AutoBeta(AutoBeta.net)07/18 Report--

On the evening of July 17, dawning issued an announcement on judicial freezing of major shareholders' shares that all shares held by the company's major shareholder Huatai Automobile Group Co., Ltd. (hereinafter referred to as "Huatai Automobile") were frozen on the judicial waiting list. It is understood that Huatai Motor holds 134 million dawning shares for unlimited sale and circulation, accounting for 19.77% of the total share capital of dawning shares. The starting date of the freeze is July 16, 2020, and the freeze period is three years, calculated from the date of conversion to the formal freeze.

However, dawning shares are also clear that Huatai Motor and its assets, business, financial and other aspects remain independent. The freezing of the shares on the waiting list will not affect the normal operation, control, ownership structure and corporate governance of the company.

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, Huatai B11 and other car models, but due to financial problems in car production, sales and operation, news of arrears of employees' wages and payment to distribution suppliers also emerge one after another.

In October last year, the media exposed an email screenshot online that Huatai would start bankruptcy liquidation proceedings after the end of 2019, but the news was denied by Huatai. However, many people in the industry believe that Huatai Motor's refutation of the rumor appears pale, arrears of wages to employees and arrears to dealers, factory shutdowns and distribution stores have no cars to sell, although Huatai Motors did not liquidate in 2019, but it actually exists in name only.

At the beginning of this year, due to the serious impact of the COVID-19 epidemic in China, many car companies showed great pressure in operation and introduced measures such as layoffs and salary cuts to reduce the impact of the epidemic on companies. However, in this process, there is very little news about Huatai Automobile, neither layoffs nor salary cuts, and there are only a handful of news about employees' rights. In the case of the rapid development of other independent brands, Huatai Motor is out of view is not a good thing, but reflects that Huatai Motor has encountered great difficulties.

CCTV has quoted industry insiders to analyze and report that at present, China's automobile industry is in a period of integration, and China's automobile industry, like household appliances and mobile phones, will go through a relatively tragic process of integration. Leading car companies will have more competitive advantages under the scale effect. It means that the concentration of the market continues to integrate to the head enterprises, while weak brands are difficult to avoid the fate of being eliminated. In this context, car companies without brands, core technology and capital will collapse one after another.

For Huatai Automobile, which has already stopped production, all its executives have left, its dealer system has collapsed, and it has not officially withdrawn from the market, it actually exists in name only. This may be Huatai's last dignity in the market. Huatai car sales were 0 in the first half of this year, according to the Federation of passengers.

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