AutoBeta(AutoBeta.net)06/25 Report--

Due to financial problems, the new domestic car company Boxun Motor has announced that it has given up building cars and has implemented "full staff waiting for duty" from now on, and the joint venture with FAW Xiali has also come to a standstill. the company admitted that it had caused actual losses and adverse effects to employees, shareholders, suppliers, local governments and partners. What is even more surprising is that a number of media have reported that Huang Ximing, founder of Boxun Automobile, has gone to the United States and threatened to "not return to China."

Huang Ximing, founder of Boxun Automobile, has returned to the United States and said he is "not going back to China," Phoenix New Media said on June 24, citing people familiar with the matter. The person who broke the news was Huang Ximing's former colleague, and the reason why Boxun Automobile owed employees' wages, Huang Ximing, as a Boxun automobile legal person, was restricted from leaving the country, while Huang Ximing was still in China last Sunday. So I was surprised by the news that Huang Ximing went to the United States.

Therefore, in the new power car-building industry, following Letv Automobile Jia Yueting and Jiangsu Sailin Automobile Wang Xiaolin, Huang Ximing may become another person in charge of the car company to "flee."

Recently, Jiangsu Sailin Automobile Chairman Wang Xiaolin was publicly reported by former legal staff about "false technical contributions and suspected embezzlement of huge state assets." Jiangsu Sailin Automobile fell into a financial crisis. Wang Xiaolin said that the company's account was frozen by suppliers. Investors shelved 3 billion yuan of financing, the company may not be able to sustain. Wang Xiaolin also said that he was in the United States and could not return home because his air tickets were repeatedly cancelled. In view of the continuing ferment of the incident, Jiangsu Sailin employees are still seeking salary and safeguarding their rights.

Founded in 2016, Boxun Automotive, formerly known as Advanced vehicle Technology Co., Ltd. (AVT) and Shanghai Sizhi Automotive Engineering Technology Co., Ltd., is engaged in chassis design and vehicle performance development services. 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 is 2.54 billion yuan. Boxun contributed 2.034 billion yuan in cash, with a shareholding ratio of 80.1%. FAW Xiali contributed 505 million yuan in assets and liabilities related to land, plant, equipment and so on. The shareholding ratio is 19.9%. As a result, Bo County also has the qualification to build cars.

According to the agreement, within 30 days from the date of obtaining the business license, Boxun Motor has to complete the down payment of 1 billion yuan, and the remaining 1.0344 billion yuan must be paid within six months.

However, according to an announcement issued by FAW Xiali on May 28, 2020, Bojun Automobile only paid 14.1 million yuan in currency to Tianjin Boxun. FAW Xiali has sent 2 official letters and 3 lawyer letters to Boxun Automobile, requiring Boxun Automobile to fulfill its capital contribution obligations in accordance with the shareholders' agreement. Xiali stressed that it has the right to terminate the agreement if Bolshund continues to default.

The financial crisis of Boxun Automobile broke out at this point, the company's business came to a standstill, and employees asked for their salaries and rights frequently. Some media reported that 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.

Huang Ximing, founder of Boxun Motor, said in an open letter on June 13 that Boxun Motor is currently experiencing serious operational difficulties, which has caused actual losses and adverse effects on the development of employees, shareholders, suppliers, local governments and partners. I would like to express my deep apology and remorse. 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.

Boxun, which has basically abandoned car-building, and the planned iV6 and iV7 models, originally planned to be produced by the joint venture Boxun in Tianjin, are nowhere in sight for mass production.

A few years ago, the crazy influx of new car-building forces, in the new energy industry is not as expected and the rapid changes in the market environment, the capital problem is gradually highlighted. The new power car companies have entered a period of rapid reshuffle and elimination, and it may eventually become a thing of the past if they fail to go public in mass production.

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