According to the Liaoning Provincial Discipline Inspection Commission, Qi Yumin, the former party secretary and chairman of Brilliance Automobile Group Holding Co., Ltd., accepted disciplinary review and supervision investigation.
Qi Yumin
Looking back at Qi Yumin's life, he entered the second workshop of Dalian Heavy Machinery Factory as a trainee, became the chairman, general manager and party secretary of Dalian Heavy Industry Group Co., Ltd., then became the deputy mayor of Dalian, and finally retired from Brilliance Auto in March 219.
Qi Yumin's life along the way can be described as glamorous, but after retirement, due to the bankruptcy of Brilliance, he "lost his last days".
However, Brilliance's defeat has already buried many hidden worries in the Yangrong era.
yangrong era: the beginning of brilliance
Jinbei, once on the verge of bankruptcy, decided to try shareholding system reform to raise funds.
Yang Rong, who has been in the financial and securities market for many years, bought 46 million original shares of Jinbei in one fell swoop and officially entered the automobile industry. After some capital operation, Yang Rong held 51% shares of Jinbei and became the largest shareholder.
Yang Rong
But Yang Rong's ambition goes far beyond this. He also wants to list Jinbei on the US stock market. At that time, there was an important condition for enterprises to list in the US stock market, that is, they could not hold control rights privately.
At that time, it was the 199s, but Yangrong did what is common in the financial market today-set up a company in an unknown small place, which not only had low taxes, but also made the capital out of personal name.
The entertainment circle brought Horgos, a tax haven in Xinjiang, into everyone's sight. At that time, Bermuda was the chosen place for Yangrong, and Brilliance China Automobile Co., Ltd. was opened.
In order to raise funds, Yangrong brought in four institutions, including the Central Bank and China Institute of Finance, and established the "China Financial Education Foundation", which held 55.85% equity of Brilliance China.
After some operations, Brilliance China has enough funds and a clean background.
in p>1992, it was successfully listed in the United States.
With the blessing of money, Jinbei, the first "general", changed the dilemma of needing to raise funds to survive at that time, and even ranked first in the light passenger market.
Later, Yang Rong founded Brilliance China, produced ZTE with Tianye Automobile, married BMW, took over Sanjiang Renault, and promoted the joint venture between Jinbei and GM ...? At that time, Brilliance won and lost in a series of production research and development, but BMW was undoubtedly a golden doll, which brought a lot of benefits and income to Brilliance.
As the chairman of Brilliance, Yang Rong had a great time. At that time, Brilliance's market value was as high as 24.6 billion. However, in the complicated and continuous cooperation and financing, Yang Rong became entangled with five listed companies and 158 affiliated companies, thus weaving a complicated interest network.
projects that are dragging their feet but can't be cut off in time, partners who eat money but can't figure out how to solve them ...? ... has become an irreparable loophole in the development process after Brilliance.
Later, Yang Rong lost to the United States due to economic problems, and Qi Yumin officially appeared.
Qi Yumin's era: the end of Brilliance
Qi Yumin, who took over Brilliance from the position of deputy mayor of Dalian, had a glorious past. When he was in Dalian Heavy Industry Group, he built the only international-level modern major equipment development base and core parts manufacturing base in China heavy industry at that time.
From business to politics, Qi Yumin was once a leader in the industry. However, after taking office in Brilliance, Qi Yumin deviated from the principle of "exchanging market for technology".
Perhaps it is a lack of determination to reform vigorously, or perhaps it really has no potential for independent research and development. Although Brilliance has all kinds of technologies that Qi Yumin slapped the table and asked BMW for, it has never been able to eat and digest them.
In p>215, Huasong 5, a high-end commercial vehicle, used a 2.T engine from BMW, but it was defeated due to frequent quality problems.
In p>218, Brilliance China V7 still adopted BMW's core technology, but it did not achieve market success.
If Brilliance is personified, this little boy who has successfully obtained an ID card in the United States through many twists and turns once wanted to make great achievements, but his lack of personal ability forced him to open his begging hand to the "rich father".
Embarrassed, begging didn't make Brilliance successful. After many failures, he hid behind BMW with a frustrated heart.
Even if people who bought BMW Brilliance wanted to cut it out, Brilliance was indifferent.
If the days go on like this, Brilliance can still live in peace during the period of cooperation with BMW.
but the era of radical progress can't tolerate cowardice.
In p>218, among the major measures of opening wider to the outside world announced at the Boao Forum for Asia, China decided to relax market access on a large scale, including relaxing restrictions on the ratio of foreign shares.
the national development and reform commission has made it clear that the automobile industry will open in the transitional period. In 218, the restrictions on the ratio of foreign shares in special vehicles and new energy vehicles will be cancelled; In 22, the restrictions on the ratio of foreign shares in commercial vehicles will be abolished; In 222, the restriction on the ratio of foreign shares in passenger cars will be abolished, and at the same time, the restriction on no more than two joint ventures will be abolished. Through the five-year transition period, the automobile industry will completely lift the restrictions on foreign investment.
In order to protect the relatively weak enterprises in China, China limited the foreign investment in joint ventures to 5%.
Now that this protective cover has disappeared, Brilliance in Qi Yumin's era became the first enterprise in China that lost its sovereignty. BMW acquired a 25% stake in BMW Brilliance for 3.6 billion euros, raising its shareholding ratio to 75%.
Brilliance, whose original independent brand didn't make money, relied on the 5% profit share of the joint venture BMW Brilliance to survive. However, after the adjustment of the share ratio of the joint venture, the 25% profit is not enough to fill the black hole of Brilliance's own brand, which has never been fruitful.
After Qi Yumin retired, Yan Bingzhe took over as the chairman of Brilliance, but he didn't know what his ability was, and everything was powerless.
bankruptcy for default?
on October 23rd, 22, Brilliance broke the contract for the first time after many loans and non-standard overdue, and failed to pay private placement bond "17 Huaqi 5". On November 16, Brilliance Group announced that Brilliance Auto has constituted a total of 6.5 billion yuan in debt liquidated damages, and the overdue interest amount is 144 million yuan.
On November 2th, Shenyang Intermediate People's Court accepted the creditor's application for reorganization of Brilliance Group, marking the official entry of this automobile enterprise into bankruptcy reorganization procedure. However, it is worth noting that the relevant person in charge of Brilliance Group said that the reorganization only involves the independent brand sector of the group headquarters, and does not involve listed companies under the group and joint ventures with BMW and Renault.
This makes the bond investors of Brilliance Group wonder: Is Brilliance going to evade the debt?
The data shows that the net profit of Brilliance China in 219 was 6.763 billion yuan, of which BMW Brilliance contributed 7.626 billion yuan. After excluding BMW Brilliance, Brilliance lost nearly 863 million yuan. In 22, the net profit of Brilliance China was 4.45 billion yuan, and after excluding BMW Brilliance, the loss was 34 million yuan.
According to the person in charge of the State-owned Assets Supervision and Administration Commission of Liaoning Province, Brilliance Group has been in a state of loss for a long time, and its debt ratio remains high.
The bad news is not only that. According to the semi-annual report of Brilliance Group's bonds in 22, its total liabilities amounted to 132.844 billion yuan. After deducting goodwill and intangible assets, its asset-liability ratio was 71.4%, and the balance of cash and cash equivalents at the end of the period was 32.677 billion yuan.
today's bankruptcy reorganization is more like taking a firm seat. Brilliance will divest its poorly run business and escape some of its debts, but keep its profitable cows.
In the process of bankruptcy reorganization, enterprises usually adopt cash settlement and debt-to-equity swap.
However, since the bankruptcy reorganization does not involve joint ventures such as BMW, Brilliance will have no money to repay if it is paid in cash; If debt-to-equity swap is adopted, what is the value of its shares?
Therefore, no matter which solution is adopted, Brilliance investors will face huge losses.
Conclusion
The Yangrong era left too complicated financial relations for Brilliance, while in the Qi Yumin era, Brilliance made great efforts, but it did not get its own rapid development.
shopping is either one or the other. When the car was in the incremental market, there were consumers everywhere, and there was not much contrast at that time. There were always "several fish" falling into the "fish pond" of Brilliance.
but now it is a stock market, and each company is trying to maintain the existing customer base before developing a new customer base. Before, the author once talked about the involution of the car circle (further reading: the car circle is also "involuted": this war has no back road and cannot be withdrawn? |? Jia xinguang auto review), that is to say, the importance of refining the target population to the current enterprises.
However, Brilliance is not a winner in the incremental market, but now it is a stock market, and its situation is even more difficult because of Matthew effect.
it is not wrong to rely on joint ventures to develop itself, but Brilliance has no foothold of its own, and can only accept the result of being eroded by the partners.
car companies are "cars" before "enterprises". No matter what kind of stories and struggles it has had in the past, without a good "car", "enterprise" is empty.
This article comes from the author of Chejia, car home, and does not represent car home's standpoint.