For today's stock market itself when the liquidity is about to be exhausted, relying on car-making to alleviate the crisis of the headquarters is tantamount to asking for fish. But in the words of a person who is in the middle of it: what else can I do? All we can say is, good luck to them.
Wen 丨 Wisdom Driving Network West Young Master's Bei and Wang Shuoqi
Editor| Mr. Goyanagi
The two real estate tycoons, 64-year-old Xu Jiayin and 52-year-old Yao Zhenhua, who are a full round apart, shouted the slogan of accelerating mass production in the spring of 2022.
In the eyes of the outside world, this slogan has comedic overtones, but from the scene of the two people's speeches, the automobile business is saddled with the group's ardent expectations for getting out of the predicament.
As a representative of cross-border car manufacturing of real estate enterprises, after the recent policy pressure on the real estate industry has gradually decreased, there has gradually become a voice.
Six days ago (March 22), when xu Jiayin appeared in Evergrande New Energy Automobile Group's mobilization meeting of "three months of hard work, to achieve Hengchi 5 mass production" was disseminated among the media, some media people commented: "Don't make trouble."
This is not the first time that Hengchi 5 has announced mass production.
Xu Jiayin, who still retains the identity of the chairman of Evergrande, has left a slogan to the outside world:
"The automobile group should work hard day and night, work hard for three months, and on June 22, it must achieve the mass production of Hengchi 5, laying a solid foundation for the healthy and sustainable development of Evergrande Automobile."
Evergrande Automobile and Baoneng Automobile, the representatives of cross-border car manufacturing as real estate developers in the new car-making movement movement in the past few days.
▲ Hengchi 5 appeared in Guangzhou Hengchi Exhibition Store today; source Weibo @ Auto Micro Vision
However, the shadow of the debt of the real estate groups behind them has not disappeared, and even the debt problem is becoming more urgent.
Compared with the great fanfare of Evergrande Automobile, the appearance of the founder of Baoneng Group was slightly embarrassing, and on March 22, the two WeChat public accounts of "China Baoneng" and "Baoneng Automobile" released the same message "Chairman Yao Zhenhua Inspects the Resumption of Work and Production of Baoneng Automobile Shenzhen Factory", which said that "On March 21, Yao Zhenhua walked into the Shenzhen factory of Baoneng Automobile for work inspection. ”
But at about the same time, the official website of the Guangzhou Intermediate People's Court in Guangdong Province published a message that Yao Zhenhua, chairman of Baoneng Group, was "missing".
That night, Yao Zhenhua appeared in the "Economic Information Network" column of CCTV Financial Channel and responded to the "unknown whereabouts":
"After seeing the news report, the company sent someone to contact the Guangzhou Intermediate Court at the first time and received the legal documents at the first time." All legal documents, we will handle very seriously, take seriously. This time, in fact, Baoneng encountered some temporary liquidity difficulties. ”
This liquidity problem is in the words of Yao Zhenhua: "A small business borrows 700 million yuan from the Bank of Guangzhou, and owes a little interest to the bank." ”
After the CCTV report, the official website of the Guangzhou Intermediate People's Court in Guangdong Province deleted the link to the relevant announcement.
The paradox of this matter is that the people who eat melons in the outside world are only concerned about "whereabouts are unknown", but no one pays attention to Yao Zhenhua's inspection of the Shenzhen factory and says something similar to Xu Jiayin:
"This year is a key year for the development of the Shenzhen factory, and we must make every effort to promote the development of existing business and increase the intensity of technological transformation." Time is precious, windows are important. It is hoped that the Shenzhen plant will work hard and make every effort to promote the mass production of Baoneng Automobile's first smart pure electric SUV and other models.
Sure enough, they were all real estate merchants, and the wording and sentences that boosted morale were highly consistent.
——01——
The three major questions faced by local merchants and commercial vehicles
Baoneng and Evergrande, originally the two leaders of China's real estate industry, but also industrial diversification and capital players, the two almost at the same time in the best stage of life and career at the same time into the car business, and today Yao Zhenhua and Xu Jiayin into the same dilemma.
As they repeated the slogan "Mass Production" to boost team morale and confidence, there were three questions to answer:
First, how much debt does the parent group owe, can it support the sustainable and healthy operation of the automobile project?
Second, when the group's debt dilemma is not solved, when cash flow is urgently needed, why do we urge mass production of automobiles? And even mass production does not have ready-made delivery orders and a clear audience?
How to persuade consumers to buy consumer goods that a group is heavily indebted to?
In fact, before answering these three questions, the outside world has always had a heavenly question about real estate developers building cars:
That is, they do not really want to build cars but want to enclose land.
Like the financial media Wall Street reference incomplete statistics released figures: in the past few years, in the name of Baoneng Automobile, 18 plots of land, with a total area of 4.9448 million square meters, mainly industrial land, costing more than 3.2 billion yuan, most of the land in Baoneng Automobile Circle failed to put into production on time.
However, the intelligent driving network (ID: ZhiNengQiChe) believes that this problem does not need to torture the sincerity of businessmen over and over again, when today's electric vehicle industry is hot, capital is crazy influx, real estate businessmen and all businessmen see the business opportunities, as to whether it uses automobile projects to achieve further enclosure expansion, from the current two real estate groups on the expectations of new energy vehicle projects, it can be seen that it carries the real estate industry through new energy vehicles In the future, it is increasingly unclear.
After "housing is not speculation" has become a national policy, real estate businessmen with a keen sense of smell grasp the outlet of new energy vehicles is actually instinctive, and it is the only industry they can find and have the opportunity to enter the transformation task of the group.
Now let's return to the first question, how much money do both real estate groups owe?
Among them, Evergrande's data was released earlier, according to Evergrande's 2021 interim report, as of the end of June 2021, the group's total liabilities reached 1.97 trillion yuan, close to the GDP of South Africa in that year.
So has there been a significant improvement in that number now?
Earlier in the March 22 mobilization meeting, China Evergrande, along with its financial advisers, held a global creditor conference call.
At the conference call, Chen Yong, a member of the Risk Mitigation Committee of China Evergrande, revealed that Evergrande expects to propose a debt restructuring plan by the end of July this year, and in order to achieve this goal, the company will further strengthen communication with creditors.
Obviously, before the restructuring, Evergrande's car building has become a chip to leverage the negotiation of the debt pattern, and it is also a high-tech outlet chip for real estate companies to show creditors the transformation of enterprises.
At the specific debt level, Shaun, executive director of Evergrande Group, disclosed:
Evergrande's offshore debt is equivalent to US$22.7 billion, including US$14.2 billion of foreign debt issued by Evergrande as a whole, US$5.2 billion of foreign debt issued by Jingcheng, and US$3.3 billion of other foreign debt such as project financing and private placement financing.
There is currently no preparation for the publication of its total debt in the country.
An unexpected event was that during the simultaneous suspension of trading of Evergrande's three listed companies and the release of annual reports, it was exposed that 13.4 billion yuan of deposits of Evergrande Property became a pledge deposit, which was enforced by the bank.
According to the article "The Golden Lords Standing at the Gate of Evergrande" published by the "Finance and Economics Network" on March 21, it was reported:
After being successively "shouted by upstream and downstream suppliers to collect debts", financial institutions such as trusts and banks have also joined the team of public "debt collection" Evergrande. On March 16, Evergrande Real Estate added 13 new court announcements, of which 2 were from trust companies, and the plaintiffs were Tianjin Trust and China Chengxin Trust.
According to statistics, since the beginning of this year, there have been nearly 30 financial institutions such as trust companies that have collected debts from Evergrande Real Estate.
Among the 2,201 judicial cases in which Evergrande Real Estate Group was listed as a defendant, 83 involved financial loan contract disputes, of which more than half were added in 2022, and there were also many contract dispute cases involving debt disputes, commercial bill redemption and so on. Up to now, Evergrande Real Estate has been listed as an executor 50 times, and the total amount of execution has exceeded 9.957 billion yuan.
This can be interpreted as Evergrande's debt problem has not yet entered the stage of orderly and smooth resolution.
And the news that really boosted confidence during this period was:
On March 27, Evergrande Group held a regular work meeting on the weekly work of resuming work and resuming production, at which the latest situation of the group's resumption of work and production was disclosed. As of March 27, 771 projects have been required to resume work and production nationwide, and 734 have resumed work, with a resumption rate of 95%. Among them, 424 projects have returned to normal construction levels, accounting for 55%, and the total number of people returning to work nationwide has reached 154,000.
The meeting revealed that Evergrande will continue to strengthen the main responsibility of the project in the next step, resume sales as soon as possible, accelerate the payment of project payments, and make every effort to ensure the timely arrival of manpower and materials, ensure the continuous normal construction of the project, and achieve the delivery of quality and quantity to the owner at all costs.
At present, a group like Evergrande Group, which takes real estate as its main business, only the sale of real estate can bring positive cash flow to the company.
In terms of automobiles, Hengchi 5 appeared in Guangzhou Hengchi Automobile Exhibition Store today.
Yesterday (March 27), Liu Yongzhuo, president of Evergrande Automobile, said that Hengchi 5 has entered the announcement of new cars of the Ministry of Industry and Information Technology, and its first batch of sales centers and experience centers will be opened in 15 key cities in the near future.
The name Hengchi 5 appeared in the list of "Announcement of Road Motor Vehicle Manufacturers and Products" (Batch 353) released by the Ministry of Industry and Information Technology in February, and the model has now passed the one-month publicity period for new cars of the Ministry of Industry and Information Technology and has the sales qualification.
Evergrande Automobile's first mass-produced model, the Hengchi 5, was originally rolled off the production line on December 30 last year, when a low-key off-line activity was held at the Tianjin plant.
What about Baoneng?
According to the article "Yao Zhenhua Disposes of High-quality Assets to Resolve the Liquidity Gap of 20 Billion Yuan" published by Changjiang Business Daily, Qoros sales have been "cut off" by the "waist" Baoneng Automobile Mass Production Fear Delay", Baoneng's financial situation has revealed the exact figure through an announcement in 2021 by Zhongju High-tech, which it controls:
The total assets are 830 billion yuan, the interest-bearing liabilities are about 190 billion yuan, the guarantee balance is more than 30 billion yuan, and the more urgent liquidity gap is about 20 billion yuan.
Compared with Evergrande's 1.97 trillion yuan, the 190 billion yuan debt does not seem to be an order of magnitude.
Baoneng is said to be preparing to promote the sale of 8 major asset projects to solve the liquidity crisis.
But the information received from the outside world is that Baoneng's debt crisis seems to be more urgent than Evergrande's.
It is reported that since August last year, Baoneng has almost no operating cash flow: even to the point where it cannot repay interest.
In December last year, Baoneng Group issued further explanations for the redemption plan, and once again promised to organize the completion of the redemption of investors' principal and income no later than June 30, 2022.
That is to say, on June 30, 2022, Baoneng will pay all the principal, interest and overdue interest of financial institutions, private equity funds and wealth management products.
This day will be Baoneng's D Day.
On March 10 this year, Guo Shibang, vice president of Ping An Bank, said at Ping An Bank's 2021 performance conference that as of the end of last year, Ping An Bank's non-performing rate of public real estate loans was 0.22%, and Ping An Bank's real estate insurance business was mainly based on Baoneng, of which the largest amount of 5.4 billion yuan of Baoneng City projects can immediately enter the judicial auction execution link, which means that completed housing can be listed for sale immediately.
Guo Shibang also said that Ping An Bank's consignment sales of insurance businesses are mainly concentrated in Huaxia Happiness and Baoneng.
Among them, the balance of baoneng automobile kunming project, ping an bank sales of products is 2.5 billion, is a total of 7 cases of land in the Xishan District of Kunming City as collateral, the first phase of the mortgage rate does not exceed 57%, the second phase does not exceed 64%. Ping An Bank has enforced the seizure of 100% of the project company's equity, bank accounts, mortgage project land and construction in progress.
Other Baoneng consignment sales of products that do not correspond to the project involve a total of two, a total of 2.3 billion yuan, both of which have provided a higher value of Xiangmi Lake equity pledge, higher security guarantees, and the product manager has been able to seize the relevant equity and promote the transfer of creditor's rights at the same time.
According to the corporate investigation, among the 149 judicial cases, Baoneng Investment was accused of court, including 13 financial loan contract disputes.
There are also reports that Yao Zhenhua has been restricted from high consumption, and the applicant is Huarong Financial Leasing.
In this context, Yao Zhenhua, who came to the Shenzhen factory on March 22, told employees: "Baoneng Group will, as always, firmly develop the new energy automobile industry without wavering." ”
A rather graphic comment on the Internet is:
Boss Yao still arrives at the company at 8:30 a.m. every day and leaves work at 11 p.m. His energy is still very high, and the amount of alcohol is as good as ever. His enthusiasm for work is all in new energy vehicles. “
However, from the perspective of the progress of the automobile industry, Baoneng Automobile is earlier than Evergrande, but the situation is more unsmooth than Evergrande Automobile.
Baoneng Automobile project is similar to the Evergrande model, one is Qoros Automobile with mature production lines and brands, and the other is the BAO brand, a high-end intelligent electric vehicle brand.
At the beginning of 2018, Baoneng Group acquired 51% of Qoros' shares for 6.63 billion yuan, becoming the controlling shareholder of Qoros Automobile.
However, Qoros sales have declined year by year, with Qoros selling 22,200 units and 12,100 units in 2019 and 2020 respectively (another data shows 13,600 units).
Last year, Qoros sales in 2021 were once again slashed, only about 5200 vehicles, of which october to December sales were less than 100.
There is no sense of presence in the market.
The BAO brand has been jumping tickets from release to model planning.
Yao Zhenhua urged mass production of the model is Baoneng Automobile's first smart pure electric SUV GX16.
It was originally supposed to launch in October 2021, but the latest news is that the GX16 will be put into production at Baoneng Automobile's Guangzhou base and rolled off the production line in July 2022.
How much money has Baoneng invested in the automotive business? Was it the auto business that crushed Baoneng?
Is one of the reasons, but not entirely.
In November 2021, Yao Zhenhua clearly described this in the "Letter from Chairman Yao Zhenhua to all employees of Baoneng Group":
"Since we made up our minds to transform into high-end manufacturing in 2016, we have invested more than 50 billion yuan in our own funds in the entire automotive industry chain. Coupled with the impact of the current epidemic and the impact of macro-control, we have also encountered temporary difficulties in capital flow. ”
He also mentioned:
"Our first core industry' 'big car' sector, after nearly 5 years of continuous investment and in-depth cultivation, has harvested the vehicle manufacturing capacity, two core brands, three major product routes, five major R & D centers, seven major production bases, forming a first-class comprehensive competitiveness, and becoming an important force on the new energy vehicle track."
On the issue of debt, he said:
"Our total assets reach 830 billion yuan, interest-bearing liabilities are less than 200 billion yuan, and the liabilities are basically collateralized by high-quality assets and properties, and their value is 2-3 times or even 3-4 times of its financing amount." In addition, Baoneng Automobile, Power Battery, Linkage Cloud, and Financial Sector have not been listed on the IPO, and the huge potential in the capital market has not yet been released. Our total assets are much larger than liabilities, the overall industrial structure is stable, the operating situation continues to improve, the asset quality is high, and the risk is completely controllable. ”
From the sincerity of the attitude to the specific planning, it is difficult to say that Baoneng built the car to play tickets, or simply to get the land to deceive the project questioning. Only from the results, the car did not create cash flow for Baoneng, which increased the debt of Baoneng Group.
Then we return to the second question, why is there still an emphasis on mass production when cash flow is so tight?
Who would have the courage to buy a large consumer product produced by two faltering companies for a decade in such a cold season?
——02——
Mass production is difficult and unclear target audience
Baoneng entered the car in 2016, evergrande entered the game in 2017, the first to cooperate with Jia Yueting's FF, although there was a dispute over the management right in the end, and finally parted ways, but at present Evergrande is still the largest shareholder of FF.
In the independent car manufacturing after Evergrande, through a series of operations including holding Guoneng Electric Vehicle Sweden Co., Ltd. (NEVS), the acquisition of Kanai New Energy, Hubei Tate Electromechanical Co., Ltd., the Netherlands e-Traction, the British wheel hub motor company Protean and other enterprises to form a technical advantage.
However, it is not known whether the latest technology is applied to the current mass production models.
The first is the Guoneng 93 model that Evergrande New Energy Automobile Group rolled off the production line at the Tianjin Guoneng Factory on June 29, 2019, which is actually a pure electric vehicle model based on the Swedish SAAB Phoenix E platform and Saab technology, and NEVS has completed the research and development of the model as early as before Evergrande entered the ownership.
But sales are not good.
The current main Hengchi 5 can also be described as a twist and turn, in the Ministry of Industry and Information Technology in February released the "Road Motor Vehicle Manufacturers and Products Announcement" (353rd batch) list appeared in the Hengchi 5 name, the model has now passed the Ministry of Industry and Information Technology new car one-month publicity period, with sales qualifications.
As the first model launched by Evergrande Automobile, Hengchi 5 is positioned as a pure electric A-class SUV, the new car is equipped with H-type through LED headlights and 21-inch rims, and the length, width and height dimensions of the model are 4725mm / 1925mm / 1688mm, and the wheelbase is 2780mm.
The market price is about 200,000 yuan, and the NEDC cruising range will exceed 700km.
At this price point, the upward must face tesla's wild bombardment, and the new forces will have to face the competition of Xiaopeng, Nezha, and zero-run, while benchmarking with most of BYD's products.
Like the Qoros brand that Baoneng won, for the Evergrande brand, the consumer group that buys their products is vague, and the identity labels of Xu Jiayin and Yao Zhenhua are difficult to attract today's consumer groups of electric vehicles.
——03——
The urgency of mass production is for financing
So why open up a new product line in such a demoralized situation?
This involves communicating with creditors and how to turn the automotive business into a quality asset.
According to reports, Shaun, executive director of Evergrande, said in communication with creditors that it is promoting the introduction of strategic investors of Evergrande Property and Evergrande Automobile, striving for the return of the value of the two listed companies and providing support for overseas debt restructuring.
Dragged down by Evergrande's debt crisis in 2021, Evergrande Automobile's market value fell from more than HK$700 billion at its peak to more than HK$20 billion.
Mass production is the key to boosting evergrande automobile's confidence, and it is also a winner and loser to attract strategic investors.
In parallel with the promotion of mass production vehicles, on March 24, Evergrande Automobile became a new automobile sales company with a registered capital of 100 million yuan: Hengchi Guorui New Energy Vehicle Sales (Shanghai) Co., Ltd.
The enterprise investigation of equity penetration shows that the company is indirectly wholly owned by Evergrande New Energy Automobile Investment Holding Group Co., Ltd.
Its business scope includes: new energy vehicle sales; charging pile sales; second-hand car distribution; centralized fast charging stations, online car business services, etc.
Among them, can the online ride-hailing business be regarded as an operational strategy of many new energy vehicle companies, that is, to directly purchase the parent company's automobile products through the operation of online ride-hailing, so as to realize the recovery of automobile subsidies.
We do not know that Bi Jing's current auto subsidies in various places continue to decline, and the normal procedure, China's new energy subsidies will officially end at the end of this year.
From the above analysis, we can see that mass production is indeed important, but who the audience is, is secondary.
In March 2018, Yao Zhenhua, who had just entered the Baoneng Group of Subjective Zhi Automobile, promised dealers: "For five consecutive years, invest 10 billion yuan per year for the research and development of Qoros new cars." ”
Yao also has a dream of building a world-class automobile group.
Xu Jiayin was even more heroic three years ago, he said: "3-5 years to become the world's largest and strongest new energy vehicle group."
Of course, Xu Jiayin's most well-known words are his car-making slogan: "Buy, buy, buy, close, circle, big, good."
Objectively speaking, the respective plight of Evergrande and Baoneng has nothing to do with the automobile industry, but the general dilemma faced by the real estate industry.
Today, it is reported that Sunac founder Sun Hongbin provided unlimited joint and several liability guarantee for a 4 billion yuan domestic public bond.
Use your own money to pay off the company's debts.
When the cash flow of the main business suffers a water outage, whether the car can become a new cash flow will not see the result in the short term.
In 2021, the capital market has risen by smelling cars, whether it is Xiaomi or Apple.
But for today' time when the liquidity of the stock market itself is about to be exhausted, relying on car-making to alleviate the crisis of the headquarters is tantamount to asking for fish.
But in the words of a person who is in the middle of it: what else can I do?
All we can say is, good luck to them.
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