AutoBeta(AutoBeta.net)08/19 Report--

After falling into the storm of fraud and compensation, the current situation of Wuzhou Dragon is going from bad to worse.

When the media came to Shenzhen Wuzhoulong Automobile Co., Ltd., they found that many workshops had stopped production and there were a number of Wuzhoulong buses neatly placed in the factory. According to people familiar with the matter, the Wuzhou Dragon workshop has been on holiday for some time because there is no business, and now only executives are at work. Another insider also said that he did not start work after coming back for the Spring Festival. In fact, he seldom started work in 2018. All the employees paid basic wages, but later they could not afford to pay wages, and then they simply had a holiday. There were disputes before because of the issue of wages.

Netizens have also revealed on the Internet that the factory of Shenyang Wuzhou Dragon has also been demolished, and Beijing Weikawei Auto parts Co., Ltd., as a shareholder of Wuzhou Dragon, has negotiated with the local government about the proceeds from the sale of land by Shenyang Wuzhou Dragon.

According to Wuzhoulong's official website, in 2009, Wuzhou Dragon has invested heavily in Chongqing, Shenyang, Jieyang and other places to set up new energy vehicles and power battery subsidiaries, whose products cover all the key links of the new energy vehicle industry chain. The report in December 2015 mentioned that in Shenzhen alone, Wuzhou Dragon all kinds of new energy buses have ranked first in the city's market share.

However, the five continents dragons were exposed to be "cheated to make up". According to statistics, from 2009 to 2015, the central government provided a cumulative subsidy of 33.435 billion yuan for the promotion of new energy vehicles, while in September 2016, the Ministry of Finance exposed that five new energy vehicle companies in Shenzhen, including Wuzhoulong, had fraudulently compensated more than 1 billion yuan in state financial subsidies. Among the new energy vehicles declared by Wuzhoulong in Shenzhen, 154 vehicles were not completed by the end of 2015, but the vehicle driving license was issued in advance in 2015, and the central government subsidy of 55.74 million yuan was applied for.

The Ministry of Finance recovered the central financial subsidy earmarked funds obtained by Wuzhoulong illegally licensed vehicles in 2015 and imposed penalties in accordance with relevant regulations. At the same time, the central financial subsidy qualification was disqualified from 2016.

In September 2018, the equipment Industry Development Center of the Ministry of Industry and Information Technology plans to report to the Ministry of Industry and Information Technology the list of enterprises that have stopped producing new energy vehicles for 12 months or more. Chongqing Wuzhou Dragon is also among the 30 car companies. In the same period, the equipment Industry Department of the Ministry of Industry and Information Technology issued a public announcement to withdraw 272 models from the catalogue of new energy vehicles exempted from vehicle purchase tax, including five models of Chongqing Wuzhou Dragon.

With regard to the development of Wuzhou Dragon, Jingwei shares said that the strategy of Wuzhou Dragon is still being adjusted, and the hydrogen energy business is also constantly innovating. In addition, Wuzhou Dragon focuses on the research and development, production and sales of new energy vehicles, and some fuel vehicles were produced and sold in the early stage. at present, fuel vehicles have withdrawn from their target models.

At the end of 2015, Jingwei planned to buy 48 per cent of Wuzhoulong for 552 million yuan, as well as 20 per cent of Changchun New Energy and 35 per cent of Jiangsu Cartway.

However, in the layout of several new energy vehicles, not only no profit, but a substantial loss. In 2018, Wuzhoulong, Changchun New Energy and Jiangsu Cawei lost 369 million yuan, 256 million yuan and 22 million yuan respectively.

In mid-July this year, Jingwei said it would terminate the equity transaction between Wuzhoulong and Jiangsu Cawei because the continuous losses of the integrated project during the construction period may lead to potential delisting risk. At the same time, due to the termination of the aforementioned equity exchange, the company terminated the transfer of its 35% stake in Changchun New Energy to Jiangsu Cawei.

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