AutoBeta(AutoBeta.net)08/14 Report--

Recently, according to App, Weima Automotive Technology Group Co., Ltd. added a piece of information about the equity freeze of 6 billion yuan on Aug. 11. The equity is executed by Hubei Xinghui New Energy Intelligent Automobile Co., Ltd., and the enforcement court is Huanggang City Intermediate people's Court. The freeze period is three years, starting from August 11, 2023 to August 10, 2026.

It is worth noting that, in addition to this equity freeze, the automobile industry focused on consulting Hubei Xinghui New Energy Intelligent Automobile Co., Ltd. on the website page of the national enterprise credit information publicity system. The company has added an equity freeze information on July 28, 2023 to July 27, 2026. The frozen equity amount is about 19.6762 million RMB. According to the Tianyancha related case, the case involves sales contract disputes between Zhejiang Lihua Group Co., Ltd., Weima Automotive Technology Group Co., Ltd., and Weima New Energy Automobile Purchasing (Shanghai) Co., Ltd., and the case will be heard on September 1.

Relevant data show that Hubei Xinghui New Energy Intelligent Automobile Co., Ltd. was established in April 2017. the legal representative is Shen Hui, with a registered capital of 6 billion yuan, which is wholly owned by Weima Automotive Technology Group Co., Ltd. The company's business scope includes new energy smart vehicles, vehicle and related parts manufacturing, sales, after-sales service, new energy can only vehicle and vehicle design, research and development and related technical consultation. The company is wholly owned by Weima Automotive Technology Group Co., Ltd.

In fact, Weimar has been in financial crisis since last year, and many of its affiliated companies have frozen the information and funds of the person subject to execution. In addition, news about layoffs and pay cuts, factory closures, store closures, arrears of rent and property fees in the headquarters building, and after-sales stagnation are endless. Although, Weima Automobile's car-building starting point is not low, in 2019, the delivery volume of Weima Automobile even reached 16900, ranking second in the list of new car-building forces, second only to the 20600 cars of Xilai Motors. At that time, it was in the first echelon of the new car-building forces and was favored by the industry.

However, after 2020, due to the fierce market competition, low production capacity and other factors, Weima car sales began to decline gradually, "Wei Xiaoli" has become the mainstream of the market, Weima also began to be marginalized. According to relevant data, the sales of the three Wei Xiaoli companies all exceeded 90, 000 vehicles in 2021, while Weima sold only 44000 vehicles in 2021, lagging behind more than half of Wei Xiaoli's sales. In 2022, the situation of Weima did not improve, and sales fell again to 34600 vehicles in 2022, down 2.83% from the same period last year. As a comparison, the sales of the three "Wei Xiaoli" car companies all exceeded 100000 vehicles in 2022.

Sales are not good, the financial situation is naturally unable to keep up with the demand, followed by production, sales, after-sales service of the three main operational links of derailment, triggered a series of crises of Weima Motor. Relevant data show that from 2019 to 2021, the revenue of Weima Motor is 1.7621 billion yuan, 2.6717 billion yuan and 4.7425 billion yuan respectively, and the net loss is 4.145 billion yuan, 5.084 billion yuan and 8.206 billion yuan respectively. By the end of 2021, Weimar's asset-liability ratio was as high as 202.36%, making it seriously insolvent. As of March 31, 2022, the remaining cash and cash equivalents on the books of Weima Motor is 3.678 billion yuan.

In order to survive, Weimar has also made a series of adjustment measures. In November last year, Weimar released an internal communication entitled "working together to tide over the difficulties", which said: "in response to financial pressure, a series of financial measures will be taken to reduce operating costs, including salary cuts for executives and employees. In January this year, Weimar launched the reverse backdoor APOLLO travel curve listing plan, hoping to raise funds through backdoor listing. Shen Hui, CEO of Weimar, also posted on Weibo on March 17 that Weima did encounter some difficulties in the past year because of the objective influence of the environment and market environment. It said that Weimar is adjusting through a series of measures to reduce costs and increase efficiency, to ensure the resumption of work and production, and to ensure the experience of end users. Weimar is expected to resume production and normal operation in the near future, Weimar's official Weibo post said on July 4. Although Weimar has been saying that it will resume production as soon as possible, there is no official news about resuming work and production. In this situation, it is not difficult to see that Weimar is still facing a huge financial crisis.

Weimar posted a picture of its vehicles exported overseas on its official Weibo account on July 25, saying it was ready to go. Maybe Weimar hopes to use vehicle export as a breakthrough to get out of trouble. However, the overseas market has become an important venue for many car companies to compete for market share, and the overseas market is not an easy way for Weima Automobile. At present, the problem that Weima Motor is facing is not only the financial problem, but also the low competitiveness and low popularity of its products in the car market.

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