Which Car's July Salary Has Been Paid in Full! The Number of Intenders Increases to 53, Production Line Equipment Runs Normally, Still Retains Over 400 Employees! Which Car's "Resurrection" is Expected?
Bankruptcy case accepted by court less than two months ago, Which Car has new developments.
Recently, it was reported that Which Car employees were busy cleaning up the factory, organizing materials, testing equipment, etc. This is seen as a signal that Which Car's production may be about to resume.
On August 4th, reporters from Everyday Economic News learned from multiple Which Car employees that Which Car had paid its employees in full for July, but there has been no notice of restarting production yet.
"Cleaning up the factory, organizing materials, etc. are our regular tasks and have always been done, not just to prepare for resuming production." A Which Car employee at the Jiaxing Factory told reporters that the factory currently has around 140 people working normally.
The Shanghai company staff person interviewed by reporters said that they are mainly focused on running the Jiaxing Factory, while Shanghai employees are still working from home.
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53 Intenders Sign Up to Participate in Reorganization
On June 30th, the management person of Héchuán New Energy & Motor Co., Ltd. released a public notice stating that Zhejiang Province Jiaxing Intermediate People's Court had accepted the company's bankruptcy reorganization case on June 12th and appointed Zhejiang Haihao Law Firm, Zhejiang Zhisheng Law Firm, and Shanghai Junyue Law Firm as joint administrators.
To expedite the process of reorganizing Héchuán New Energy & Motor Co., Ltd. and realize the maximum value of its assets, the management person has announced a public notice calling for intended investors to participate in the reorganization.
"After the bankruptcy case is accepted, the management will take over the company's property, clear up debts and assets, and then settle the debts." Wang Yining, partner at Wanhao Law Firm, explained to reporters.
According to Ali Asset, the intended investor recruitment period for Héchuán New Energy & Motor Co., Ltd. is from July 10th to September 8th, with asset types including "equity". As of the reporter's deadline, there have been 53 intenders who have signed up.
On August 4th evening, Héchuán New Energy & Motor Co., Ltd.'s management person released a public notice stating that intended investors should submit their application materials by September 15th at 5:00 pm (with the timestamp of the postal stamp serving as the deadline) and send electronic versions to designated email addresses, while paying a registration fee of RMB 5 million.
This public notice also specifies that the reorganization process will include application, preliminary screening, due diligence investigation, submission of reorganization plans, establishment of an evaluation committee, selection, and signing of a reorganization agreement. After the final reorganization investor is determined, they must sign the relevant "Reorganization Agreement" within three working days.
Three-Year Loss Exceeds RMB 180 Billion, "Revival" Still Possible?
As one of the earliest car startups in China, Which Car had a year-end sales volume of approximately 152,100 vehicles in 2022 and topped the list of new-energy car manufacturers, becoming a dark horse in the Chinese auto industry. However, in 2023, the company's sales plummeted, and from 2024 onwards, it began to experience operational issues.
According to publicly available information, as of the end of 2023, Which Car had short-term loans totaling RMB 43.17 billion, but its cash reserves had decreased to RMB 28.37 billion, making it difficult to cover the loan amount.
In a prospectus submitted to the Hong Kong Stock Exchange on June 26th last year, Which Car reported that it suffered losses of approximately RMB 48.4 billion, RMB 66.66 billion, and RMB 68.67 billion in 2021-2023, respectively, resulting in cumulative losses exceeding RMB 180 billion.
"Which Car has been living on the edge of bankruptcy for years. With a decade-long history, we've experienced countless dark moments." Wang Yunbo, chairman and CEO of Which Car, once said publicly.
According to the public notice issued by Héchuán New Energy & Motor Co., Ltd., Which Car began to suspend production in November 2024, but its production line equipment is still running normally, with over 400 employees retained, including management team members and core technical personnel, all of whom are ready for continued production.
Regarding the qualifications of intended investors participating in this recruitment, Héchuán New Energy & Motor Co., Ltd.'s management person has made three demands: main body qualification, industry background, and financial capability. For example, financial capability requires that intended investors have sufficient funds, are not burdened with significant debts due for settlement, and the source of their investment is legal and compliant.
Shen Meng, executive director of Xiang Song Capital, said in an interview with reporters that the current Chinese new-energy car market is highly competitive, making it difficult for each company to survive. Finding suitable investors is not easy.
However, Li Dongshu, secretary-general of Junlian Association, believes that Which Car still has opportunities for revival. "Which Car's problems may have stemmed from marketing and other aspects, but it has a solid foundation in production and manufacturing capabilities, as well as products that have undergone market verification. Given the current rapid growth in China's new-energy car industry, there is still room for development." Li Dongshu explained.