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Giant Group was founded on March 3, 2003, and in 2010, the company was the largest car dealer in China. According to the data, the giant group once had 1035 outlets across the country and Mongolia, including 834 specialty stores, 134 auto supermarkets and 69 shopping malls. However, the country's largest car dealer has now filed for bankruptcy and restructuring because it cannot afford to repay 17 million yuan of debt, with a shrinking market capitalization, a volatile company and huge profit losses.

In May this year, the giant group borrowed 17 million yuan from Beijing Jidongfeng, which was eventually appealed to the court by Beijing Jidongfeng because it was unable to repay it within the time limit. On September 5, the Intermediate people's Court of Tangshan City, Hebei Province ruled to accept Beijing Jidongfeng's application for the reorganization of the giant group, and appointed the giant automobile liquidation team as the manager on the same day. At present, the manager has identified the consortium composed of Shenzhen Shenshang Holdings Group Co., Ltd., Shenzhen Yuanwei Asset Management Co., Ltd. And Shenzhen National Transport Technology Group Co., Ltd. as the intended investors for this restructuring. During the period of reorganization, the company adopts the manager to manage the property and business model.

According to the company's response to the Shanghai Stock Exchange, the number of brand-licensed stores has shrunk from 418 on December 31, 2018 to 359 on June 30 this year.

As a car dealer, there are fewer and fewer brand authorized stores, and even there is no car to sell, resulting in a substantial reduction in the company's business and profits, but the main reason for the bankruptcy and restructuring of the company is the debt problem.

In 2017, the giant group was filed for investigation by the Securities Regulatory Commission on suspicion of violating securities laws and regulations, and the results of the investigation were announced in May 2018. The investigation shows that Pang Qinghua, the largest shareholder, failed to truthfully disclose the fact that his co-actors still actually controlled and owned the shares of a large group at that time, omitting to disclose his financing arrangements through the swap of income involved in the case. there are also false records and major omissions in the disclosure of the report on changes in Rights and interests.

In September 2018, a number of departments set up a financial debt committee on the debt of large groups, requiring creditors not to take measures such as litigation, seizure, seizure and asset freeze against large groups. But at this time, the huge group was powerless and had to file for bankruptcy restructuring in May this year. However, the huge after bankruptcy restructuring has not stopped saving itself.

Judging from the current situation of large groups, bankruptcy reorganization is the only way out, and it is also the best way out at present. It is understood that after being ST, the giant group, through multi-party negotiations, confirmed the formation of a consortium with Shenzhen Shenshang holding Group Co., Ltd., Shenzhen Yuanwei Asset Management Co., Ltd., and Shenzhen National Transportation Technology Group Co., Ltd., as intended investors, to participate in the restructuring with the giant group.

At present, the huge declaration and acceptance of creditor's rights has been carried out. According to the announcement, as of October 9, 2019, a total of 71 creditors declared their claims to the manager, with a total amount of 7.427 billion yuan. However, this does not mean all claims. On the one hand, the deadline for filing claims ends on October 18, 2019, and on the other hand, after the declaration is completed, the liquidation team also needs to verify claims. After the recognition of the creditor's rights is completed, giant will enter the asset evaluation process and put forward a restructuring plan.

According to the recent financial results released by the giant group, the company's operating income in the first three quarters was 16.11 billion yuan, down 56.44 percent from the same period last year. The net profit belonging to shareholders of listed companies lost 2.071 billion yuan, down 769.56 percent from the same period last year. Operating income reached 5.85 billion yuan in the third quarter of this year, down 56.44 percent from the same period last year. The net profit loss attributed to the listed parent company was 870 million yuan, an increase of 378 million yuan over the same period last year.

In view of the reasons for the decline in performance, the giant group said in the financial report that it was mainly due to the shortage of operating funds and insufficient procurement, resulting in a decline in sales.

It is worth noting that on the day the giant group released its financial results, it also adjusted the company's senior managers. according to its announcement, Wang Yusheng, deputy general manager of the company, submitted a written report. He resigned as deputy general manager of the company because he had reached retirement age, and would no longer hold any position in the company, and the giant group had approved his resignation.

In addition, the giant group has also removed he Jingyun, he Lixin, Sun Zhixin, Chen Xiguang, Zhao Xuri, Liu Zhenhong, Shen Baodong, an Shundong, Chen Zhiqi, Jiang Fengzhong, Cao Xuejun, Cao Lijun and Yang Heng from the positions of deputy general manager or assistant general manager. At the same time, the group will appoint Liu Tieliang as deputy general manager of the company.

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