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In the face of performance losses, Jinbei Automobile, like many auto companies, sold its assets in order to protect itself. A few days ago, Jinbei Automobile issued two asset transfer announcements one after another, intending to transfer 100% equity of brilliance Automobile Golden Cup (Xixian New area) Industrial Park Co., Ltd. and Shenyang Jinbei Housing Development Co., Ltd. to Shenyang Automotive Industry Asset Management Co., Ltd., with a transaction consideration of 59.8793 million yuan and 1 yuan respectively. At present, both subsidiaries are in debt loss.

According to the announcement, Xixian Industrial Park was established in 2015 and is a wholly owned subsidiary of the company. On the base date of asset evaluation on September 30, 2018, Xixian Industrial Park had total assets of 152 million yuan, total liabilities of 117 million yuan and net assets of 35.0727 million yuan. In the first three quarters of 2018, the operating income was 2.5714 million yuan and the net profit was-5.3655 million yuan.

The other, Jinbei House, was founded in 1995 and is a wholly owned subsidiary of the company. By the end of 2018, Jinbei housing assets totaled 22.3854 million yuan, liabilities totaled 23.9425 million yuan, and net assets-1.5571 million yuan. In 2018, the operating income is 0 yuan and the net profit is-138300 yuan.

For the two transfers, Jinbei Automobile said that due to the slight loss of net profit in Xixian Industrial Park in recent years, and Jinbei House has not carried out real estate development business in the past five years. In this regard, we hope to focus on the main business and improve operational efficiency, and the company intends to transfer its equity.

According to the first quarter 2019 report released by Jinbei Automobile, the company achieved revenue of about 1.459 billion yuan during the reporting period, an increase of 6.36% over the same period last year. Net profit belonging to shareholders of listed companies was about 19.0348 million yuan, down 6% from the same period last year. The decline does not seem to be very great.

As a matter of fact, Jinbei Automobile, one of the four listed companies of brilliance Group, has been on the ST list twice and has been struggling on how to "reverse losses" for many years. Since 2001, Jinbei Motor has suffered a huge loss, with a net profit of-980 million yuan belonging to listed companies, and has been in a state of loss in the seven years from then to 2018.

In March 2010, Jinbei Motor decided to divest the continuously lossmaking China Motor from the market and divest the whole vehicle business. Although the debt situation of Jinbei Automobile has been improved, it has not fundamentally solved the company's development dilemma.

Because there is no car business Jinbei car, gradually by the edge of the capital market, coupled with the long-term lack of new products. Let the Golden Cup car, which is already "heavily in debt", will undoubtedly cast another shadow over the troubled future.

As the vehicle sector continues to decline, the share of business in this sector is also getting smaller and smaller. In 2016, the production of spare parts and materials accounted for 73% of Jinbei Automobile's revenue. In 2017, Jinbei Automobile sold its entire vehicle business and earned 371 million yuan from the sale of assets, which reversed losses in one fell swoop. In 2017, the business income of Jinbei auto parts business reached 4.787 billion yuan, an increase of 39.54% over the same period last year, and that of parts business in 2018 was 5.391 billion yuan, an increase of 21.82% over the same period last year.

Although, Jinbei auto parts products are currently the main customers of brilliance BMW and brilliance China such affiliated enterprises. In the outside world, Jinbei Automobile relying on brilliance Group can achieve a relatively stable transaction, but there is also a high performance-dependent risk.

According to data from brilliance China in the first half of 2019, cumulative sales were only 15000, down 70% from the same period last year, which is also one of Jinbei's main customers.

It is true that the transfer of shares in subsidiaries of Jinbei Automobile can alleviate some financial pressure, but it is still difficult to get out of the predicament for Jinbei Automobile, which has lost money for years in the future.

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