AutoBeta(AutoBeta.net)04/21 Report--

On the evening of April 20, Jinbei Automobile and Shenhua Holdings announced that brilliance Group, the company's indirect controlling shareholder, had received a "prior notice of administrative punishment" from the China Securities Regulatory Commission. Brilliance Group disclosed 2017, 2018 annual reports suspected of false records and other problems, was fined a total of 53.6 million yuan, ordered to correct and given a warning.

The contents of the announcement show that brilliance Group's annual reports for 2017 and 2018 are suspected of having false records, brilliance Group is suspected of fraudulently obtaining approval for public issuance of corporate bonds with false declaration documents, brilliance Group is suspected of false records of non-public offering corporate bonds disclosure documents, brilliance Group is suspected of violating the law in disclosing information on the interbank bond market, brilliance Group is suspected of failing to disclose relevant information in a timely manner in accordance with regulations, and so on.

Based on the above illegal facts, according to the relevant provisions of the Securities Law of 2005 and the Securities Law of 2019, brilliance Group was ordered to correct, given a warning and fined, and a total fine of 53.6 million yuan was imposed on brilliance Group. Qi Yumin, former chairman of brilliance Group, imposed a fine of 600000 yuan, and now Yan Bingzhe, chairman of brilliance Group, imposed a fine of 200000 yuan.

Data show that brilliance Group is a large vehicle manufacturing enterprise controlled by Liaoning SASAC, and its main business income is vehicle manufacturing. Brilliance Group directly or indirectly controls and participates in four listed companies, and through its listed company brilliance China and BMW jointly established brilliance BMW. At present, brilliance Group has three independent brands of China, Golden Cup and Huasong and two joint venture brands of brilliance BMW and Huachen Renault.

On November 20, 2020, the Shenyang Intermediate people's Court ruled to accept the creditor's application for the reorganization of brilliance Group, which means that brilliance Group has officially entered the bankruptcy reorganization procedure. However, brilliance Group restructuring only involves its own brand sector, joint venture brands brilliance BMW, Huachen Renault will not be affected.

On January 27, Jinbei Automobile and Shenhua Holdings issued a notice that the controlling shareholders received a "notice" from the Shenyang Intermediate people's Court on January 26, respectively. The manager of brilliance Automobile Group Holdings Co., Ltd. applied to hear 12 enterprises, including brilliance Group, by means of substantive merger and reorganization. On March 3, the Shenyang Intermediate people's Court ruled that 12 enterprises, including brilliance Group, should be tried by substantive merger and reorganization, and appointed the manager of brilliance Group as the substantive merger and reorganization manager of 12 enterprises, including brilliance Group. On April 20, under the auspices of Shenyang Intermediate people's Court, the first creditors' meeting of the substantive merger and reorganization of 12 enterprises, including brilliance Group, was held through the National Enterprise bankruptcy reorganization case Information Network.

Data show that between 2015 and 2019, brilliance lost 3.5 billion yuan after excluding the profit share of BMW brilliance. According to the semi-annual report, brilliance made a net loss of 340 million yuan in the first half of 2020 after excluding its share of brilliance's profits. Brilliance was already heavily in debt before it was filed for bankruptcy restructuring, and as an established automaker, it was really sad.

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