AutoBeta(AutoBeta.net)10/28 Report--

In the face of the continuous downturn of the domestic automobile market, marginal car companies are facing the risk of being reshuffled by the industry. On the evening of October 28th, Zhongtai Automobile released its results for the third quarter of 2019. In the first three quarters, the company achieved an operating income of 5.401 billion yuan and a loss of 760 million yuan, including a loss of 470 million yuan in the third quarter.

Behind the operating loss is a sharp decline in Zhongtai's auto business. According to the latest sales report, Zhongtai Motor sold 9085 units in September, down 27% from January to September with a total of 99600 units, down 45.97% from a year earlier.

Zhongtai Motor is facing a decline in sales and performance at the same time, the negative news exposed this month is really "non-stop, wave after wave." According to the regulations, the semi-annual performance notice should be disclosed in time before July 15, 2019, but it could not be released in time, so it was sent a supervision letter by the Shenzhen Stock Exchange.

On October 8, Ping an Bank's internal risk investigation notice was exposed, Zhongtai Automobile and other four car companies were named, setting off an uproar. Zhongtai Motor also immediately issued a clarification notice, revealing that the formula so far, there is no bankruptcy plan.

On October 14, it was revealed that due to hundreds of millions of yuan owed to the lithium battery supplier Shenzhen Bic Power Battery Co., Ltd., the Bic battery had taken to the court to freeze its assets of more than 40 million yuan. Shenzhen Bic Electric announced that it withdrew the lawsuit after reaching a settlement agreement with Zhongtai Motor, but Zhongtai failed to comply with the agreement and has now filed another lawsuit with a lawsuit amount of 621 million yuan.

On October 23, 61 Junma dealers from Guangdong, Sichuan, Zhejiang and other places came to Zhejiang Zhongtai Automobile sales Co., Ltd. to protect their rights and negotiate on the withdrawal and rebate of Junma. This is the second time since more than 100 Junma dealers gathered Zhongtai Automobile headquarters in August.

Now Zhongtai's Junma Motor has encountered great difficulties in the process of operation, which has been established for less than two years and is almost unsustainable. Zhongtai promised to solve the after-sales problem of Junma.

The fall of Junma also means that it will aggravate the burden of Zhongtai. Zhongtai, which is in urgent need of capital replenishment, has received a number of loans. In August this year, Zhongtai revealed that led by Zheshang Bank, Bank of China, Construction Bank and Yongkang Agricultural Merchants Bank would jointly issue 3 billion yuan in loans to Zhongtai Motor as a rescue fund to resume production in stages. On September 11, Zhongtai Motor disclosed that it applied for a trust loan of 200 million yuan from Shanxi Trust Co., Ltd. In addition, Zhongtai Motor also received 60 million yuan in new energy subsidies from the government.

Even so, at present, the industry is in an environment of intensified reshuffle, and relying solely on subsidies can only be a delaying tactic. There is also great uncertainty as to whether Zhongtai Motor can tide over the difficulties. If it cannot solve the problem of losses, how long can Zhongtai persist?

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat