AutoBeta(AutoBeta.net)01/04 Report--

Baiteng, an independent car company, has suffered a "shutdown" since the middle of last year due to financial and operational problems, and after a six-month shutdown, the company again issued a notice that it will extend the shutdown until June 2021 because it does not have the conditions to resume work and production.

According to the internal email of a "China suspension and production postponement notice" exposed by Geshi Automotive Media, Baiteng informed all employees in China (excluding Hong Kong) that since the company still does not have the conditions to resume work and production, the company has decided that from January 1, 2021, the shutdown time will be extended to June 30, 2021.

Baiteng has said that mainland employees in China are waiting for work and will not be assigned to work. The company does not have a full shutdown, and there will be employees who maintain the basic operation of the company to maintain their current status. Including the adjustment of employees' positions in connection with the company's new round of financing and restructuring. At the same time, during the period when the company stops work and production, the wages of the employees waiting for duty will also be paid in accordance with laws and regulations. Be sure to meet the requirements of local laws and regulations.

A person familiar with the matter close to Baiteng revealed that the main reason for the suspension of Baiteng car production is that the company's "financing is not in place" has a necessary connection.

In fact, at the end of June last year, Baiteng Motor informed all employees in China by internal email that the company had stopped production and all employees were waiting for work since July 1, and the company would no longer arrange work.

Since its establishment in 2017, Baiteng Automobile has conducted four rounds of financing with a total amount of about 8.4 billion yuan, and it is also a new power car-making enterprise favored by the outside world. The Baiteng Nanjing plant was completed in September 2019. Officials say the construction of the five major process workshops including stamping, welding, painting, final assembly and battery has been completed and the installation of major equipment has been completed and entered the commissioning stage. Baiteng expects the first model, the M-Byte, to go into production in mid-2020.

However, Baiteng ran out of money, to the point of shutdown, financing difficulties further exacerbated the company's operating crisis, and eventually led to employee wage arrears and shutdown.

With the withdrawal of rents for offices in Shanghai and Beijing, the Baiteng car shutdown has also been implemented. On June 30, 2020, the internal email of Baiteng Motor informed all the employees in China that the company had stopped production and all employees were waiting for duty from July 1, and the company would no longer arrange work. Biden said, "2020 is a difficult year, due to the global COVID-19 epidemic and other factors, the company's financing and production operations have encountered major challenges." After months of trial and effort, we still have to announce with regret that all companies in China (excluding Hong Kong) will stop production from July 1, 2020. " Now that the funds have been exhausted, it has been commented by CCTV that "it is impossible to build a mass production car by burning up 8.4 billion yuan."

However, it was also reported that there would be a restructuring plan, which began in October last year. The media learned from Baiteng insiders that the Baiteng restructuring plan has been approved by the shareholders' meeting and is being implemented. This means that since the shutdown at the end of June this year, Baiteng's restructuring strategy has made substantial progress.

It is worth mentioning that there have been recent media reports that Biden is in talks with Taiwanese manufacturer Foxconn. According to a person familiar with the matter, Foxconn plans to invest about $200m in Baiteng in order to enable mass production of Baiteng's first model, the M-Byte model, in the first quarter of 2022. The news could be announced as early as Monday, according to people familiar with the matter.

However, Foxconn and Baiteng did not respond to the press deadline.

The M-Byte, the production model of Baiteng, is its first model, and its biggest highlight is its 48-inch full screen. The car has been in trial production because it has been unable to raise funds for mass production, and the trial car has also been exposed.

Although there are frequent claims about the reorganization and investment of Baiteng Motor, which will also promote the listing of the first model of Baiteng Automobile, as the competition in the domestic new energy vehicle market becomes more and more fierce, the overall pattern tends to be stable, and Baiteng Motor re-enters the game. The pressure is also increasing. At present, the two founders of Baiteng, Bi Fukang and Dai Lei, have left one after another, and the actual head of the company has been changed to Ding Qingfen, the former chief affairs officer.

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