AutoBeta(AutoBeta.net)11/14 Report--

On November 13, the National Enterprise bankruptcy reorganization Information Network released that Gezhi Automotive Technology Co., Ltd. applied to the Intermediate people's Court of Shenyang City, Liaoning Province for the reorganization of brilliance Automobile Group holding Co., Ltd. the case number is (2020) Liao 01 Breaking Shen 27.

According to Tianyan inspection information, Gezhi Technology is an automotive stamping die developer, engaged in the design, research, development, manufacture and sales of automotive stamping moulds. It mainly provides customized services for automotive stamping dies for automotive manufacturers and parts manufacturers around the world. Brilliance Automobile Group is all too familiar. It holds China, Golden Cup, Huasong, brilliance BMW and brilliance Renault brands. Its products cover passenger cars and commercial vehicles, and play an important role in China's automobile industry.

In fact, the news that brilliance will carry out judicial restructuring has spread widely for a long time. On November 3, media reported that the Liaoning provincial government had communicated with the financial regulatory authorities on the restructuring of brilliance Group, but there was no clear restructuring plan, and related issues were still under discussion. However, the report has not been confirmed.

Brilliance Automobile Group has filed for bankruptcy restructuring in the past 10 days alone. However, after the inquiry, it was found that there was no more information on the reason and process of brilliance's bankruptcy reorganization.

As an established auto company, brilliance Automobile Group was also expected to file for bankruptcy restructuring, which has attracted wide attention in the industry because of its huge debts and bond defaults.

Brilliance Automotive Group's bond semi-annual report for 2020 shows that the group's total debt is 132.844 billion yuan. After deducting goodwill and intangible assets, the asset-liability ratio is 71.4%, and the balance of cash and cash equivalents at the end of the period is 32.677 billion yuan.

Brilliance Automobile Group announced on October 24 that the maturity date of the private bond "17 Huaqi 05" is October 23, but it failed to pay the principal and interest of the bonds on time because of tight capital flows. Brilliance said that it will strive to raise funds to actively and properly solve the bond problem. On November 2, the Shanghai Stock Exchange announced a written warning to brilliance Automobile Group, involving irregularities such as untimely disclosure of information and failure to give risk reminders on time.

In fact, behind the brilliance auto debt crisis is the unspeakable concealment of the plight of the main auto business, with independent brands and joint venture brands showing polarized development.

Brilliance China's semi-annual report shows that brilliance's revenue in the first half of 2020 was 1.45 billion yuan, with a net profit of 4.025 billion yuan. However, excluding the 4.383 billion yuan net profit contributed by brilliance BMW, this means that brilliance China itself lost more than 340 million yuan.

Brilliance has been in a dilemma for a long time, losing 540 million yuan, 600 million yuan, 860 million yuan, 420 million yuan and 1.064 billion yuan respectively from 2015 to 2019, with a total loss of nearly 3.5 billion yuan. In contrast, brilliance BMW, a joint venture brand, has contributed 3.923 billion yuan, 3.993 billion yuan, 5.233 billion yuan, 6.245 billion yuan and 7.626 billion yuan to brilliance Automobile Group in the past five years, with a cumulative profit of 26.9 billion yuan.

It is worth noting that brilliance's days of lying down and making money are about to become a thing of the past. According to the agreement reached between brilliance and BMW, brilliance transferred 25 per cent of brilliance BMW to BMW at a price of 3.6 billion euros and extended the joint venture until 2040. At that time, BMW and brilliance will own 75% and 25% of brilliance BMW and will no longer be included in the brilliance merger. In other words, brilliance BMW's profit contribution to brilliance will be greatly reduced, while its own brand is still in deep trouble, brilliance Group's future is worrying.

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