent brand section of the group headquarters, not the listed companies of the group and the joint ventures with BMW and Renault. As BMW's most important partner in China, the group is expected to be reborn after restructuring and try its best to recover creditors' losses. At the same time, brilliance BMW remains a stable source of profit in the future, and will continue to launch new products and expand its scale.

According to public information, brilliance's main business is vehicle manufacturing, with independent brands such as "brilliance China", "Hua Song" and "Golden Cup vehicles" and joint venture brands such as "brilliance BMW" and "Renault Golden Cup".

As a joint venture with BMW, the future operation of brilliance BMW, and whether the deal for BMW to increase its stake in brilliance BMW has changed, has sparked heated discussion among netizens. BMW responded that its deal to increase its stake in brilliance, a joint venture in China, would not be affected by the debt problems of its parent brilliance Automobile Group.

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