Less than three months after the reorganization plan was approved by the court, Zotye Automobile Co.Ltd(000980) came out that Linyi production base, one of its nine production bases, had been acquired by Great Wall Motor Company Limited(601633) .
“The rumored Great Wall Motor Company Limited(601633) acquisition of Zhongtai Linyi production base is not the company’s assets, but the company’s branch established in Linyi is leased, which has no relationship with the listed company.” Recently, the relevant person in charge of Zhongtai automobile said in an interview with the reporter of daily economic news that the company has not signed any strategic agreement with Great Wall Motor Company Limited(601633) .
The nine production bases announced by Zhongtai automobile are located in Yongkang, Hangzhou, Changsha, Daye, Chongqing, Jinhua, Linyi, Xiangyang and Guigang. “The company’s production bases are not all owned by the company, but also used by leasing through its subordinate branches.” The above-mentioned person in charge of Zhongtai automobile disclosed to reporters that except that the four production bases in Hangzhou, Yongkang, Changsha and Xiangtan are owned by Zhongtai automobile, the other five production bases, including Linyi, are leased.
In the face of external rumors, Great Wall Motor Company Limited(601633) the relevant person in charge also gave a “denial” response in an interview with reporters. “The company has no plan to acquire Zhongtai’s production base.” The Great Wall Motor Company Limited(601633) relevant person in charge told reporters that the company will continue to focus on self built factories in the future.
all bases of Zhongtai are shut down
Since the beginning of 2019, Zhongtai automobile and its subsidiaries in the whole vehicle sector have gradually fallen into business crisis and financial crisis, which is becoming more and more serious.
From October 2020 to June 2021, 8 subsidiaries of Zhongtai automobile were successively accepted by the court for bankruptcy due to falling into debt crisis. On June 9, 2021, because Zhongtai automobile could not pay off its due debts and had the possibility of obvious loss of solvency, Jinhua intermediate people’s court ruled to accept the reorganization according to law according to the application of creditors, and appointed the manager to carry out various work of reorganization.
Until December 1, 2021, Zhongtai automobile was ruled by Jinhua intermediate people’s court to approve the reorganization plan and terminate the reorganization procedure. The restructuring investor is Jiangsu Shenshang Holding Group Co., Ltd. (hereinafter referred to as Jiangsu Shenshang), and the restructuring investment is 2 billion yuan.
After Zhongtai automobile was taken over by Jiangsu Shenshang, it immediately released the company’s new operation plan for restructuring, made it clear that the company should resume and optimize the traditional automobile business, layout the online car hailing and micro electric vehicle market, and proposed that the company would layout the medium and high-end new energy vehicle brand.
Up to now, Jiangsu Shenshang has received Zhongtai automobile for more than two months. “Before the lunar new year, the company signed a three-year renewal contract with all the old employees of Zhongtai. However, the current state of Zhongtai’s internal employees has not changed significantly from that before the reorganization.” An internal staff member of Zhongtai automobile told reporters that there is no exact time point when the factory can resume work.
“The company has just been reorganized successfully, and some businesses have not been carried out yet.” In an interview with reporters, the Board Secretary of Zhongtai automobile explained that the company was already making preliminary preparations for the resumption of work and production. As for when to resume work and production, it is impossible to accurately predict.
It is worth mentioning that, as a listed company, Zhongtai automobile has shut down all its major production bases due to lack of funds, and the company’s operation is in a state of loss for consecutive years. To this end, Zhongtai automobile continued to be “delisting risk warning” implemented by Shenzhen Stock Exchange. “If the company’s financial report of 2021 issued by Zhongtai automobile in 2022 still shows that the net assets at the end of the period are negative, the company will be delisted.” In October 2021, the internal staff of Zhongtai automobile said in an interview with reporters.
However, the relevant person in charge of Zhongtai automobile told reporters that up to now, the performance forecast of 2021 calculated internally by the company shows that the net assets are positive. Meanwhile, if the audited report of the company in 2021 issued by the accounting firm shows that the net assets at the end of the period are positive, “delisting risk warning” will be cancelled.
there is no result of taking over Linyi base
For the ownership of its nine production bases, the relevant person in charge of Zhongtai automobile told reporters that the branches set up by the company in the nine production bases are subordinate to listed companies, but the assets of the branches are not all self-sustaining. The ownership of Linyi production base, which is rumored to be acquired by Great Wall Motor Company Limited(601633) , belongs to Linyi Zhongtai Auto Parts Manufacturing Co., Ltd. (hereinafter referred to as Linyi parts company).
On February 18, the clarification announcement issued by Zhongtai automobile also showed that the plants, parking lots and office space used by its two branches in Linyi – Hunan Jiangnan Automobile Manufacturing Co., Ltd. Linyi Branch and Linyi zhuotai Automobile Sales Co., Ltd. were leased from Linyi parts company.
Zhongtai automobile said that up to now, some lease agreements between its two branches and Linyi parts company have expired. “Because the two companies under the company have stopped production and shut down for a long time, and basically have no production and business activities, the two companies have not renewed their leases.” Zhongtai automobile said that the subsequent disposal of the assets of the two companies has not been determined.
According to the data of qixinbao, Linyi parts company was established in December 2013, and Bao Hongbin, the legal representative, is the largest shareholder of the company, with a shareholding ratio of more than 73%. Direct or indirect shareholding of 5% or more includes Linyi Finance Investment Group Co., Ltd. (wholly state-owned), Linyi new and old kinetic energy conversion Fund Investment Co., Ltd. and Linyi Finance Bureau. In addition to the development, manufacturing and sales of auto parts and accessories, the business scope of the company also includes the leasing of movable and real estate.
Public information shows that Linyi parts company also fell into the crisis of bankruptcy and reorganization in 2020. “The bankruptcy and reorganization of Linyi parts company has nothing to do with Zhongtai automobile.” In an interview with reporters, the reorganization manager of Linyi parts company said that the implementation of the Great Wall Motor Company Limited(601633) Linyi project was led by Linyi Municipal government, and the company was not directly involved.
The reporter learned from the national enterprise bankruptcy and reorganization case information network that on September 2, 2020, the people’s Court of Linyi Economic and Technological Development Zone of Shandong Province ruled to accept the bankruptcy and reorganization application of Linyi parts company and Linyi Zhongtai Automobile Mould Technology Co., Ltd., and on October 10 of the same year, it ruled that Linyi Zhongtai Automobile Service Co., Ltd., Linyi zhuotai automobile parts manufacturing Co., Ltd Linyi Zhongtai Industrial Co., Ltd. and Linyi Zhongtai Hotel Co., Ltd. were included in the bankruptcy reorganization case of Linyi parts company for substantive merger and reorganization.
“As Great Wall Motor Company Limited(601633) only wants to take over the net assets of the company’s Linyi production base and doesn’t want to bear some company debts, so far, there is no final result on how Great Wall Motor Company Limited(601633) will take over and how to deal with the equipment and production line in the plant.” “At present, the relevant due diligence has been completed, and it is not clear how to go next,” the reorganization manager of Linyi parts company told reporters
Great Wall Linyi Branch starts recruiting
On November 28 last year, Great Wall Motor Company Limited(601633) officially signed a contract with Linyi Municipal Government on the project of Linyi vehicle and parts production base.
The project includes a production base with an annual output of 120000 complete vehicles and a production base of key parts such as engines and chassis.
Subsequently, Great Wall Motor Company Limited(601633) established its branch in Linyi. According to the data of qixinbao, Great Wall Motor Company Limited(601633) Linyi Branch (hereinafter referred to as Great Wall Motor Company Limited(601633) Linyi Branch) was officially established on December 22, 2021. ” Great Wall Motor Company Limited(601633) Linyi Branch will build a comprehensive base focusing on complete vehicles and serving key parts and related industries.” Linyi Economic and Technological Development Zone said that after the base is completed and put into operation, it is expected to achieve an annual output value of 20 billion yuan, and drive more than 10 supporting enterprises in the automobile industry to settle in.
It is worth mentioning that the recruitment of Great Wall Motor Company Limited(601633) Linyi Branch began at the end of 2021, and the office of the recruited employees is located in the former Zhongtai Linyi production base. “The employees recruited this time are mainly engaged in vehicle production. However, because the company wants to upgrade the original factory, even if they apply now, they will be arranged to practice in other factories in Great Wall Motor Company Limited(601633) for 3 ~ 6 months.” The relevant person in charge of Linyi Branch told reporters.
2021 was a year of Great Wall Motor Company Limited(601633) rapid expansion of production capacity. In addition to the former Zhongtai Linyi production base, it also successively acquired hanteng automobile phase II plant in Shangrao, Jiangxi Province and Hanlong automobile plant in Daye, Hubei Province. “The company has planned many new models and set the goal of annual sales of 4 million vehicles worldwide by 2025. However, Great Wall Motor Company Limited(601633) the existing plant capacity can not meet the future development goal.” The relevant person in charge of Great Wall Motor Company Limited(601633) group said that the idle capacity of car enterprises with difficult operation is the company’s further expansion of the existing capacity.
According to the “2025 strategy” released by Great Wall Motor Company Limited(601633) in June 2021, in 2025, Great Wall Motor Company Limited(601633) will achieve the goal of global annual sales of 4 million vehicles and operating revenue of more than 600 billion yuan. Among them, 80% will be new energy vehicles, and the R & D investment in the next five years will reach 100 billion yuan.
After successfully settled in Linyi this time, Great Wall Motor Company Limited(601633) has formed twelve production bases in China, which are located in Baoding, Hebei, Xushui, Tianjin, Rizhao, Shandong, Taizhou, Jiangsu, Zhangjiagang, Jiangsu, Pinghu, Zhejiang, Yongchuan, Chongqing, Jingmen, Hubei, Daye, Jiangxi, Shangrao, and Linyi, Shandong.
Official data show that in 2021, Great Wall Motor Company Limited(601633) new cars sold about 1281000, breaking one million for six consecutive years. According to the available data, Great Wall Motor Company Limited(601633) the total production capacity of the national production base exceeds 2.5 million vehicles, which is enough to cover the current production capacity demand, but there is still a big gap from the global sales target of 4 million vehicles.
From the production base mode of cheetah, hanteng and Hanlong, Great Wall Motor Company Limited(601633) is to buy plants and production equipment and does not bear the debt liability of enterprises facing bankruptcy. ” Great Wall Motor Company Limited(601633) get the production base, factory and plant production equipment at a price far lower than the market price, which can quickly meet its capacity expansion needs.” Cui Dongshu, Secretary General of the national passenger car market information joint committee, said.
However, although the cost advantage of this “second-hand” factory is obvious, the relevant person in charge of Great Wall Motor Company Limited(601633) said: “in the future, Great Wall Motor Company Limited(601633) will give priority to self built production bases according to the policy requirements given by the local government. Because the acquired ones are not necessarily more suitable than the self built ones.”
