AutoBeta(AutoBeta.net)06/23 Report--

Baiteng Automobile, a new force in car building, encountered an operational crisis only two years ago, and the company came to a standstill due to financial difficulties. recently, it was exposed on the Internet that Baiteng employees were asking for wages and safeguarding their rights, involving thousands of people, and the factory owed water and electricity, as well as 470 million yuan in arrears of FAW Xiali.

In response to the matter, Baiteng Automobile responded that management and shareholders are actively responding to it and strive to resolve it properly as soon as possible. As for the company's financial problems, Baiteng revealed that the company is still in the stage of round C financing, and the financing plan has also been delayed due to the impact of the epidemic.

In November, Baiteng announced that it was in the final stages of $500m in C-round financing, some of which had already arrived, and revealed that the first model, the M-Byte, would be mass-produced at a factory in Nanjing in mid-2020. At present, the C-round financing of Baiteng Motor is uncertain, resulting in a shortage of funds. According to Tianyan investigation, Baiteng has completed five rounds of financing so far, totaling more than 1 billion US dollars, including FAW Group, Foxconn, Ningde Times and so on.

According to media reports, Baiteng Motor has owed nearly four months' salary to its employees, including the director level, involving nearly 1,000 people. Baiteng has not given a direct account so far, and there are no follow-up arrangements. It is said that Baiteng employees are planning to collectively protect their rights and ask for wages.

Due to financial problems, Baiteng Motor has made a decision to postpone the payment of employees' salaries. According to an internal document issued by Baiteng Motor on April 1, the basic salary of employees in Baiteng China from April to July will be pro rata. The company said that due to the impact of the COVID-19 epidemic on the global economy, the company's external business environment was facing tremendous changes. After discussion by the management, it was decided to implement a temporary employee compensation delay plan to reduce short-term fixed cost expenses for the company and deal with the impact of economic downside risks on the company's operations.

According to internal documents, the higher the salary of the Biden car position, the higher the proportion of deferred pay, with a director level of 45%. The company promised that part of the deferred salary would be paid in a lump sum along with August salary by September 7. And Baiteng core management collective pay reduction, the proportion of salary reduction is 70% Murray 80%, contributing to the cost reduction of the company.

BYTON, a new energy vehicle brand of Nanjing Zhixing New Energy Technology Development Co., Ltd., was founded in September 2017. its founder Dai Lei once worked in brilliance BMW and Infiniti China. Baiteng operating headquarters, manufacturing base and R & D center are all located in Nanjing.

In September 2018, Baiteng formally completed the acquisition of Tianjin FAW Huali and obtained the qualification to build a car. According to the announcement issued by FAW Xiali at that time, it transferred 100% of Tianjin FAW Huali Automobile to Baiteng at a transfer price of 1 yuan, while Baiteng had to bear 854.62 million yuan in debt and employee compensation. But on June 31, 2020, FAW Xiali issued an announcement saying that after negotiation, Baiteng must pay off the remaining arrears of 470 million yuan by October 31 this year.

It can be expected that Baiteng's first model, the M-Byte, will not be put into production on schedule because of the company's financial problems. M-Byte positioning in the high-end pure electric SUV, the biggest highlight of the car is equipped with a 48-inch touch screen, as well as a 7-inch driver touch screen, priced at 30-400000 yuan.

Whether Biden can tide over the difficulties or not, the key lies in whether the funds for round C financing are in place to solve the current funding problems of Baiteng. From Baiteng to Bo County, Sailin and other new car-building forces have business problems one after another, we can peep into the financial crisis faced by the current new forces car companies. Companies that cannot continue to receive external financial support may collectively collapse in 2020.

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