Zheng Tong Automobile, which has encountered operational problems and capital crisis, has to rely on the sale of equity to partially solve the capital problem.
Zheng Tong Auto's 20 19 annual report shows that as of the end of 20 19, the current assets of Zheng Tong Auto were about HK$ 241400,000, down 3% year-on-year; Due to the growth of loans and borrowings, current liabilities increased by 8.5% year-on-year to HK$ 25.82 billion. Among current liabilities, short-term loans amounted to HK$ 654.38+07.028 billion, notes payable to HK$ 2.447 billion and short-term debts to HK$ 654.38+09.475 billion.
In 2020, Zheng Tong Automobile issued $654.38+73 million bonds at an annual interest rate of 12%, and placed shares at a discount of 15.5% in July of 16, raising 267 million Hong Kong dollars, and the total amount of the two financing was $440 million. However, on July 2 1 day, Zheng Tong Auto's installment loan of about $ kloc-0/billion was still in default. On July 22nd, Zheng Tong Automobile announced that it would repay 30% of the loan principal and interest in two installments, and the installment loan would be postponed to 202 1 year 1 month.
In addition, Zheng Tong Automobile's operating income in the first quarter dropped by 64.2% year-on-year to 365,438+0.365,438+0.00 billion yuan, and its net profit turned a loss of 54 million yuan, compared with a profit of 200 million yuan in the same period last year, further causing Zheng Tong Automobile to fall into financial difficulties under the influence of the epidemic.
Financial problems further led to the default of its dealers in not delivering cars. Zheng Tong Auto is a dealer group specializing in the sales and operation of luxury brands in China. Recently, dealers in Haikou, Shenzhen, Fujian, Foshan and other places were exposed that they could not deliver cars to consumers on time. The reason is that the cash flow of the head office is difficult, which leads to a long release time for customers' vehicles.
Who is Zheng Tong Group?
According to official website, China Zheng Tong Automobile Service Holding Co., Ltd. (hereinafter referred to as Zheng Tong Automobile) is a 4S dealer group in China, which distributes luxury and ultra-luxury brands such as Porsche, Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Volvo, finidi, Cadillac and other mid-market brands, and also operates dealers such as FAW-Volkswagen, Buick, Nissan, Toyota, Honda and Hyundai. 20 10 12 10, Zheng Tong Auto was successfully listed on the main board market in Hong Kong, and it was the first luxury car dealer group listed in Hong Kong.
20 1 1 staged the drama of "snake swallowing elephant" and acquired China Automobile South, whose business scale was twice as large, which became famous for a time.
On 20 15, Zheng Tong Auto established Zhengdong Finance, the first auto finance company controlled by a dealer group. What is even more amazing is that in 20 19, as the only auto finance company controlled by a dealer group, Zhengdong Finance successfully went public in Hong Kong, becoming the first of 25 auto finance companies to land in the capital market.
However, as a luxury car dealer, Zheng Tong Auto did not enjoy the rising bonus. The annual report of 20 19 shows that its annual revenue decreased by 6.2% year-on-year to 35 1.4 billion yuan, and its net profit decreased by 45% year-on-year to 664 million yuan. In 20 19, Zheng Tong Automobile achieved new car sales of 103200 vehicles, down 8% year-on-year.
The company's financial services revenue was RMB 965,438+0 million, up by 7.9% year-on-year, but the reportable profit decreased by 654,38+04.7% year-on-year to RMB 530 million. After-sales service business is the only sector with an average increase in net profit. During the period, the accumulated service was 15 17700, up about 17 1% year-on-year, and the revenue was 477 1 billion yuan, up about 10.2% year-on-year.
However, the number of distribution networks opened by Zheng Tong Automobile last year decreased by five to 135, and nearly 20 stores were located in Hubei, which was greatly affected by public health incidents. Zheng Tong's auto network expansion continues to slow down, which makes the future new car sales, after-sales business scale and auto finance and other derivative businesses lack strong enough growth momentum.
Zheng Tong Auto, which focuses on luxury brand management, has encountered financial crisis while the sales of luxury cars have continued to grow, which has to make people feel embarrassed.
In the first half of the year, nearly 40% of dealers lost money, and thousands of dealers withdrew from the network.
The present situation in Zheng Tong has to remind people of the once "Big Brother" huge group. In 2065, 438+2008, after the huge group fell into debt crisis with huge losses of 665,438+55 million yuan, it was successively brought to court by financial institutions such as CITIC Bank and Shenzhen Qianhai Sheng Da Asset Management Co., Ltd. Last September, the huge group was ruled by the court to accept reorganization because it could not repay its debts on time. In the same month, Shenshang Group, Shenzhen Wei Yuan and Guoyun announced the formation of a consortium, becoming the intended investors to reorganize the huge group.
On July 28th this year, Huge Group announced that a total of 65.438+0.29 billion shares of the company held by Pang Qinghua and related natural persons will be transferred to the securities account of Shenshang North, a related party designated by the restructuring investor. Huang Jihong, president of Shenshang Group, the parent company of Shenshang North, will become the actual controller of the huge group.
On the road of radical expansion, the giant group is crazier than Zheng Tong Auto. Around 20 1 1, the huge group used up 6.04 billion yuan of raised funds within two months after its official listing. By June of 20 1 1 year, Huge Group had added 4 10 auto business online stores in 28 provinces, municipalities, autonomous regions and Mongolia. By 2065438+ year, Huge Group chose to buy land and build its own stores. From 20 10 to 20 13, the huge group owns 20,000 mu of land in China. Since then, the rapid expansion has caused more and more capital holes, and the huge group suffered huge losses in 20 18.
These are just the epitome of the whole dealer field. It is understood that in 20 19, under the influence of the continuous shrinking market, terminal retail made a big profit, and the loss of dealers reached a historical high of 44%. Since 2020, the automobile market has been hit by the epidemic again, which has further reduced the national automobile sales, which should have been worse than the previous year, but the final data shows that nearly 40% are still at a loss.
Although 2020 is better than last year, the situation is still not optimistic. According to the Survey Report on the Living Conditions of Automobile Dealers recently released by china automobile dealers association, in the first half of this year, 38.3% of the dealers lost money, and 2 1.5% made a profit, which means that the total number of dealers who did not lose money this year accounted for 6 1.7%, higher than 56% last year.
However, the report shows that in the first half of 2020, the overall satisfaction of dealers continued to decline, with a score of 76.0, while at the end of last year, the satisfaction of dealers was 77. 1, which also shows that the survival pressure of dealers is increasing after the epidemic.
The double decline in sales and profits has caused more and more dealers to fall. According to the statistics of the Circulation Association, the total number of passenger car dealers in the first half of 2020 was 29,773, which was 0.7% lower than that at the end of 20 19. The number of dealers who choose to quit the network is 10 19. Although the most difficult moment in the first half of 2020 has passed, most car dealers are still not optimistic about the trend of the auto market this year. Ron Hong Xue said that according to the expectation of 2020, only 29% of dealers think that the whole year can achieve positive growth. Therefore, 2020 is still a "difficult" year for the automobile industry.
Summary:
At present, the competition in the automobile sales market is intensifying. In order to seize the market, dealers fight price wars at the expense of profits, and the problem of price inversion is serious, which undoubtedly further leads to operational problems. The successive problems of several major automobile dealer groups may also mean that the industry will usher in changes.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.