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On June 15, the new power car brand Bojun Motor issued a notice to its employees. Due to practical problems, the company decided to wait for duty from now on.

Boxun Automobile notice shows that employees pay 2480 yuan in living expenses while waiting for work, and the company pays social security and provident fund according to the base verified by the government; the number of days waiting for work offsets the annual leave. During the period of waiting for the post, the employee can go through the formalities of leaving; if the employment is realized, the two parties can terminate the labor relationship after informing the company.

Boxun said the decision was caused by practical problems such as shuttle buses, catering and air conditioning. Earlier, it was pointed out that the office of Boxun Automobile Shanghai Research Center had been in arrears for several months, and property managers had come to warn that if they did not pay the arrears, there would be water and power outages.

Founded in 2016, Boxun Automobile, formerly known as American Advanced vehicle Technology Co., Ltd. And Shanghai Sizhi Automotive Engineering Technology Co., Ltd., is engaged in chassis design and vehicle performance development services. As a member of independent new forces to build cars, after joining the manufacturing of new energy vehicles and the establishment of Boxun cars, Boxun signed an agreement with FAW Xiali in September 2019 to formally establish a joint venture "Tianjin Boxun Automobile Co., Ltd.". The registered capital of the joint venture company is 2.54 billion yuan, and Boxun contributes 2.034 billion yuan in cash, with a shareholding ratio of 80.1%. FAW Xiali contributed 505 million yuan with assets and liabilities related to land, plant, equipment, etc., with a shareholding ratio of 19.9%. At that time, the outside world thought that FAW Xiali was successfully reformed, and Boxun Automobile also got car-making resources.

According to SkyEye, Boxun Motor has completed six rounds of financing, the most recent of which was in June 2019, with 2.5 billion yuan from Pukou High Investment, Yuanxing Investment and Silver Saddle Capital. However, it has also been reported that the above-mentioned financing of 2.5 billion yuan is not fully in place. At the same time, FAW Xiali issued an announcement on May 28th that Boxun Motor only paid 14.1 million yuan in currency to the joint venture 'Tianjin Boxun', which is a far cry from the funds in the original agreement. FAW Xiali also stressed that Boxun has the right to terminate the agreement if it continues to default.

Due to financial problems and financing difficulties, Boxun Motors may give up building cars.

Huang Ximing, founder of Boxun Automobile, said in a letter on June 13 that due to the actual losses and adverse effects caused by the company's operating problems to all parties, it will strive to lead Boxun Motor out of its predicament.

"it is a great pity that at such a time, in this way, I would like to speak to all my friends who are concerned about the development of Boxun Automobile." Huang Ximing said that Boxun Automobile is currently experiencing serious business difficulties. I deeply apologize and blame myself for the actual losses and adverse effects on the development of employees, shareholders, suppliers, local governments and partners. At the same time, I also decided to continue to take the initiative. To control and recover the actual losses and adverse effects caused to all parties.

In addition to the changes in the market environment, Huang Ximing also attributed the company's financial difficulties to "missing a lot of financing opportunities", causing irreparable losses to the company's cash flow management.

In such a predicament, Boxun Motor decided to reposition the company's business model in order to form results and products, actively cooperate with foreign countries, strive to create positive cash flow, and strive to lead Boxun Automobile out of the predicament. Huang Ximing also hopes to get the understanding of all parties, leaving room and opportunities for fully fulfilling his duties and obligations.

It is reported that Boxun Automobile changed its "business model" because it was decided within the company that Zhang Chang, director of human resources, would take the lead to set up a new company to engage in consulting business. the new company will acquire "intangible assets" of the old company, including talent, data, intellectual property and supply chain, at a lower price, and the old company will obtain funds by selling these assets. After the funds are in place, priority will also be given to the payment of employees' wages in arrears and social security advances.

In 2020, the operation problems of Boxun Automobile and Tianjin Boxun, a joint venture company, gradually highlighted, the business of the company came to a standstill, and employees' salary and rights protection incidents occurred frequently. According to media reports, the factory inside the FAW Xiali plant is still at a standstill and has not been put into production since its establishment. Due to the delay in construction, employees in Bo County in Tianjin have only been paid twice, namely in December last year and April this year, and the wages owed in the rest of the month have not yet been paid. It is reported that at present, Boxun Automobile has been fully waiting for work, employees are asking for arrears of wages, decided to apply for labor arbitration, Boxun Automotive Shanghai office has been empty.

Boxun has planned two pure electric models, the iV6 and the iV7, which were originally planned to be produced by the joint venture Boxun in Tianjin, but mass production plans are a long way off. The problem of capital will become a dilemma faced by many car companies. As the market is not as expected, new power brands are facing a reshuffle, and it may eventually become a thing of the past if they fail to go public in mass production.

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