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"good is expensive", "expensive is good" and "very expensive". This magical advertisement came from Bowo Automobile. Because the slogan was "shocking", it attracted a lot of attention on the Internet at that time, and even made Baowo car very popular for a while, but it was really only "very popular for a while", in the years after that. Only let people remember that "good is expensive", "expensive is good" and "very expensive" Bowo finally failed to come up with a new name in the domestic market.

On April 22, Futian Motor announced that Beijing Baowo's application for bankruptcy liquidation should be accepted by the Beijing No. 1 Intermediate people's Court (hereinafter referred to as "the Court") because Beijing Baowo could not pay off its maturing debts, and the audit report showed that Beijing Baowo was a qualified bankruptcy subject and had a reason for bankruptcy. To sum up, in accordance with Article 2, paragraph 1, Article 7, paragraph 1, of the Enterprise bankruptcy Law of the people's Republic of China, and Article 3 of the provisions of the Supreme people's Court on the Application of certain issues (1), the court ruled to accept the bankruptcy liquidation application of Beijing Baowo Motor Co., Ltd. This ruling shall take effect from this day.

Fukuda Motor said that the case is in the "bankruptcy liquidation has been accepted" stage, the case has not yet been heard, the final decision is uncertain. According to the meaning of Baidu, "bankruptcy liquidation" means that after declaring the bankruptcy of a joint stock limited company, the liquidation group will take over the company and liquidate, evaluate, dispose and distribute the bankruptcy property. In view of the impact of this case on Foton Motor, Foton Motor stressed that the bankruptcy liquidation of Beijing Baowo will not affect the company's existing main business and will not have a significant impact on the company's continued operation. Based on the principle of prudence, the company will set aside a large amount of impairment provision for Beijing Baowo loan, current arrears, guarantee matters and the recovery of Beijing Baowo equity held by the company. the above impairment is expected to affect the total profit of 2021-4.704 billion yuan. in addition, the company is expected to affect the total profit of-5.326 billion yuan due to the recognition of investment income due to the equity holding of Beijing Baowo. The impact of the above impairment items on the profits of 2021 is finally based on the data confirmed by the accountant's annual audit.

On the 8th of this month, Foton Motor announced that due to financial exhaustion, inability to pay off maturing debts, and insufficient assets to pay off all debts, Beijing Baowo held an interim shareholders' meeting on April 8, 2022. The resolution filed for bankruptcy liquidation in accordance with the law, and submitted the relevant application to the Beijing No. 1 Intermediate people's Court on April 8. But looking back on the past development of Beijing Baowo, it is not surprising that Beijing Baowo will face bankruptcy. As early as June last year, there was constant news of Bowo's bankruptcy in the market, and then the relevant reports were urgently deleted. In December 2021, Foton Motor announced that the assets related to Bowo had been seized by the Beijing No. 3 Intermediate people's Court, with a book value of 2.209 billion yuan, all of which were necessary for Bowo's production and operation. In January 2022, Fukuda Motor announced again that Bowo had entered a shutdown because it was unable to maintain its operation due to the depletion of funds. The assets deposited in the Miyun factory have been seized by the court as a whole, the external liabilities are basically overdue, and Bowo has become insolvent.

Foton Motor, a Chinese commercial vehicle brand, bought the Bowo brand for 5 million euros in 2014 and hopes to enter the passenger car market, according to public information. Beijing Baowo Automobile Co., Ltd. was established on January 18, 2016. The company is 75.2% owned by Shenzhou Youche (Xiamen) Information Technology Co., Ltd., and BAIC Futian Automobile Co., Ltd. holds 24.8%. At present, Chen Liangyun is the legal representative of Beijing Baowo, and the chairman is Lu Zhengyao.

In July 2016, Bowo launched its first SUV--BX7 to the domestic market, followed by BX5, BX7 TS, BXi7 and BX6. Since then, Bowo has built the SUV product matrix. It should be noted that when Bowo first landed in the Chinese market, Bowo once regarded itself as the "German top four", "BBBA" and other similar publicity, but the name of "German top four" can not make consumers buy it, nor can it bring sales growth. Bowo, which has a variety of products, sold only 44000 cars in 2017. According to the financial report, the net losses of Beijing Bowo from 2016 to 2018 were 484 million yuan, 985 million yuan and 2.54 billion yuan respectively, with a cumulative loss of 4.014 billion yuan over three years.

In May 2018, Foton issued a "three-year Action Plan" and decided to divest the loss-making passenger vehicle business and focus on the main business of commercial vehicles. In October of the same year, Foton Motor listed the transfer of 67% of Beijing Baowo's shares to Changsheng Xingye, which needs to repay 4.271 billion yuan of shareholder loans owed to Foton Motor in instalments within three years from the date of completion of the equity transfer. In March 2019, Shenzhou Youche was granted a 67 per cent stake in Beijing Baowo held by Sheng Xingye, which was transferred at a price of about 4.11 billion yuan. After the completion of the transaction, Shenzhou Youche directly became the largest shareholder in Beijing Baowo.

After Shenzhou Youche took over Bowo, Bowo's sales improved in a short time. In 2019, Bowo's annual sales were 54500, but the good times did not last long. Bowo soon fell into a sharp decline in sales. In 2020, Bowo's annual sales were only 8703, down more than 45000 from the same period last year. After 2021, Bowo's sales plunged again to 3612. Luckin Coffee was exposed in April 2020 financial fraud, coupled with the "China Department" long-term poor performance, affected by this, the relevant companies into a financial crisis. When buying Beijing Bowo, Shenzhou Youche announced that it would pay the price in cash before the specific date agreed between the two sides, but as of December 31, 2020, Futian had not received the above payment. According to the announcement of Foton Motor, as of December 31, 2021, the final payment and interest of Beijing Baowo equity transfer received by Foton Motor had not been recovered on time, and there was a risk that it could not be recovered. In order to safeguard its legitimate rights and interests, it applied to the Beijing Arbitration Commission for arbitration and preservation. The relevant arbitration case has been accepted by the court, and Lu Zhengyao has become one of the respondent.

According to enterprise investigations, Beijing Bowo Motor has been involved in 256 judicial cases, with the largest number of cases involving disputes over sales contracts, of which 81.25% are defendants. At present, the company has 33 records of the person subject to execution, the total amount of execution is about 239 million yuan, and 86 records of high consumption are restricted. in fact, in addition to a series of problems such as business operation, the lack of core technology leading to poor brand sales is also one of the reasons why Bowo went bankrupt. For Beijing Baowo, this situation may not be surprising, but for consumers, it is a bit worried, after all, the vehicle follow-up maintenance and quality assurance issues. According to relevant documents, Bowo Motor has a debt crisis and faces bankruptcy. With the support of the relevant departments of the government, Baogwo Automotive Technology (Beijing) Co., Ltd. fully undertakes the after-sales service of Baowo automobile, and continues to provide maintenance services and spare parts supply to car owners in accordance with the original after-sales service policy. However, no one knows how long such after-sales service will last. Bowo Motor is currently in the stage of "bankruptcy liquidation has been accepted". The case has not yet been heard, and there is uncertainty about the final decision.

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