AutoBeta(AutoBeta.net)10/09 Report--

Today, the net exposed an internal email from a joint-stock bank asking for an internal risk investigation on the upstream and downstream industrial chains of four car companies, as the media reported that Cheetah, Zhongtai, Huatai and Lifan would enter bankruptcy proceedings by the end of the year.

The joint-stock bank made it clear in the notice that "according to media reports, Cheetah, Zhongtai, Huatai and Lifan will enter bankruptcy proceedings at the end of the year, and it is expected that the industrial chain of upstream and downstream auto parts suppliers will have a total of about 50 billion yuan of bad debts."

Affected by this, banks require that the stock of customers involved in the above four car companies upstream and downstream industrial chain, should be a detailed understanding of their affected situation, and according to the affected degree to formulate a risk mitigation plan in time.

Some media have learned deeply that this risk investigation is not only carried out by a branch, but also needs to report the investigation to the headquarters in the follow-up.

Although the news that the four independent car companies were reported to have gone bankrupt has not been confirmed, their operating conditions have been very difficult and are in crisis.

Cheetah car sales decline, earlier was exposed that employees cut wages, stop work and production, the court seized bank deposits. According to an internal meeting minute document issued on May 29, Changfeng Group decided to implement "employee salary adjustment and burden reduction", which said that in view of the rapid changes in the automobile industry, the company suffered serious production and operating losses, and the production base was seriously understaffed. The meeting ensured survival and tide over the difficulties by means of salary adjustment, burden reduction and salary reduction.

The salary adjustment includes the salary reduction of 50% for some senior executives in the headquarters, 10% for the staff of the research institute, and 30% for the staff of the production base. For those who have no work arrangement to wait for work or rest in rotation, the wages are calculated in accordance with the minimum wage standard of the base area this year.

The document has been confirmed by Cheetah officials that as a 70-year-old company, Cheetah is also in trouble and has entered a difficult time of stopping production and production.

Cheetah sold just 77600 vehicles in 2018, nearly halving from a year earlier, with cumulative sales falling to 28000 in the first half of 2019.

After Huatai Motor was revealed to have stopped production and owed wages this year, it was reported that after a court conducted an asset investigation into Huatai Automobile, it was found that all its subsidiaries had been pledged and its shares in listed companies had been frozen. All bank deposits under Huatai Automobile Group add up to only 132239 yuan, and there is no other property available for enforcement. Huatai Automobile and several subsidiaries are listed as untrustworthy executors.

In fact, Huatai Automobile has been exposed various problems many times, its four production bases have basically stopped production, employees' wages in arrears have been collectively visited by employees to protect their rights, and most 4S stores have chosen to close, leaving the enterprise desolate.

Lifan car in the second half of the year is also basically in a state of semi-stop production, passenger car monthly production of only a few hundred, production and sales are plummeting compared with the same period last year. Lifan has gone through 27 years since its inception, has been involved in automobile manufacturing for 13 years, and is now facing a huge crisis.

Lifan encountered dealers' collective rights protection in the middle of the year, and recently encountered a large number of lawsuits, with many auto parts suppliers and financial companies suing Lifan for huge sums of money. The cumulative amount of litigation (arbitration) involved in Lifan shares has reached 1.423 billion yuan in the past 12 months, according to an announcement issued by Lifan shares on July 26. litigation cases mainly include financial loan contracts, factoring contracts, financial leasing contracts and other disputes.

In addition to debts, Lifan also used the raised funds a total of 449 million yuan in July 2018, December 2018 and April 2019 to temporarily replenish the working capital, which has not yet been repaid when it is due.

Lifan made a profit by selling assets in 2018 and lost 100 million yuan in the first quarter of 2019.

Zhongtai Motor is also in trouble, and incidents of safeguarding rights at headquarters occur frequently. There are media reports, Zhongtai Automobile's main business almost stagnant, every quarter there are hundreds of millions of yuan of loans due within a year. Zhongtai's Junma car can no longer be carried, and the factory has stopped production. In August this year, more than 100 Junma car dealers gathered at Zhongtai Automobile headquarters in Yongkang, Zhejiang to safeguard their rights.

Zhongtai Automobile has too many subsidiaries, and there are problems with the operation of the subsidiaries, which also have a negative impact on Zhongtai. Zhongtai Motor sold a total of 124400 vehicles in the first eight months, down 32.3% from the same period last year. Zhongtai Motor is said to have used various ways to finance blood transfusions and recently signed a trust loan agreement with Shanxi Trust with a total amount of no more than 200 million yuan.

Affected by the downturn of the automobile industry, automobile enterprises are also facing reshuffle, the brand car enterprises in the third and fourth line are difficult to sustain, the living space is constantly squeezed, facing the risk of bankruptcy. Tan Benhong, executive vice president of Changan Automobile, said earlier, "China's automobile industry has entered a comprehensive phase of elimination. The stronger the strong, the greater the pressure on the weak." The survival of the fittest is more obvious. 50% of Chinese car brands, I think, will cease to exist for some time soon.

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