Financing difficulties encountered by "pay for wages" know beans car encounter "life and death robbery"?


Financing difficulties encountered by

Author: Chen Maoli quartz Jing source: China business network

With Zhidou debt, layoffs, Department relocation and other incidents fermentation, Zhidou Electric Vehicle Co., Ltd. (hereinafter referred to as "Zhidou") the "capital chain tension" rumor has become the focus of attention in the industry. Recently, Zhidou as the representative of the production of mini-electric cars mainly car manufacturers have seen a substantial decline in sales.

According to the data released by the Federation, sales of only 374 Zhidou vehicles in August were 92.5% lower than the 5,018 vehicles in the same period last year, and 13,497 vehicles were sold in January and August, a 51% drop from the same period last year.

Coincidentally, Zhejiang Kangdi Electric Vehicle Co., Ltd. (hereinafter referred to as "Zhejiang Kangdi") also witnessed a substantial decline in sales.

In response to declining sales, Chi-Dou Brand Director told China Business Daily that the company is upgrading its products. Its models will be upgraded to a range of more than 255 km with a range of 180 km. In the product upgrade stage, there is no need for a similar production and marketing enterprise like ours to be like a traditional automobile. Like a car, it will not yield temporarily. "

Sales decline sharply, profitability is difficult

Last year, know beans achieved good results in annual sales of 42 thousand and 400 vehicles. At that time, Bowen Guang, then president of Zhidou Automobile, said in an interview with the media, "Now the break-even point of the enterprise should be 560,000 vehicles, next year (2018) will certainly be profitable."

However, Zhidou failed to continue its good results in 2017 in 2018. According to the data released by the Riding Federation, sales of Zhidou were only 374 in August, down 92.5% from 5,018 in the same period last year, and 13,397 in January-August, a 51% drop from the same period last year.

Among them, the expected D3 sales have been falling since the listing, with sales in July even in single digits; only 29 vehicles were sold in August and 372 in January-August.

From the current sales point of view, to achieve sales of 50,000 to 60,000 vehicles in 2018, and then to achieve profitability is not small difficulty.

It is noteworthy that companies with large sales slumping are not the ones that know beans. In August, Zhejiang conti sold 263 vehicles. Dongfeng Yueda KIA's Huaqi 300E5 sales volume was 170, and sales volume in 6~7 month was 1, 14 and 2 respectively.

From the perspective of the whole automobile market, since the implementation of the new subsidy policy on June 12, 2018, the state has increased the demand for "battery energy density" and "endurance mileage" of new energy vehicles, and the sales of micro-electric vehicles fell sharply in June.

Sales of mini (AOO class) pure electric passenger vehicles were 16.7 million in June 2018, down 63% from 45,000 in May, according to the Federation. In August, 22 thousand and 100 sales of mini electric vehicles increased by 28%, the trend of warming up was obvious. But it fell by 20% compared to the same period last year, accounting for 38% of the pure electric vehicle market.

In fact, the sales and profits of several new energy automobile enterprises, such as Jianghuai and Beiqi, have been affected. Among them, last year's electric car sales champion Beiqi EC series, sales reached 78,000 last year, this May, EC series also sold 12,600, but by June, only three.

In addition, with the increase of the subsidy threshold, such enterprises also face "cost pressure" and "profit pressure".

Take Zhidou D2 as an example. In 2017, it will receive a subsidy of 36,000 yuan from the state. After the implementation of the new policy, it will receive only 16,500 yuan.

Temporary operational difficulties?

The sales volume is cut short and the profit remains to be tested. At this stage, know beans are under multiple pressures. Zhi bean brand director told reporters that the company encountered temporary operating difficulties (financial difficulties).

And the pressure from the market is also transmitted to the employees inside the company. In mid-August, employees of Zhidou Zhixin Technology Co., Ltd. (hereinafter referred to as "Zhidou Zhixin") reported that they had not received any salary for three months since May. More than 80 employees had similar experience with him. In the case of wages have not been obtained, and received the Beijing Office (Zhidou Beijing Office) to evacuate to Zhidou headquarters Ninghai news.

"Either report to headquarters or leave on their own initiative." On August 2, Zhidou Zhixin employees received the news of evacuation and relocation from Beijing office in the internal Weixin group. "We solemnly inform you that we have just received a notice from the headquarters this morning, and finally decided to cancel the Beijing office. The rent is up to the end of August. After leaving the office, the 7~10 paid the full amount of wages owed to the salary card.

It is reported that Zhidou Zhixin, registered in December 2014, is a wholly-owned subsidiary of Zhidou Electric Vehicle Co., Ltd. (hereinafter referred to as "Zhidou"), a new energy vehicle company, which is mainly responsible for the research and development of Zhidou in the field of vehicle networking.

Aug. 27, the reporter learned in an interview on the ground, for wage arrears, "disguised" layoffs and the relocation of research and development centers, staff sentiment is more intense. Zhidou Zhixin used to have more than 200 employees, but since the company began to delay the payment of wages and wage arrears, some employees have been leaving their jobs. The employees who insisted on it were neither compensated nor paid.

In the September 12 interview, Zhidou Brand Director told reporters that the company encountered temporary operating difficulties, but now has completed the payment of workers'wages. "In fact, only a month's wage arrears, because the state subsidy originally said a time point in place, but later delayed."

She says the more cars are sold, the more money is invested, in the context of longer cycles of state and local subsidies for new energy vehicles. "In fact, we are equivalent to placing national subsidies and local subsidies to consumers in advance."

As for the relocation of the R&D department, the above brand director said that the relocation of the headquarters is also based on the cooperation with Geely in R&D, communication with Geely in the Hangzhou Bay side will be more convenient, based on this situation, the company makes business adjustment and relocation. But in the industry view, relocation is related to the company's current financial difficulties.

Losses for 12 consecutive years

Behind this "temporary operational difficulty" is the loss for 12 consecutive years.

Reporters combing found that since 2005 entered the electric vehicle industry, know beans for 12 consecutive years of losses. Over the past 12 years, Zhidou has been supporting the R&D and production of electric vehicles mainly through its parent company, New Ocean Electrical and Mechanical Group (hereinafter referred to as "New Ocean") component business. In the words of Bao Wenguang, former president of Zhidou, it is "raising elephants with lambs".

Looking back, Bao Wenguang once described in 20 words: ignorance, knowledge, anxiety, export, return, black household, third, second marriage, independent qualifications. It is reported that Zhidou predecessor Xin Dayang mainly develops automobiles, motorcycle accessories molds, production of electric bicycles and research and development of brushless motors and controllers. In 2005, due to the high technology content of electric vehicles, is an innovative product, Bao Wenguang led his team into the electric vehicle industry. It took nearly 7 years to develop the new car.

However, due to the limited awareness of electric vehicles at the national level at that time, Zhidou faced the problem of not being able to sell in China. In the case of heavy investment and the survival of the company, know beans choose the way to export. In 2012, the "know beans" electric vehicle passed the European Union E-MARK standard certification, the first batch of offline cars exported to Europe.

In 2014, Zhidou hitchhiked Zhongtai to produce and sell electric vehicles in China with the help of its production qualifications, and tapped into the sub-market with mileage less than 100 km. In that year, Zhidou's annual sales rose to 7400 vehicles. But in the follow-up cooperation, because of the differences between the two sides, know beans and Zhongtai "break up".

In 2015, Zhidou successfully joined hands with Geely Holding Group (hereinafter referred to as "Geely"). In January of that year, Geely, New Ocean and Jinshajiang Venture Capital Fund jointly established Zhidou Electric Vehicle Co., Ltd. with a 45% stake in Geely becoming the largest shareholder. After the establishment of the company, Zhidou quickly launched Zhidou D1, D2 and other electric vehicles, the first year of cooperation Geely Zhidou sales of more than 30,000 vehicles, a leap to become the highest single car sales of pure domestic electric passenger cars in 2015.

However, only one year in love, Geely decided to reduce the stake in know beans. Geely said that according to the National Development and Reform Commission's automobile industry policy requirements, the entire vehicle production enterprises already registered can not apply for electric vehicle announcement alone. As the company is a registered vehicle enterprise, and is the controlling shareholder of Zhidou, so Zhidou Electric Vehicle can not apply for a separate national announcement. In order to solve this problem, we are willing to reduce the stock of know beans. Almost a year after breaking up, in October 2017, Zhi bean officially received the new energy production qualification approved by the Ministry of industry.

In fact, this is not surprising. In addition to the funding constraints caused by delayed state subsidies, Zhidou is also facing upgrades in its vehicle range and battery energy density, research on smart vehicle systems, vehicle networking technology, and European time-sharing leasing business layout.

But the reality is sustained losses and difficulties in financing delays. Reporters concerned that Zhidou B round plan to raise 2 billion yuan, but after last year's multi-fluoride strategic stake, the original plan to complete the B round of financing by the end of 2017 on no news. In the interview, the above brand directors avoided about the B round of financing, but frankly to Bao Wenguang as the leader of the founding shareholders with the original accumulation of funds to maintain business is really hard. Bao Wenguang also said, "it has been very hard to have been raised for so many years".

It is worth noting that deep in debt turmoil, the news that Zhidou wants to seek Geely's capital increase again, the above brand director told reporters, there is no exact capital increase news, you can ask Geely. Reporters to the Geely side to verify, the group's public relations communication department responsible person said, "official news prevails."


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