On the evening of April 22, Beiqi Foton Motor Co.Ltd(600166) announced that after receiving the written notice sent by Beijing baowo Automobile Co., Ltd., Beijing baowo was accepted by the court for bankruptcy liquidation on April 22, 2022.
Baowo automobile is a century old German automobile brand. It was acquired by BAIC Foton in 2014 to enter the passenger car market. Later, due to the poor response of the product market, it changed hands to Shenzhou excellent car of Lu Zhengyao in 2019. After several changes of ownership, Beijing baowo finally went bankrupt due to high debt.
baowo bankruptcy application accepted
On April 8, Beijing baowo applied to the court for bankruptcy liquidation on the grounds that the company could not pay off its due debts and its assets were insufficient to pay off all its debtsP align = "center" source: baowo auto official website
The court held that Beijing baowo is a qualified subject of bankruptcy and has the reasons for bankruptcy. Therefore, the court should accept the application for bankruptcy liquidation of Beijing baowo.
On December 9, 2021, due to the inability to repay the debts of creditors such as suppliers, relevant creditors applied to seal up the relevant assets of Beijing baowo, involving an amount of about 123565 million yuan. The book value of the seized assets is 2.209 billion yuan, including machinery and equipment, transportation equipment, office equipment, it equipment, tooling and molds, other equipment, construction in progress, inventory, etc.
It is reported that the seized assets are necessary for the production and operation of Beijing baowo. The seizure has a significant impact on Beijing baowo and has an adverse impact on the recovery of relevant creditor's rights.
Data show that Beijing baowo Automobile Co., Ltd. is jointly owned by Shenzhou Youche and BAIC Futian, with shareholding ratios of 75.2% and 24.8% respectively.
Beiqi Foton Motor Co.Ltd(600166) said that the bankruptcy liquidation of Beijing baowo will not affect the company's existing main business and will not have a significant impact on the company's continuous operation. Based on the principle of prudence, the company will make large impairment provisions for Beijing baowo's borrowings, current arrears, guarantees and the recovery of Beijing baowo's equity held by the company. The above impairment is expected to affect the total profit of about - 4.704 billion yuan in 2021. In addition, considering the recognition of investment income due to the company's equity of Beijing baowo, it is expected to affect the total profit of about - 5.326 billion yuan in 2021.
As of press time, Shenzhou Youche has not responded to this matter.
Futian failed to transform by baowo
Baowo automobile is a century old automobile manufacturer from Germany. In 1919, German engineer Carl boward founded boward automobile brand, which is positioned as a luxury automobile brand. It was once as famous as Mercedes Benz and BMW and is the third largest automobile manufacturer in Germany. Later, due to the decline of automobile product power, poor management and other factors, baowo automobile declared bankruptcy in 1961.
In 2014, Beiqi Foton Motor Co.Ltd(600166) got the idea of entering the field of passenger cars, and spent 5 million euros to acquire baowo automobile brand. In 2015, Beijing baowo Automobile Co., Ltd. was established and the first SUV model bx7 was launched.
It is worth noting that Beiqi Foton Motor Co.Ltd(600166) at the time of acquiring baowo automobile, the automobile enterprise has been silent for more than half a century, and the technical design has long been out of touch with the times. This has also led to a decline in the quality and market reputation of Beijing baowo Beiqi Foton Motor Co.Ltd(600166) financial report shows that from 2016 to 2018, the accumulated loss of Beijing baowo reached 4.014 billion yuan.
In 2018, Beiqi Foton Motor Co.Ltd(600166) issued an announcement on the pre listing transfer of 67% equity of Beijing baowo Automobile Co., Ltd., and pointed out that the transfer of equity is conducive to the introduction of diversified capital investment and the long-term sustainable development of Beijing baowo. At the same time, it is conducive for the company to focus on the core business of commercial vehicles, continue to consolidate Beiqi Foton Motor Co.Ltd(600166) its advantages in the field of commercial vehicles, promote the technological innovation of commercial vehicle business and further enhance its market position.
Beiqi Foton Motor Co.Ltd(600166) also said that after the completion of this listing transaction, the company will hold 33% equity of Beijing baowo and will no longer include it in the scope of the company's consolidated statements, which will have a certain impact on Beiqi Foton Motor Co.Ltd(600166) 's profits.
Shenzhou collapse belt bengbaowo
In 2019, baowo automobile welcomed another investor, Lu Zhengyao's Shenzhou excellent car. On March 18, 2019, Shenzhou Youche announced that Shenzhou Youche spent 4.109 billion yuan to acquire 67% equity of baowo automobile.
The emergence of Shenzhou excellent car has brought opportunities to revitalize Beijing baowo. At that time, Lu Zhengyao was building a Shenzhou auto ecosystem: Shenzhou special cars provided travel services for users; The vehicles rented by China can be used for rental and can also be rented to special vehicles in China; Buying a car in China solves the disposal of second-hand cars rented in China; Shenzhou auto flash loan provides financial loan services for car buyers. The acquisition of baowo automobile has provided upstream vehicle supply for Shenzhou automobile system and completed the industrial closed loop.
Benefiting from the purchase order of Shenzhou department, the sales volume of Beijing baowo increased to 54500 vehicles in 2019. However, it did not last long. With the explosion of Ruixing coffee under Lu Zhengyao and the delisting of Shenzhou car rental privatization, the "blood transfusion road" of Beijing baowo was interrupted, and the sales volume fell to 8740 in 2020, a sharp drop of 84%.
The collapse of the Shenzhou system also plunged Beijing baowo into debt and finally declared bankruptcy. In January 2021, Beiqi Foton Motor Co.Ltd(600166) announced that the company had not received the balance of Beijing baowo equity transfer at the expiration of the period. On September 28, 2020, Beiqi Foton Motor Co.Ltd(600166) signed the tripartite agreement on the payment of the remaining transfer price with Changsheng Xingye and Shenzhou Youche (Xiamen) Information Technology Co., Ltd., which agreed that Shenzhou Youche (Xiamen) would join the debt commitment of the remaining transfer price of the equity transaction as the debtor, bear the debt together with Changsheng Xingye, and pay all the accounts payable owed to Changsheng Xingye totaling 1.3591 billion yuan directly to the company before December 31, 2020.
Beiqi Foton Motor Co.Ltd(600166) in the announcement, it is pointed out that Shenzhou Youche faces the risk of delisting, which affects the guarantee ability of relevant guarantors for the balance payment of Beijing baowo equity transfer.
