AutoBeta(AutoBeta.net)09/01 Report--

According to Caijing Automobile, on August 31, the substantive merger and reorganization of 12 enterprises, including brilliance Group, held its second creditors' meeting, at which there were three motions, including property management and price change plans, two proposals for the establishment of a creditor committee, and the core proposal for BMW China to acquire brilliance China Brand. All three bills were passed by the vote of the creditors.

It is reported that BMW China will acquire brilliance-related assets and brilliance manufacturing shares, including land use rights, buildings, machinery and equipment, as well as brilliance Group's 100 per cent stake in brilliance Automobile Manufacturing Co., Ltd., totaling 1.633 billion yuan. One creditor said brilliance's assets would be used to produce BMW-related products, after which the Chinese brand would cease to exist.

A person close to brilliance BMW said that brilliance has a number of parts companies responsible for supplying brilliance BMW, coinciding with the new year of brilliance BMW products and sales. To this end, brilliance BMW has also made various efforts to ensure the normal operation of the above-mentioned supply chain enterprises.

In response to the above reports, BMW China responded to the media: "with the strong support of Liaoning Province and Shenyang Municipal Government, BMW Group has established a strong cooperative relationship with brilliance Group over the past 18 years. For BMW, Liaoning Province and Shenyang have become key innovation and production bases in China, as well as the cornerstone of our future success in China. We hope to support the restructuring of brilliance with practical actions and are committed to further expanding our business in Liaoning Province. We hope to use the existing production capacity of brilliance Automobile Manufacturing Co., Ltd. However, the project is still in the approval process of the relevant departments. Please understand that we are unable to provide detailed information at this time. More information will be released later. " As for brilliance, there was no response as of press time.

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, including brilliance China, Shenhua Holdings, Jinbei Automobile and Xinchen Power. 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.

Brilliance Automobile Group, which looks like a huge scale, is actually flashy. Brilliance Group's profit support basically comes from brilliance BMW. Judging from the operation situation in the past five years, brilliance Automobile Group realized net profit of 3.494 billion yuan, 3.682 billion yuan, 4.376 billion yuan, 5.876 billion yuan and 6.763 billion yuan respectively from 2015 to 2019. Excluding brilliance BMW, the net loss was 334 million yuan, 316 million yuan, 862 million yuan, 424 million yuan and 863 million yuan. In the first half of 2020, the net profit of brilliance Group increased by 25.24% over the same period last year to 4.045 billion yuan. But excluding brilliance BMW, the net loss was 340 million yuan. As of press time, brilliance has not yet released its annual report for 2020 and interim report for 2021.

On November 20, 2020, the Shenyang Intermediate people's Court ruled to accept the creditor's application for the reorganization of brilliance Automobile Group Holdings Co., Ltd., which also means that the independent car company has officially entered the bankruptcy reorganization process. The ruling shows that brilliance Group has the situation that its assets are insufficient to pay off all its debts, and it has the bankruptcy reasons stipulated in the enterprise bankruptcy law, but at the same time, the group has the value and possibility of rescue, and the necessity and feasibility of reorganization.

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. At the second creditors' meeting, brilliance Group said that as of August 13, 2021, a total of 6005 creditors had declared their claims to the manager, with the amount of claims about 54.313 billion yuan. The amount of claims initially determined and suspended by the manager is about 49.983 billion yuan. In addition, according to the survey, it is estimated that the employee's claims and undeclared claims are about 12.001 billion yuan. Therefore, the total estimated liabilities of 12 enterprises, including brilliance Group, are 61.984 billion yuan.

Cui Dongshu, secretary general of the Federation of passengers, believes that brilliance Group originally had a good foundation, no matter BMW or Golden Cup, were in the leading position, but brilliance Group did not continue to strengthen independent technology research and development to ensure the continuous improvement of product strength, but in the face of regulations and fierce competition, it finally had today's dilemma, and its failure experience should be used for reference by all car companies.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat