Another new force to build cars fell, and Changjiang Automobile entered bankruptcy liquidation procedures.

  "The administrator appointed by the court has been stationed in the company in mid-September. Now the company is managed by the administrator, and the shareholders and actual controllers stand aside. We just assist in the work." On November 1, Li Feng (pseudonym), a senior official of Hangzhou Changjiang Automobile Co., Ltd. (hereinafter referred to as "Changjiang Automobile"), told the First Financial Reporter on the phone.

  On September 29th, the bankruptcy documents issued by Yuhang District People’s Court in Hangzhou showed that on August 24th, 2020, Yuhang District People’s Court of Hangzhou ruled to accept the bankruptcy liquidation case of Changjiang Automobile Co., Ltd., and appointed Zhejiang Jingheng Law Firm, Zhejiang Noriya Law Firm and Ningbo Kexin Certified Public Accountants Co., Ltd. as the administrators of Hangzhou Changjiang Automobile Co., Ltd. on September 11th, 2020. The creditors of Hangzhou Changjiang Automobile Co., Ltd. shall declare their creditor’s rights to the administrator and provide relevant evidential materials before November 11, 2020.

  "The manager’s direction is to restructure, reduce the burden, introduce funds, restart production and sales, and some investors are in contact. At present, there is progress but uncertainty." Li Feng said.

  According to the data, the predecessor of Changjiang Automobile was Hangzhou Bus Factory, which was established in 1954, and the latter stopped production in the late 1990s. In 2015, Hong Kong Wulong Electric Vehicle Group reorganized it and established Changjiang Automobile, which mainly produces pure electric CMB, light and medium-sized commercial buses and SUV series products. The first-phase design capacity is 100,000 vehicles per year.

  According to the planning of Changjiang Automobile, its business will initially focus on the field of new energy commercial vehicles, and in the future, after obtaining the production qualification of new energy passenger cars, it will produce A00-class and A0-class pure electric SUVs, etc., and make efforts in the passenger car market. In 2017, Changjiang Automobile obtained the production qualification of pure electric passenger cars and became a member of the new energy car-making boom.

  Li Feng said that the plight of Changjiang Automobile began in the second half of 2018. With the decline of state subsidies and the decline of market demand, the company began to have the problem of tight liquidity. "By 2019, with the further contraction of the market, the funds are getting tighter and tighter, and the days are getting harder and harder."

  He introduced that because the products are out of touch with the market demand, the sales volume of Changjiang Automobile has always been low. Last year, the sales volume of the company’s electric buses and buses was around 1,000. Since the second half of last year, Changjiang Automobile has substantially stopped production and started to default on employees’ wages. Before the Lunar New Year in January this year, the company only paid three months’ wages and still owed five months’ wages. Due to the exhaustion of company funds, the American order contract signed at the end of last year was unable to organize production. By October this year, Changjiang Automobile had been in arrears with employees’ salaries for 12 months.

  It is worth mentioning that, with the enthusiasm of the capital market, hundreds of new power companies have been born in China. With the differentiation of performance, a large number of new car-making companies have "fallen down", and the attitude of the capital market towards the new car-making forces is also changing. Since last year, many new car-making companies have reported unpaid wages and debts, including Bojun Automobile, Baiteng Automobile and Sailin Automobile.

  Wu Qiang (a pseudonym), a partner of an investment institution in Beijing, told the First Financial Reporter that it is almost difficult for enterprises that have not yet rolled off the production line or formed large-scale production to get financing, and investors’ money will be concentrated in the head enterprises, and the prospects of the new car-making forces with poor performance are not optimistic.