AutoBeta(AutoBeta.net)06/21 Report--

On the evening of June 20, Giant Automobile Trade Group Co., Ltd. announced that on June 20, 2019, the board of directors of Jumbo Group received the resignation of Mr. Pang Qinghua, chairman of the board of directors strategy committee and general manager. Mr. Pang Qinghua resigned as chairman, chairman and general manager of the board of directors strategy committee for personal reasons. According to the articles of association, Mr. Wang Yusheng was elected to perform the post of chairman.

What will be the impact of Pang Qinghua's resignation on the huge group? The giant group said in the announcement that Pang Qinghua's resignation will not cause the number of the board of directors to fall below the quorum and will not affect the normal operation of the board of directors. As to whether Pang Qinghua will not hold any position in the huge group after his resignation.

The large group filed for bankruptcy restructuring on May 17 this year. On May 21, the Shanghai Stock Exchange announced a written decision on disciplinary action against the giant group and its related responsible persons: the timely appointment of the chairman, controlling shareholder and actual controller of the giant group, Pang Qinghua, the then director and deputy general manager, Wu Cheng, was publicly condemned; it was publicly determined that the then chairman, Pang Qinghua, was not suitable to serve as a director, supervisor and senior manager of a listed company within three years. Liu Zhongying, the then secretary of the board of directors, was criticized in a circular.

As the founder and actual controller of the huge group, Pang Qinghua has been working in the group since its inception. In 2010, the giant group sold 470000 cars of various types, with a sales income of 53.8 billion yuan and a profit of 1.24 billion yuan, and the sales of 20 car brands ranked first in the same industry in the country. In April 2011, the giant group was officially listed on the Shanghai Stock Exchange.

Unlike the glory of many years ago, today's huge groups have fallen into operational crisis. In 2018, the revenue of the giant group was 42.034 billion yuan, down 40.37% from the same period last year, of which the income from automobile sales was 34.773 billion yuan, down 43.25% from the same period last year. The net profit belonging to shareholders of listed companies lost 6.155 billion yuan, down 3003.23% from profit to loss for the first time. In terms of sales, the giant group sold 251900 vehicles in 2018, down 229800 from the same period last year.

In May 2019, the creditor Ji Dongfeng Company applied to the court for reorganization of the large group on the grounds that the company was unable to pay off its due debts and that it was obviously insolvent. The large group issued a notice showing that if the court decides to accept the reorganization application, the large group will be at risk of being declared bankrupt because of the failure of the reorganization. If a large group is declared bankrupt, the company's shares will be terminated.

Pang Qinghua said: "huge is indeed in bankruptcy restructuring." According to Pang Qinghua, the bankruptcy restructuring was initiated by creditors, not by a large group of companies.

Industry insiders said that for large groups, although bankruptcy restructuring is not the same as bankruptcy, it is also the last opportunity for large groups to restructure their assets. If large groups can restructure and repay their debts within a limited time, they will have a chance, but if the restructuring fails, they will still be unable to avoid being eliminated by the market.

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