*ST Charlie Actively Promotes Asset Restructuring: Tianjin Bo County Or Greeting Pan Xia

Xiali, which landed on the Shenzhen Stock Exchange in 1999, is one of the earliest listed car companies in China. 20 years later, a brilliant generation of national cars will soon bid farewell to A shares.

In June 22nd, the *ST suspension of June 16th 000927.SZ resumed trading. The reason for the soaring share price is that in June 18th, the board of directors of the board of directors deliberated and passed a major asset restructuring related bill. After the transaction is completed, the controlling shareholder of the listed company will change from FAW shares to iron shares.

In 2019, FAW Xiali, a poorly managed company, made two major decisions: first, to establish a joint venture with Bo county through mixed changes, and to continue to engage in automobile manufacturing and sales business by using existing plant, equipment, part of personnel and production qualification; and the two is to transfer the "shell" resources of the market company to the railway company through assets reorganization.

From a series of announcements released on June 20th evening by *ST Xiali, it is continuing to actively promote the reorganization of assets with China Railway. At the same time, we are continuing to deepen the personnel reform of the company and study the plan to lay off laid-off workers.

However, FAW Xiali adjusted the restructuring plan. The industry speculated that the reason for the adjustment was related to the Bo county automobile, which was rumored to have broken the capital chain recently.

FAW shares intends to transfer the 43.73% of its FAW Xiali shares to China Railway Materials Limited by Share Ltd free of charge (hereinafter referred to as "iron shares"). However, the issue of shares buying assets, the scope and scope of assets, the issue of shares and the exchange of assets have all changed.

In addition, according to the new reorganization plan, FAW Xiali transferred assets to wholly-owned subsidiary Xiali, and at the same time, according to the principle of "walking along with assets", all employees of FAW Xiali were transferred to Xiali in accordance with the principle of transfer of employee labor relations in accordance with the employees' Congress. Xiali's 100% stake and Xinan insurance 17.5% stake will be directly transferred to FAW's designated takeover side FAW asset.

For Xiali, the dream of building a car is still there after bidding farewell to A shares. But the plight of the joint venture Bo county also makes Tianjin's future uncertain.

Where does Xiali go?

In June 14, 2002, FAW Group signed a restructuring agreement with Tianqi group. Tianjin Xia Li, Huali automobile and joint venture with TOYOTA were incorporated into FAW system.

After "Tianyi reorganization", under the guidance of Xu Xianping, general manager of FAW Group and general manager of FAW Xiali, FAW Xiali achieved a turnaround after a year, and became the first car company to break through 200 thousand cars in 2005.

However, after a series of high-level personnel changes, FAW Xiali began to go downhill. Due to various reasons, Xiali limited to the low-end economic car industry, products and technology are lagging behind, and in the FAW Group, Xiali and FAW car itself has internal competition. Xiali missed the market opportunity, and sales began to decline year by year.

Since 2013, FAW Xiali has been losing money for years. In order to maintain the shell resources of listed companies, it has repeatedly sold assets to "survive". Prior to that, FAW Xiali had a 30% stake in FAW TOYOTA, but due to serious losses in 2013, 2014 and 2015, FAW Xiali decided to sell FAW TOYOTA 15% stake to FAW in August 2016 and received 2 billion 561 million yuan of funds to develop its own brand. In March 2018, the overloaded FAW Xiali also sold the remaining 15% stake to FAW shares. Since then, FAW Xiali has no high-quality assets in its hands.

In 2017, Xu Liuping took the lead in FAW and began to vigorously reform. Among them, in the autonomous sector, Xu Liuping focused his work on the red flag.

At the same time, FAW Xiali began a series of actions to sell assets and restructure.

In September 27, 2018, FAW Xiali, a wholly owned subsidiary of Tianjin FAW Huali Automobile Co., Ltd., transferred 100% stake to the parent company of the new vehicle force, the Nanjing company. The transfer price of the shares was 1 yuan (Nanjing Zhixing had to pay FAW Xia Li 800 million yuan debt and 54 million 620 thousand yuan salary for the FAW Xiali company).

In 2019, FAW Xiali announced the establishment of a joint venture with Bo county automobile. FAW Xiali invested 505 million yuan in the assets and liabilities of vehicle related land, plant and equipment, with a shareholding ratio of 19.9%. Bo County car invested 2 billion 34 million yuan in cash and its shareholding ratio was 80.1%. It can be said that for the joint venture company, FAW Xiali has produced almost all of its assets and is only a minority shareholder of the joint venture company. On the other hand, FAW Xiali's "shell" resources are transferred to China Railway.

In more popular terms, Bo county will take the main business of FAW Xiali. At the same time, FAW Group's overall listing has also removed the obstacles to competition in the same industry.

According to the original plan, most of the employees of FAW Xiali will also be transferred to the joint venture with assets. Xiali will enter a new stage of development. However, the young Bo county automobile does not have the strength to take over the plate.

Difficulty in resettlement

For FAW Group and FAW Xiali, how to resettlement employees has become a big problem after the establishment of a joint venture with Bo county.

At the end of 2019, FAW Xiali held a staff congress to discuss the future direction of the staff. In short, it can be divided into three directions: internal retreat, post employment and joint venture.

About more than 1000 men and women over the age of 50 and over 40 years old are retired. At present, there are more than 100 people left in FAW Xiali, more than 300 are waiting for posts, and 800 have gone to the joint venture company. An insider familiar with FAW Xiali told reporters on twenty-first Century economic report.

An unemployed FAW Xiali employee told reporters that at present, the monthly salary is only 980 yuan, and social security and medical insurance have been cut off for a while.

In May this year, FAW Xiali set up Xiali operation company, plans to transfer assets, liabilities and personnel to Xiali. However, the registered capital of Xiali's operation is only 1 million yuan, and there has not been a proper employee resettlement plan.

A staff member who participated in the staff meeting told the economic news reporters twenty-first Century that the leaders of FAW Group headquarters were involved in the work, and the employees expressed their demands.

According to *ST Xiali's new announcement, Xiali's registered capital increased from 1 million to 50 million, and will be transferred to FAW assets. To a certain extent, this is a guarantee for the employees who are on the move and waiting for the post.

According to the announcement issued by *ST Charlie, 832 employees voluntarily broke up labor relations with FAW Xiali and signed a labor contract with Tianjin county.

However, those employees who went to the joint venture company failed to work on time. According to information previously released by Bo county automobile, its first car was put into operation in late 2019 and began to be delivered in the first quarter of 2020.

However, a staff member from Tianjin Bo County told reporters that the new joint venture has not yet rebuilt the factory, and the impact of the epidemic is still unknown. He also told reporters that employees from FAW Xiali to Tianjin county had not been paid for months.

In fact, Bo County car is wandering around the edge of life and death.

"Bo County car is currently facing serious economic difficulties, to employees, shareholders, suppliers, local governments and partners to bring losses and adverse effects." In June 13th, Huang Ximing, founder and general manager of Bo county automobile, announced an open letter that he would reposition the business model and strive to get out of the predicament.

In June 15th, Bo County car announced that the whole staff was waiting for the post. During the stay, the cost of living was 2480 yuan / month.

Tianjin county or greeting pan Xia

The tight capital chain is the main reason for the trouble in Bo county. Prior to that, Bo county automobile claims to have gone through 5 rounds of financing, of which the fifth round of financing occurred in June 2019, the amount of financing is 2 billion 500 million yuan. The first 4 rounds of financing did not disclose the exact amount.

It is worth noting that in April of this year, the Shanghai think car Group Technology Co., Ltd., which owns 97.9% stake in Bo County, was subject to administrative penalties. Shanghai Minhang District human resources and Social Security Bureau requires Shanghai to consider paying more than 600 employees' wages in time.

The shortage of capital chain in Bo county has a direct impact on the operation of Tianjin's Bo county.

According to the cooperation agreement signed before, the car should be paid in the form of currency to the joint venture company in the first thirty days from the date of the establishment of the joint venture company and obtain the business license. In the 6 months after the establishment of the joint venture company and the qualification of the vehicle production qualification, the joint venture company will pay second RMB 1 billion 34 million yuan RMB after the establishment of the joint venture company within 6 days.

However, according to the relevant announcement issued by *ST Xiali, the 1 billion yuan contribution of Nanjing Bo County failed to pay on schedule. Up to now, it only invested 14 million 100 thousand yuan.

*ST also said that the company has sent 2 letters and 3 letters to Bo county. He also said that if Bo County continued to default for more than 60 days, it would have the right to terminate the agreement with Bo county.

If Bo county has not been able to produce funds, the joint venture of Tianjin Bo county will eventually be unable to land. For the future of FAW Xiali, it will also have a significant impact. However, in June 21st, a person familiar with FAW Xiali and Bo County in Tianjin told reporters in twenty-first Century economic report that a company with a background of state-owned assets was interested in receiving Tianjin's Bo County, after which the company had visited Tianjin county.

"(FAW Xiali) Chun sent D80 this car, I think in fact, whether from the interior or shape, has been close to the mainstream market shape, but no country six of the models, a difference of funds. Some personnel, factories, equipment, mold improvement can also continue to build cars. If anyone wants to do this, he can do it. " These people told reporters.

However, in the past two years, the enthusiasm of local capital for the new power of car manufacturing is decreasing and gradually becoming prudent and rational. If anyone is willing to accept Tianjin Bo County, it will be challenging to launch products and be accepted by the market.

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