AutoBeta(AutoBeta.net)08/21 Report--

Recently, Yao Zhenhua, chairman of Baoneng Group, said in an interview with the media: for some of the current tight capital chain problems in Baoneng Group, we will resolutely pay every penny "and will abide by the bottom line and principles of the market. Maintain the credibility foundation that the company has accumulated in the past 29 years. Yao Zhenhua said: repeated epidemic situations and economic fluctuations have had an impact on the development of many enterprises. Baoneng has also encountered phased difficulties, but it belongs to difficulties in development, and the total amount is small and within a controllable range. In the next step, strong and key measures will be taken to continuously withdraw funds, increase revenue and reduce expenditure, reduce costs and increase efficiency.

Some media reported that Yao Zhenhua's Baoneng Department is in an unprecedented predicament. Not only are Baoneng's wealth management products overdue, but also Baoneng's accumulated liabilities in trusts and banks are as high as 89.5 billion yuan.

According to reports, a number of Baoneng financial products investors recently reported that a number of Baoneng's recently expired wealth management products have been overdue. Overdue products involve the following categories: Baoneng faces targeted financing products that include internal employee subscription-Tianying, Tianxin, Guixin and other products; "Baoying No. 2 Private Investment Fund" issued by Shenzhen Hairun Fund Management Co., Ltd; "Baoying Amur001 Private Investment Fund" and "Pure debt No. 2 Private Investment Fund" issued by Qianhai Century Fund Management Co., Ltd.

According to sources, the financier is "Shenzhen Baoneng Investment Group Co., Ltd." and the "Minsheng Trust Zhixin 651 Baoneng Investment Trust loan pooled Fund Trust Plan" issued by Minsheng Trust is also overdue because Baoneng has not paid.

On August 20, Shenzhen Jusheng Hua Co., Ltd. issued a note on the market rumors, saying that it was concerned that the media had released the market rumors involving the company's controlling shareholder, Shenzhen Baoneng Investment Group Co., Ltd., the rumors mentioned that a number of Baoneng's recently expired wealth management products and trust products issued by China Minsheng Trust Co., Ltd. were overdue. After verification, Shenzhen Ju Shenghua found that Baoneng Investment Group issued "China Minsheng Trust-Zhixin 651 Baoneng Investment Trust loan Collective Fund Trust Plan" and some of Baoneng's gold exchange wealth management products failed to be repaid on time, there is a partial overdue phenomenon.

At this point, the overdue of Baoneng's trust plans and wealth management products has been proved. However, Shenzhen Jusheng Hua also said that as of the date of issuance, Baoneng Investment Group has reached a preliminary agreement with investors and Minsheng Trust on the deferred repayment plan, and will implement debt repayment funds through programs such as disposing of some assets and strategic focus on expenditure reduction, and is expected to complete the full repayment of relevant financial products and trust plans by the end of 2021. At the same time, it also stressed that the market rumors have not had a significant adverse impact on the company's day-to-day management, production and operation and solvency. It is worth noting that after Baoneng announced layoffs at the beginning of this year, Baoneng has another layoff plan recently. According to 36 Krypton's automotive new media platform Future Automotive Daily reported from a number of independent information sources, Baoneng Automobile sector has cut about 8400 people from about 23000 a year ago, and is still laying off hundreds of people a week, with the proportion of layoffs exceeding 65%. Among them, direct marketing, procurement and other departments have become "hardest hit areas". In addition, the manufacturing bases of Baoneng Automobile in Kunshan, Jiangsu, Kunming, Yunnan and Xi'an, Shaanxi are in a state of shutdown. I learned from the people's Daily-leader's message board that many netizens left messages that Baoneng Motor had arrears of wages, delayed payment of wages, social security withholding, and so on. So far, Baoneng Automobile and Baoneng Group have not responded to such news.

According to data, Baoneng Group began to enter the automotive industry in March 2017 and bought a 51% stake in Guanzhi Automobile in early 2018, becoming the controlling shareholder of Qoros Automobile. According to Tianyanchu data, the largest shareholder of Guanzhi Automobile is Hangzhou Chengmao Investment Co., Ltd., which is part of Baoneng Group. After the acquisition of Qoros, Baoneng Group has high hopes for Qoros. Yao Zhenhua, chairman of Baoneng Group, announced at the Qoros Automobile Dealers Conference in 2018 that for five consecutive years starting from 2018, 10 billion yuan will be invested in new car research and development every year, and 26 new models are expected to be launched by 2022. However, Baoneng did not perform well after taking over Qoros, rising 320 per cent year-on-year to 63000 in 2018, falling rapidly to 21900 in 2019 and just 14600 in 2020. According to the Federation of passengers, there were only 4603 Qoros from January to May this year, which is not only a month's sales of a mainstream model.

Baoneng launched the high-end new energy brand "BAO" on June 24th after it was exposed that it was in arrears. On the eve of launching the BAO brand, Baoneng Group also reached a strategic cooperation agreement with Guangzhou Development Zone. Baoneng New Energy Automobile Group Co., Ltd., a subsidiary of Baoneng Group, is headquartered in Guangzhou. State-owned enterprises in Guangzhou Development Zone will invest 12 billion yuan in Baoneng New Energy Strategy. As early as February this year, Toshiaki Otani, executive vice president of Baoneng Automobile Group, sent an internal email to all employees. Toshiaki Otani revealed in an email that five models of the Qoros brand under Baoneng Automobile will be released and listed in 2021, and the high-end car brand and the first electric car in preparation will be released and put on sale within this year. According to the plan, the BAO brand will launch at least 16 models within five years, including SUV, sedan, MPV, sports car and other models, gradually covering the high-end electric vehicle market segment. In 2021, BAO will launch two models, including an all-electric model and an add-on model. Among them, the first model (internal code GX16) is a pure electric SUV developed based on Baoneng's self-developed large-scale pure electric platform, which will provide rear-drive and all-wheel drive power forms, with expected mileage of 700km and 800km respectively, and the first pure electric product of Biao Kilai and Tesla.

According to the financial data released by Baoneng Group, by the end of 2020, the company's total assets were as high as 565.303 billion yuan, with net assets of only 59.18 billion yuan; by the end of 2019, the company's total assets were 455.25 billion yuan and net assets were 58.397 billion yuan. It is worth noting that in the past year, the net assets of Baoneng Group increased by less than 800 million yuan. For Baoneng, which makes cross-border cars, it remains to be seen whether it will succeed in launching high-end brands to compete with other brands in the new energy market. Some industry insiders said that although Baoneng Group is building factories and acquiring assets everywhere and plans to launch high-end brands, but there are very few results to be seen so far.

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