AutoBeta(AutoBeta.net)11/02 Report--

Dawning shares announced on the evening of November 1st, Huatai Motor and Changan International Trust, the majority shareholder Huatai Automobile and Changan International Trust due to a bond trading dispute, Huatai Motor held unlimited sales of 134 million shares of the same shares were frozen by the judicial queue. The freeze period is three years. In addition, the announcement also disclosed the current situation of Huatai Automobile, which currently involves liabilities of 2.212 billion yuan.

It is worth noting that the queuing freeze is the third time Huatai Motor has been judicially frozen since June.

On August 29th, Kyushu Securities applied to freeze the unlimited sale and return of 130 million shares held by Huatai Motor for a period of three years.

On September 27th, Cheung Kong Securities applied for a three-year freeze on the unlimited sale of tradable shares and interest of 130 million shares held by Huatai Motor due to a bond trading dispute.

Data show that Huatai Automobile was founded on December 18, 2000, is a new energy vehicles, traditional cars and auto parts as the main business of the independent brand car company. Huatai has launched three SUV models, Santa Fe, Traka and Polige, as well as Lusheng E70 and Huatai B11, but because of its limited technology, Huatai can only rely on imitation, so Huatai has been burdened with the title of "shanzhai" for a long time.

In July 2017, dawning Group transferred 5.28% of Liaoning dawning shares to Huatai Automobile, but Huatai Automobile had many problems and did not complete the acquisition of dawning shares until September 27, 2018.

In October, after the completion of the acquisition, dawning issued an announcement on the equity pledge of Huatai Motor, a major shareholder, with the proportion of pledge reaching 73%. On November 30, dawning again issued an announcement that the shares of major shareholders had been pledged. Huatai Automobile's 134 million shares of dawning Group were frozen.

What is worrying, however, is that after Huatai acquired a stake in dawning, dawning's profits routed again and again.

In 2017, the net profit of dawning shares was still 316 million yuan. After Huatai Motor acquired dawning shares in 2018, the net profit loss was 128 million yuan. The net profit loss of dawning shares in the first half of this year was 90 million yuan, down-975.28% from the same period last year.

The profit of dawning shares has been declining, which has a lot to do with Huatai Motor.

Huatai Automobile has four automobile production bases in Tianjin, Shandong, Ordos, Inner Mongolia and Dandong, Liaoning. The production base in Tianjin was shut down in 2018, and the Ordos factory has grown more than half a meter of barren grass. Due to the sharp decline in production and sales, Huatai Motor's four car production bases have all stopped production.

What is saddening is that Huatai lied about its sales figures. In 2010, Huatai reported sales of 81435 vehicles to the China Automobile Association, an increase of 30560 over the same period last year, but the actual number of Huatai cars in 2010 was 15950, an increase of only 1280 over 2009. Because of serious misrepresentation, the China Automobile Association once showed Huatai's sales as zero in the production and Marketing Express in 2011.

In recent years, Huatai Automobile has been plagued by funds because of automobile production, marketing and operation problems, and the news of arrears of employees' wages and payment to distribution suppliers also emerge one after another.

Since last year, Huatai Automobile has been exposed that it is in arrears with employees' wages and distribution suppliers. In January this year, an internal employee posted a "help letter on Huatai Automobile's arrears of employees' wages" saying that they had not received their wages for many months. the company's management also has varying degrees of arrears in wages.

A year has passed, Huatai Motor's business situation has not improved, but can not extricate itself from the negative news.

Huatai Motor has not made a profit for two years, and there are no dealerships in Beijing. In addition to the suspension of production, unpaid wages and no cars to sell, Huatai Motor also faces hundreds of lawsuits with a high debt ratio, and it is almost impossible to raise money at present.

Huatai Automobile announced through its official Weibo that it had reached a strategic cooperation with real estate company R & F Group, which took a stake in Huatai Automobile and joined hands to develop the new energy automobile industry.

On August 22, R & F Real Estate said that it had suspended all cooperation with Huatai Motors. Before that, the two sides were only an intention to cooperate, and there was no such thing as a full adjustment, let alone a stake.

It is worth mentioning that on October 8 this year, the media exposed a screenshot of a Chinese car company going bankrupt at the end of the year. Huatai and three other companies were on the list, but Huatai also issued a statement on the matter. it said that there was no bankruptcy and that its dawning shares were in good condition.

According to the above overview, Huatai Automobile's shares in dawning Group have been judicially frozen many times, and there are reports that all the bank deposits under Huatai Automobile Group add up to only 130000 yuan. The cumulative amount of debt is as high as 37.766 billion yuan. Although the bankruptcy is an own incident, many netizens believe that, after all, Huatai is "old, weak, sick and disabled". Whether it will survive 2019 remains to be seen.

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