AutoBeta(AutoBeta.net)04/13 Report--

On April 12, Zhongtai Automobile announced that according to the written resignation report submitted by Mr. Liu Huijun, Vice President of the company, Mr. Liu Huijun resigned as Vice President of the company for personal reasons. Mr. Liu Huijun will no longer hold any other positions in the company after resigning as vice president of the company. It is worth mentioning that the senior management of Zhongtai Motor left, and today the stock once again triggered the limit board.

It is understood that Liu Huijun is also one of the important management of Zhongtai Automobile. According to Zhongtai Automobile's 2019 results, Liu Huijun's total pre-tax compensation was 897900 yuan, making him the second highest-paid executive in the company, second only to Vice President Ma Deren. Data show that Liu Huijun was born in February 1964 and has worked in FAW-Volkswagen and Chery Automobile. In 2010, Liu Huijun left Chery Automobile and went to Zhongtai Automobile, where he served as Vice President of Zhongtai Automobile and Director of Zhongtai Automotive Engineering Research Institute.

During his tenure, his first project was to lead a team to develop the Zhongtai Z300 (the old prototype Toyota ALLION), which became a hot-selling model in the market. Later, Zhongtai T600 which looks like Audi Q5, Zhongtai Z700 that looks like Audi A6L and Zhongtai SR7 that looks like Audi Q3 have been developed one after another, and what makes Zhongtai Motor known as "ruler department" is SR9, which once became a best-selling model in the market because of its resemblance to Porsche Macan.

After a series of operations, Zhongtai Automobile also has an unknown small factory to become a well-known independent car company in China. Data show that the cumulative sales of Zhongtai Automobile reached 333100 in 2016, which is the peak of Zhongtai Automobile sales. Cumulative car sales in 2017 were 317000, more than 300000 for the second year in a row. In April 2017, Jinma shares controlled by Tieniu Group bought Zhongtai Automobile for 11.6 billion yuan, injected its assets into the listed company, and completed the restructuring and listing after officially changing its name to "Zhongtai Automobile".

In this context, Zhongtai Automobile not only does not pay attention to the research and development of technical reserves, but more focused on the appearance of the design, resulting in its terminal competitiveness in the domestic brand is getting weaker and weaker, and the product criticism is becoming more and more serious. In 2019, there were problems in the production and operation of Zhongtai Motor. Finally, the annual loss reached 11.19 billion yuan, and the annual sales fell to 21200 vehicles.

After entering 2020, the situation of Zhongtai Motor has not improved. Zhongtai Automobile said that in 2020, due to the company's lack of liquidity, vehicle production was almost at a standstill, and its revenue mainly came from the sales of auto parts. Zhongtai Automobile expects a net profit loss of about 6 billion yuan to 9 billion yuan in 2020.

Production of the whole vehicle has almost stopped, and the research and development business of Zhongtai Automobile, which suffers from financial pressure, has to be stopped. At the end of last year, an internal document of Zhongtai Automobile was "notice on the holiday of the General Research Institute". The notice shows that according to the company's research and decision, from November 30, 2020, all the staff of the Research Institute will have a holiday, and the staff who will return to work and the time will be notified separately. At the same time, Zhongtai Automobile requires that during the holiday period, arrange personnel to do a good job in the safety and protection of technical data and other assets.

Liu Huijun's resignation is just a microcosm of Zhongtai Automobile. It is understood that Jin Zheyong, then chairman of Zhongtai Automobile, Ma Deren, vice president, and Ying Jianren, director of the board of directors, have all resigned. At the same time, Zhongtai Automobile is in the stage of restructuring, and it is still unknown as to what kind of company it is.

It is worth mentioning that Zhongtai Automobile at that time was in the restructuring stage, production and operation basically stagnated, but the capital market was extremely hot. On April 13, Zhongtai Motor once again triggered the limit board, rising from 1.14 yuan on January 11 to the current 3.80 yuan, an increase of 216.67%.

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