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After Guanghui Automobile was exposed that it was on the verge of delisting, it was reported that it was in deep trouble, arrears of employees' wages, store closure and so on.

Recently, according to Phoenix New Media, a number of Guanghui employees revealed to him that Guanghui Motor was in arrears of wages. Some relevant shop employees said that at present, most of Guanghui Motor's wages are in arrears after two months, such as April wages in June, May wages in July, and so on. Wages vary from brand to brand, depending on performance and salary package of the store. In addition, Guanghui employees revealed that the wages of their stores were also discounted, with a 54% discount for the whole staff and a 7% discount for the first wholesale salary. The automobile industry is concerned, and many netizens have commented on social platforms that Guanghui Motor is in arrears of wages.

In addition to being exposed that there is a problem of wage arrears, Guanghui Automobile has also been reported, and car owners have also encountered a lot of trouble in picking up the car. Many car owners said that they had paid for the car but could not pick up the car, and the car owner was mortgaged by Guanghui Automobile to financial institutions because of the certificate, and there was no way to go through the licensing process normally. Many investors even disclosed to the media that they had accumulated losses of 4.3 million yuan for many years when they bought Guanghui cars. Now Guanghui Motor closed at less than 1 yuan per share for several consecutive trading days, so many investors can only choose to cut their positions at a low level. It is understood that after nine years of listing, Guanghui Motor's share price has fallen by more than 95%, and its market value has shrunk by more than 127 billion yuan. As a comparison, the share price of Guanghui Automobile was as high as 32.12 yuan per share when it was listed.

Data show that Guanghui Motor belongs to Guanghui Group and is headquartered in Urumqi, Xinjiang. Guanghui Group is one of the largest automobile dealers in China, and its business covers the national automobile distribution network of 28 provinces, autonomous regions and municipalities directly under the Central Government. By the end of last year, it operated a total of 735 outlets, including 695 4S stores. In addition to Guanghui Automobile, its founder Sun Guanxin also owns Guanghui Energy, Guanghui Logistics, Guanghui Baoxin and Alloy Investment other four listed companies. In 2002, Sun Guangxin continuously carried out "mergers and acquisitions" in Xinjiang, Guangxi, Henan and other places, forming a huge automobile distribution network. In the next few years, Guanghui Motor has completed the acquisition of many car distribution companies one after another. In 2012, Guanghui Automobile became the leading car dealer in China. Guanghui Motor went public through backdoor Mero Pharmaceutical in 2015.

However, the good times did not last long. In 2018, the third year after listing, Guanghui Motor's net profit began to decline gradually. Data show that from 2018 to 2020, Guanghui Automobile made a net profit of 3.257 billion yuan, 2.601 billion yuan and 1.516 billion yuan, with net profit growth rates of-16.27%,-20.16% and-41.72%, respectively. For the first time in 2022, the net profit loss was 2.669 billion yuan, down 265.92% from the same period last year. In 2023, Guanghui Automobile turned from loss to profit, with annual revenue of 137.998 billion yuan, but net profit of only 392 million yuan. After entering 2024, under the influence of the price war, the performance of GAC also suffered a great blow. Data show that business in the first quarter was 27.79 billion yuan, down 11.49% from the same period last year, while net profit was 70.9405 million yuan, down 86.61% from the same period last year.

In the case of unsatisfactory performance, Guanghui Motor has also streamlined its personnel and stores. According to its annual report last year, the number of employees of Guanghui Automobile decreased by nearly 7000 compared with the previous year, and the total number of employees of Guanghui Automobile was 35750 in 2023. At the same time, Guanghui Motor also closed 50 stores with less profitability last year.

Of course, Guanghui Motor can reduce some of its expenses by making these measures, but it still can not get rid of the plight of falling gross profit. In addition, Guanghui Automobile has to face not only the shortage of funds at this stage, but also the risk of delisting.

At present, with the rise of new domestic car-building forces, the market share of fuel vehicles is also constantly being swallowed up. The main sales of Guanghui cars are mainly sales of luxury traditional fuel vehicles, which has naturally suffered a big blow. In addition, with the start of the price war, many car companies have to join the price war, so that the profits of cars are also squeezed, especially the traditional luxury brand fuel vehicles are affected more obviously. In fact, the plight of Guanghui Automobile is a microcosm of the current situation of the entire car dealership industry. With the rapid development of new energy vehicles, traditional car dealers will also be reshuffled.

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