Baowo's bankruptcy behind Futian lost 5 billion yuan

Recently, according to the China Referee Book Network, BAIC Foton Motor Co., Ltd. (hereinafter referred to as "BAIC Futian") applied for frozen 1.4 billion assets such as Lu Zhengyao. The court reviewed that the application complied with the law and ruled it.

The referee shows that the applicant Beiqi Foton Motor Co., Ltd. applied for property preservation to the Beijing Arbitration Commission, requesting, seized, seized, or frozen the applicant Missionexcellencelimited, Goldenareslimited, Fujian Pingtan Free Trade Zone Jun Tong and Investment Partnership (limited partnership), HAODELIMITED Li Mou, Fujian Pingtan Free Trade Zone Chongde Investment Partnership (Limited Partnership), Lu Zhengyao, You Sheng's Chengyi (Tianjin) Enterprise Marketing Planning Partnership (Limited Partnership), and Wang Moumou worth more than 1.4 billion yuan. The court reviewed that the application complied with the law and ruled it. Among them, the property of the respondent MissionExcellencelimited, GoldenaresLimited, Haodelimited, and Li's property are limited to the shares of the Shenzhou Youxa Co., Ltd.

The frozen implementation of the property worth over 1.4 billion yuan may reduce the loss of loss by BAIC Futian for investing in Baowo Automobile.

Baowo Automobile was born in 1919. Once, with its superior product performance and luxury attributes, it became the third largest manufacturer in Germany, second only to Mercedes -Benz and BMW, accounting for more than 60%of Germany's exports. However, due to the decline in product power and poor operation, Bao Wo announced bankruptcy in 1961.

In 2014, BAIC Futian, who was missing in the passenger car market, saw Baowo, so Baowo was acquired and resurrected by BAIC Foton Motor at a price of 5 million euros. He hoped to use Baowo to try to expand the original business. BAIC Futian hopes to continue the image of the German luxury car in the minds of consumers. New pattern of luxury car market: BBBA (Mercedes -Benz, BMW, Baowo, Audi) and other slogans.

In 2016, the resurrected Baowo launched the first SUV Baowo BX7, selling more than 20,000 units in less than a year, and the following year, the Baowo BX7 was launched, with an annual sales of 43,000 units. However, Bao Wo gradually became tired, fell to 27,000 units again in 2018, and the cumulative loss of 4.014 billion yuan in three years. In May 2018, Foton Motor released the "Three -Year Action Plan", deciding to abandon the loss of the passenger car business and focus on the owner of the commercial car.

BAIC Futian decided to stop the loss in time. Baowo's 67%equity was transferred to Changsheng Xingye by BAIC Futian with 3.97 billion. Behind Changshengxingye was the Shenzhou UFO founded by Lu Zhengyao. According to the regulations, Changshengxingye needs to repay 4.271 billion yuan in shareholder loans that owed Futian Motors within three years from the date of the completion of the equity transfer.

Since then, Baowo Automobile and Shenzhou Youxian jointly announced that the two sides have concluded a comprehensive strategic cooperation relationship. Soon after, Ruixing Company's thunderstorms and Shenzhou UFI VII were delisted. For a time, the stock price of Shenzhou was a hit, which caused the largest shareholder behind Baowo to be hit.

On the other hand, the addition of Shenzhou's additional fatigue, Baowo has not launched a new model since then, and has been "eating old books." In 2019, Baowo completed 55,000 annual sales results. However, behind these data is the "self -sufficient" of the car rental business within the Shenzhou, and the 55,000 scores are also false and prosperous. In 2020, Baowo's annual sales were 8,740, less than 20%in 2019, which confirmed that 55,000 Chinese ginseng had mixed a lot of water. Until the bankruptcy, the average monthly sales of this year were only more than 100.

As early as December 2021, Foton Motor announced that because Beijing Baowo did not repay the loan from the company, in order to protect the company's legitimate rights and interests, the company applied for arbitration and preservation. Futian Motor said in March this year that the Beijing Arbitration Commission decided to accept the arbitration application submitted by Foton Motors, and Lu Zhengyao was one of the applicants.

Subsequently, due to the exhaustion of funds, it was impossible to maintain operations, and Beijing Baowo had entered a stopping state. On April 8th, Beijing Baowo held an interim shareholders meeting to decide to apply for bankruptcy and liquidation in accordance with the law.

Baowo's loss and failure also caused a lot of losses to BAIC Futian. In January 2021, BAIC Futian issued an announcement that as of the end of 2020, the company had 671 million yuan (including interest) Baowo Automobile's equity transfer of the equity of Baowo Auto was not received. Since then, BAIC Futian has continuously sued Baowo, Shenzhou Youcou, and Changsheng Xingye, and has repeatedly applied for a property that seizes, seized or frozen Shenzhou UFIDA values ​​of nearly 2 billion yuan. You have to accept the consequences of large -scale impairment.

In April 2022, the data of BAIC Futian Annual Report showed that the company's net loss was 50.06 billion yuan in 2021, a year -on -year decrease of 3372.75%. The main reason for the loss is that due to the impact of the impairment of the relevant matters of Baowo, the total profit is expected to be 4.656 billion yuan. In addition, the company's total profit of the listed company is expected to be 5.291 billion yuan due to the total investment income of Beijing Baowo's equity confirmation of investment income. Essence

Source: Economic Observer

Edit: Xing Zhibin

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