AutoBeta(AutoBeta.net)06/29 Report--

On June 28, brilliance Automobile official account announced that brilliance held a cadre meeting to announce the decision of Liaoning Provincial CPC Committee: Shen Tiedong was appointed party committee secretary and chairman of brilliance Group, and Yan Bingzhe was no longer party committee secretary and chairman of brilliance Group.

Shen Tiedong was not born in the auto industry. According to the data, Shen Tiedong graduated from the Department of Economics of Liaoning University with a bachelor's degree in political economy with a doctorate degree and a senior economist. He has served as vice mayor of Panjin Municipal people's Government, member of the standing Committee of Panjin Municipal Party Committee, Secretary-General and so on. Later, he was transferred to deputy secretary of the party committee, vice chairman and general manager of Liaoning Energy Investment (Group) Co., Ltd. before becoming chairman of brilliance Automobile, he was the party committee secretary and chairman of Liaoning Environmental Protection Group Co., Ltd.

Judging from his resume, although he is not from the auto industry, he has a wealth of experience in the government and enterprises, and may be able to put the restructuring plan on the agenda. Some industry insiders said that Yan Bingzhe, the current chairman of brilliance Group, has a term of office of only three years. Brilliance is currently in a critical stage of restructuring. Shen Tiedong, who has a government background, was appointed as chairman of brilliance at this time. It may indicate that the investor of brilliance Group has emerged. After all, brilliance Provincial SASAC accounts for 85% of the shares.

According to public data, Yan Bingzhe, former vice mayor of Shenyang, succeeded Qi Yumin as chairman of brilliance Group on April 1, 2019, but failed to lead brilliance out of the dilemma of expanding losses. On November 20, 2020, brilliance Group officially entered the bankruptcy reorganization process. At present, the company is still in the reorganization stage, and there has been no substantial progress so far. On June 19, 2021, Liaoning Procuratorate announced that Qi Yumin, former party committee secretary and chairman of brilliance Automobile Group Holdings Co., Ltd., was suspected of bribery, misappropriation of public funds, and abuse of power by personnel of a state-owned company, which was investigated by the Liaoning Provincial Supervisory Commission and transferred to the procuratorial organ for examination and prosecution. The Chaoyang people's Procuratorate made a decision to arrest Qi Yumin on suspicion of accepting bribes, embezzlement of public funds, and abuse of power by personnel of state-owned companies.

For the new boss, how to help brilliance tide over the difficulties is also a question that Shen Tiedong needs to think about. According to the financial report, brilliance lost 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, BMW brilliance, 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 in the past five years, with a cumulative profit of 26.9 billion yuan. In the first half of 2020, brilliance made a net profit of 4.045 billion yuan, but excluding brilliance BMW's net profit contribution of 4.383 billion yuan, brilliance China lost 338 million yuan.

In Qi Yumin's last year in office, brilliance and BMW jointly announced that brilliance intends to sell a 25 per cent stake in brilliance to BMW by 2022 at a transaction price of 29 billion yuan. Brilliance BMW will become the first foreign-controlled joint venture. In other words, brilliance BMW's contribution to brilliance Automobile Group will be greatly reduced in the future. Brilliance Automobile Group needs to realize the self-hematopoiesis of its own brand after completing the restructuring, which is the biggest problem facing brilliance Automobile Group. It is also the biggest problem after Shen Tiedong took office. Industry insiders said that Shen Tiedong needs to reform brilliance Group to help enterprises find a direction after helping brilliance Group tide over the difficulties.

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