AutoBeta(AutoBeta.net)04/21 Report--

According to Tianyan investigation information, on April 20, Bowo Motor (China) Co., Ltd. added two new bankruptcy reorganization cases, the types of cases are bankruptcy review case and bankruptcy case, the applicant and the respondent are both Bao Wo Automobile (China) Co., Ltd., and the handling court is the Beijing No. 1 Intermediate people's Court.

According to the relevant ruling, Bowo Automobile (China) Co., Ltd. applied to the court for bankruptcy liquidation on the grounds that it could not pay off its maturing debts and that its assets were insufficient to pay off all its debts. The court held that the company was the qualified subject of the bankruptcy application and had the reasons for bankruptcy, so the bankruptcy liquidation application was accepted.

Baowo Automobile (China) Co., Ltd., located in Beijing, was established in July 2015. its legal representative is Sujiashui, with registered capital of 114.21635 million yuan and paid-in capital of 114.21635 million yuan. The equity penetration chart shows that Bowo Automobile (China) Co., Ltd. is 100% owned by Beijing Baowo Automobile Co., Ltd.

Risk information shows that Baowo Automobile (China) Co., Ltd. has a number of persons subject to enforcement, consumption restriction orders and final capital case information, with a total outstanding amount of more than 400 million yuan. According to Tianyan investigation information, the total amount of legal action of Bao Wo Automobile (China) Co., Ltd. is 74 yuan, the total amount of the case is 35.952102 million yuan, the identity of plaintiff / appellant is 194702 yuan, and the identity of defendant / appellee is 35.7574 million yuan; consumption restriction order is 20; there are 6 final cases, the total amount of execution is 41358491.8 million yuan, the total amount of unfulfilled is 41036756.2 billion yuan, and the proportion of non-performance is 99.2%. The person subject to breach of trust is 1, the total number of non-performance is 1, the proportion of non-performance is 100%; the total amount of historical execution is 26, and the total amount of execution is 2.011064 million yuan.

In fact, it is expected that Bowo China will file for bankruptcy because its parent company, Beijing Baowo Motor Co., Ltd., has previously filed for bankruptcy review. Beijing No. 1 Intermediate people's Court issued a civil order No. 91 (2022) on November 29, 2022, BAIC Foton Motor Co., Ltd. (hereinafter referred to as "Foton Automobile") issued a notice saying that Beijing Baowo Automobile Co., Ltd. went bankrupt. The court held that, based on the results of the confirmation of the claim and the assets of the debtor confirmed by the assessment, Bowo Motor Company was unable to pay off the debts due and the assets were significantly smaller than the liabilities and insufficient to pay off all the debts. So far, no application for restructuring or reconciliation has been submitted. To sum up, Bowo Motor Company already has the legal conditions to declare bankruptcy. At this point, after eight years in China, Bowo, which claims to be on a par with Audi, BMW and Mercedes-Benz, has officially declared bankruptcy.

Beijing Baowo Automobile Co., Ltd. was established in January 2016. its legal representative is Chen Liangyun, with a registered capital of about 665 million yuan. It is jointly owned by Shenzhou Youche (Xiamen) Information Technology Co., Ltd., BAIC Foton Automobile Co., Ltd. At present, Beijing Baowo Automobile Co., Ltd. is also faced with several pieces of information about the person subject to execution and hundreds of pieces of final case information, the cumulative amount of execution is more than 1.83 million yuan, the amount of non-performance is more than 200 million yuan, the total amount of legal action is 653.3628503 million yuan, the identity of the plaintiff / appellant is 1.70896258 million yuan, and the identity of the defendant / appellee is 6.516538877.2 billion yuan.

Looking back on the development of Bowo Automobile, it can be said that "fate" is quite bumpy. Bowo was founded by German engineer Karl Bowo in 1919 and belongs to the German luxury brand. In 1924, Bowo launched the first Bowo Blitzkarren, which quickly filled the gap in the German postal service market by relying on low price. In 1952, Bowo launched the luxury car Hansa 2400, and two years later it quickly listed the high-end car Bowo Isabella, and once became the most popular model in the luxury car market at that time. Since then, Bowo automotive product line has gradually covered cars, sports cars, buses, fire engines, boats, trucks, and even tanks, helicopters and so on.

Bowo Hansa 2400

With these models, Bowo became Germany's third-largest carmaker in the late 1950s, with annual sales of more than 1 million vehicles, ahead of Mercedes-Benz and BMW. But it wasn't long before Bowo suffered a debt crisis because of mismanagement and finally went bankrupt in 1961, with fixed assets bought by BMW and Mercedes-Benz.

It took more than half a century to be acquired by Foton Motor, a Chinese commercial vehicle brand. Futian Motor bought the Bowo brand for 5 million euros in 2014, originally hoping to enter the passenger car market with the help of Bowo's German genes, but the emergence of Bowo cars not only did not help it open the passenger car market, but brought huge losses to Futian Motor.

Beijing Bowo Automobile Co., Ltd. was established on January 18, 2016. in July of the same year, the first SUV model, BX7, went on sale at a price of 16.98-302800 yuan. With the title of "German brother" and "BBBA", Bowo sold about 30, 000 cars that year, which can be said to be a good start for the recovery of the Bowo brand. Since then, Bowo successively launched BX5, BX7 TS, BXi7 and BX6 models, but the sales volume of the products increased but declined. the cumulative sales from 2017 to 2018 were only 44000 and 32900 respectively, while Foton Motor also lost money year after year. From 2016 to 2018, the net losses of Beijing Bowo 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. Years of losses forced Fukuda Motor to list and transfer its stake in Bowo Motor.

In October 2018, Foton transferred 67% of Bowo Motor's shares to Changshengxingye at a price of 3.973 billion yuan, and behind Changshengxingye was Shenzhou Youche, headed by Lu Zhengyao. In March 2019, Shenzhou Youche bought 67% shares of Bowo Automobile from Changsheng Xinye for 4.109 billion yuan. After the completion of the transaction, Shenzhou Youche directly became the largest shareholder of Beijing Bowo, and then Bowo officially entered the Department of China. However, the funds for the acquisition of Bowo Motor have not been paid in full, and as of January 15, 2020, Foton Motor still has about 1.481 billion yuan left over.

The entry of Shenzhou excellent car led to a temporary improvement in Bowo car sales. Bowo sold 54500 cars for the whole year in 2019, but it was not long before Luckin Coffee was exposed of financial fraud. China's listed companies were implicated in a financial crisis for a time. In April 2020, Shenzhou Youche announced that Bowo plans to use fixed assets with an estimated value of about 4 billion yuan to repay 4 billion yuan of debt owed to BAIC Foton. However, affected by the lucky incident, this plan has not yet taken shape, and Shenzhou excellent cars are also delisted from the new third board market a year later.

In March 2021, Bowo was unable to repay its debt due to 600 million yuan. Fukuda Motor passed a deliberation bill and became one of the debtors of Bowo's debt. In October of the same year, Futian announced that Huaxia Bank had collected about 404 million yuan for Beijing Baowo because it was unable to repay Huaxia Bank's loan principal and related interest on time. In December 2021, Foton Motor announced that the assets related to Beijing Baowo had been seized by the Beijing No. 3 Intermediate people's Court, with a book value of 2.209 billion yuan. Foton Motor said that the final payment and interest of 1.417 billion yuan due to Beijing Baowo equity transfer were not 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.

On the sales side, affected by Lucky's counterfeiting incident and no new models launched after China's acquisition of Bowo, a series of decisions directly led Bowo car sales to fall into a cliff-style decline stalemate again. Bowo's annual sales were only 8703 in 2020 and plummeted to 3612 in 2021.

In January 2022, Beijing Baowo was shut down because it was unable to maintain its operation due to the depletion of funds. In April of the same year, it applied for bankruptcy liquidation and submitted the relevant application to the Beijing No. 1 Intermediate people's Court. At this point, Bowo Motor once again ended in the form of "bankruptcy".

With "good is expensive", "expensive is good" and "Baowo is expensive", the popular Bowo car has come to this stage, and Bowo car has been powerless to recover. Time will tell where Bowo car will go in the future.

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