AutoBeta(AutoBeta.net)03/31 Report--

On March 29, brilliance China Automotive Holdings Limited (hereinafter referred to as "brilliance China") released its annual financial report for the year ended December 31, 2022. According to the financial report, brilliance China's comprehensive income in 2022 was 1.131 billion yuan, down 47.2% from the same period last year, and the profit attributable to shareholders was 7.147 billion yuan, down 40.25% from the same period last year.

According to the financial report, brilliance's main business in China is the main associate brilliance BMW Co., Ltd. (hereinafter referred to as "brilliance BMW") manufacturing and selling BMW cars in China. Subsidiaries Ningbo Yumin Machinery Industry Co., Ltd. (hereinafter referred to as "Ningbo Yumin") and Mianyang brilliance Ruian Auto parts Co., Ltd. (hereinafter referred to as "Mianyang Ruian") manufacture and sell auto parts. Brilliance East Asia Auto Finance Limited (hereinafter referred to as "brilliance East Asia Auto Finance") provides auto financing services.

Brilliance China said that the decrease in consolidated revenue was mainly due to the exclusion of Light bus and MPVs sales of Huachen Renault. In addition, COVID-19 's epidemic interfered with business operations, resulting in a significant reduction in auto finance revenue from brilliance East Asia.

It is understood that brilliance Renault Golden Cup Automobile Co., Ltd. (hereinafter referred to as "brilliance Renault"), a subsidiary engaged in the manufacture and sale of light passenger cars and multi-purpose vehicles, is undergoing bankruptcy reorganization, and the reorganization application has been accepted by the Shenyang Intermediate people's Court, but the bankruptcy reorganization plan has not yet been announced. Shenyang brilliance Jindong Industrial Development Co., Ltd. (hereinafter referred to as "brilliance Jindong") was filed for bankruptcy reorganization by creditors because it failed to repay its debts, and then accepted the application for bankruptcy reorganization by the Shenyang Dadong District people's Court. Brilliance China lost control of the two subsidiaries, the financial statements are no longer recorded.

On February 11, 2022, BMW Group announced that its joint venture brilliance BMW in China had obtained a new license. BMW Group's shareholding in brilliance BMW had increased from 50% to 75%, and brilliance Group continued to own 25% of brilliance BMW. With the change of brilliance's stake in BMW, brilliance BMW was merged into the BMW Group, and brilliance China's contribution profit as a joint venture shrank to 2.38 billion yuan from 14.52 billion yuan in 2021, down 83.6 per cent from a year earlier.

Brilliance BMW sold 654000 vehicles in 2022, up 0.4 per cent from a year earlier, according to the Federation of passengers. On March 30th, brilliance BMW X5 went on sale, offering 2.0T and 3.0T engines, with a price range of 60.5-635000 yuan for the 2.0T version and 70.5-775000 yuan for the 3.0T version. At this point, the BMW X5 has also become the first medium-and large-scale SUV of the three luxury brands of BBA. On the same day, brilliance BMW i3 went on the market, which can be directly regarded as a BMW 3-series oil-to-electric model with a price of 349900 yuan. At the Chengdu Auto Show, the mid-term revamped BMW 3-Series went on the market with a price range of 29.99-399900 yuan.

On the day of the announcement of the results, Jinbei Automobile and Shenhua Holdings successively disclosed the latest progress of the bankruptcy restructuring of brilliance Automobile Group Holdings Limited (hereinafter referred to as "brilliance Group"), one of the controlling shareholders of brilliance China.

On March 29, Jinbei Automobile announced that the managers of 12 enterprises, including indirect controlling shareholder brilliance Motor, had issued the announcement on the third recruitment and reorganization of investors in the substantive merger and reorganization of 12 enterprises, including brilliance Automobile Group Holdings Co., Ltd., on February 23, 2023. According to the regulations, qualified prospective investors should submit investment plans for all or part of the assets of 12 enterprises, including brilliance Group, to the manager before 18:00 on May 19, 2023, and the manager will review the reorganization investment plan.

Data show that since the beginning of substantive merger and reorganization on March 3, 2021, the substantive merger and reorganization cases of 12 enterprises, including brilliance Group, have held three creditor meetings successively, but the reorganization Plan (draft) has not been passed by vote for a long time. Public data show that as of June 1 last year, 6029 creditors had declared their claims to brilliance Group. If the undeclared and undeclared parts are included, the total debt of brilliance Group is as high as 71.798 billion yuan. In the face of high debt, in addition to Jinbei Automobile and Shenhua Holdings, other assets under brilliance Group are basically in a state of "no one cares". For the reasons why the bankruptcy restructuring plan failed to pass the vote for many times, some people familiar with the matter said that the creditors did not reach an agreement mainly on the disposal of key assets.

In order to promote the smooth progress of the bankruptcy reorganization of brilliance Group, on December 10, 2022 and March 15, 2023, the Shenyang Intermediate people's Court adjusted the liquidation group of brilliance Group. The bankruptcy reorganization of 12 enterprises, including brilliance Group, has also ushered in the third recruitment of restructuring investors, and the bankruptcy reorganization plan will also usher in new adjustments.

At present, brilliance is still in a state of restructuring, and it is still unknown who will become brilliance's white guard, but as a large vehicle manufacturer and as a partner of BMW Group, brilliance will not "die". However, after losing control of brilliance BMW, it has been difficult to return to China's mainstream auto market. With the transformation of automobile electrification and intelligence, the global automobile industry is reshuffling in the wave of change, and the future restructuring of brilliance Group is still full of fog.

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