On October 26, just as the market was eagerly anticipating the bond payment of Brilliance Auto Group Holdings Co., Ltd. (hereinafter referred to as "Brilliance Auto"), Brilliance Auto issued an announcement stating that the company had not yet filed with CSI Shanghai The branch paid the redemption payment for the 2017 non-publicly issued corporate bonds (second phase) (bond abbreviation: 17 Huaqi 05). The company is still trying to raise capital and negotiate settlements with investors.
On the same day, Brilliance Auto responded to the media and said, "There are indeed temporary difficulties in funding, so it has been unable to pay the maturing bonds on time. The group is actively working on solutions and believes that Brilliance will actively and properly resolve the bond issue." "From October 21 to now, Brilliance Auto has defaulted on its debt for five days. During these five days, various parties in the market have been discussing this issue.
A business person engaged in non-performing assets said that in fact, the debt crisis of Brilliance Auto has emerged since the second half of last year. The non-performing asset portfolio of Brilliance Auto has begun to be sold at a discount, and some discounts are even deeper. It was very big. At that time, financial institutions were cautious about Brilliance Auto's debt problem.
In addition to the defaulted bonds above, Brilliance Group currently still has 14 bonds that have not been repaid, with a total balance of 17.2 billion yuan, and the status of the bonds is shown as normal. According to data from GF Securities Development Research Center, Brilliance Auto Group’s maturity and repurchase pressures are concentrated in 2021 and 2022. The bond maturity and repurchase scales are 6.5 billion yuan and 9.2 billion yuan respectively, involving 4 and 8 bonds respectively. Only. The bond maturity and resale scales are 6.5 billion yuan and 9.2 billion yuan respectively, involving 4 and 8 bonds respectively.
In addition, Brilliance Group also breached trust and other aspects.
According to Dagong International’s announcement, Brilliance Group should allocate quarterly interest payable on September 21, 2020. As of October 14, 2020, Brilliance Group has not transferred the quarterly interest payable to the custodian account of the debt investment plan.
Jiangsu Trust Office also showed that as of October 15, Brilliance Group had failed to repay the loan principal of 1.001 billion yuan, interest of 20 million yuan, and penalty interest of 6.6838 million yuan on time. These funds were supposed to be paid on time. Payable on October 12th.
In fact, long before the "17 Huaqi 05" was redeemed, Brilliance Group had been deeply involved in the whirlpool of public opinion regarding asset freezes, equity sales, and long-term employee leave.
It is understood that Brilliance Group currently has a huge debt of more than 100 billion. Brilliance Group's 2020 bond semi-annual report shows that the group's total liabilities are 132.844 billion yuan. After deducting goodwill and intangible assets, the asset-liability ratio is 71.4. The balance of cash and cash equivalents at the end of the period was 32.677 billion yuan.
And since August, Brilliance Group has added a total of 17 new pieces of information on persons subject to execution, of which many execution targets amounted to more than 100 million yuan.
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Under this circumstance, this default may cause a chain reaction of bond defaults, and Brilliance's future is uncertain.
Relevant people analyzed, "Brilliance Automobile Group's default is a typical state-owned enterprise default event. After divesting BMW Brilliance, Brilliance Automobile Group's independent brands have weak profitability and poor asset quality. The government gave up the rescue. In the end, the capital chain broke and led to a default. After the Brilliance Auto Group defaulted, it may negotiate an extension with its creditors, or it may face reorganization. Taking Northeast Special Steel and Shenji Co., Ltd. as examples, they usually use cash settlement and debt-for-equity swaps. Adopting differentiated solutions for financial claims and non-financial claims "
Brilliance Auto was once the envy of other domestic car companies.
In 1987, Shenyang already had two automobile manufacturing plants. The local people felt that the benefits were good, so they asked Zhao Xiyou, the former deputy director of the Shenyang Agricultural Machinery and Automobile Industry Bureau, to establish a third automobile manufacturing plant. Zhao Xiyou quickly merged More than 50 auto parts companies in Shenyang jointly formed Jinbei Automobile.
They plan to issue 100 million yuan in shares. This was a new thing at the time, but seeing that there were more people than there were people who contributed money, after more than a year, there were very few responders and less than 30,000 yuan was raised. This figure is really disappointing.
At this time Yang Rong came on stage.
Under Yang Rong’s planning, Brilliance was listed in the United States, Hong Kong, and Shanghai. With money, Brilliance Auto entered the fast lane overnight. From R&D, production expansion, and sales promotion, we have strong financial support. Hiace was a hit as soon as it was launched, defeating Changchun FAW's "Jiefang" van at that time, and Brilliance Auto became one of the most promising domestic brands in the country.
Since 1996, Jinbei Bus’ annual sales have grown at a rate of 50%, from 9,150 units in 1995 to 60,000 units in 2000, ranking first in the light passenger market for many consecutive years. In 2017, Jinbei Bus sales reached 7 billion yuan, and its profits were second only to Shanghai Volkswagen and FAW-Volkswagen.
In 2001, Yang Rong, who had always been low-key and mysterious, was awarded the title of "Honorary Citizen" by Shenyang City. At the end of the year, Yang Rong ranked third in the "Forbes" rankings.
The smug Yang Rong said that he will continue to increase investment in Jinbei, so that Jinbei's automobile production will reach 500,000 vehicles in 2005 and one million vehicles in 2020.
However, due to various reasons, Yang Rong ran away.
After Yang Rong left, Brilliance first delisted from the US stock market. However, after a few years, except for the BMW project, several other product lines failed to meet expectations. The product system was chaotic, lacked pillar models, Channel construction is slow and the brand is getting weaker and weaker. Since 2011, Brilliance Auto's annual revenue of more than 90% has been entirely due to BMW, while Jinbei and Zhonghua have become increasingly marginalized.
In October 2018, BMW Brilliance set a precedent of increasing the share ratio of joint ventures. Of course, foreign investors knew that this was a profitable business, and increased their shareholdings to 75 at a price of 29 billion. By the end of 2022, Brilliance Automobile The group will receive approximately 36.8 billion yuan in principal and interest from the equity transfer.
But this is more like fishing in a river! By then, Brilliance China's profits from BMW Brilliance will be cut in half, and it will follow the same path as Lifan.
This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.