Where is Huang Jihong, a giant and zotye eater？

　　[car home Industry] One year after the bankruptcy reorganization, who will take over Zotye’s boots finally landed, and Jiangsu Shenshang became a reorganization investor.

　　On the evening of October 8, Zotye Automobile announced that Jiangsu Shenshang Holding Group Co., Ltd. (hereinafter referred to as "Jiangsu Shenshang") was finally determined as the company’s restructuring investor according to the results of the review and voting on September 30. The announcement shows that the investment for this reorganization is 2 billion yuan, which needs to be paid before October 25.

　　It is understood that Jiangsu Shenshang’s main business is finance and real estate. It was established in September 2020 and is 100% controlled by Shenzhen Shenshang Holding Group Co., Ltd. (hereinafter referred to as "Shenshang Holdings"). In 2019, its legal representative, Huang Jihong, as the chairman of Shenshang Holdings, was in charge of the reorganization of a huge group of listed companies of automobile dealers. Subsequently, Pang Qinghua, the huge founder, transferred his equity and withdrew, and Huang Jihong became the actual controller of the huge group.

　　The name Huang Jihong is a little strange in the automobile circle, but he is famous for riding the capital market for many years. Some creditors described him as "extremely experienced in balancing the interests of enterprises, shareholders and creditors."

　　This is true. Two years ago, a huge group that once became the first IPO of automobile distribution, because of the deep debt crisis, went to the critical point of delisting. Under the reorganization of Huang Jihong, the huge group took off its hat in May last year, and *ST became a huge group.

　　Will such a miracle happen to Zotye again?

Professional trader

　　Huang Jihong, who are you? His public information is very few, and the information checked by the enterprise shows that he graduated from the Automobile Management College of China People’s Liberation Army. He used to be the chairman of Guangdong Zhongqi Leasing Co., Ltd., and now he is the president of Shenzhen Shenshang Holding Group Co., Ltd., the vice president of Shenzhen Smart Transportation Industry Promotion Association, and the special consultant of China Car Networking Enterprise Leaders Club. In addition, Huang Jihong is the chairman of a huge group.

　　According to the enterprise investigation information, Huang Jihong has 36 enterprises, 26 of which are legal representatives, and 72 of which he directly or indirectly controls. These enterprises cover real estate, transportation, wholesale and retail, manufacturing and leasing. Shenshang Holdings behind Huang Jihong has the same extensive business scope. It is jointly invested and established by 79 private enterprises in Shenzhen, mainly engaged in financial services, large-scale project investment and high-tech development and production.

　　Combing the investment information, we can find that, as the president of Shenshang Holdings, Huang Jihong himself is closely related to automobiles. Among the 72 enterprises directly or indirectly controlled by Huang Jihong, the vast majority are transportation companies that provide car rental and road passenger transport services, and there are also four enterprises whose main businesses cover the research and development of new energy vehicle technology, intelligent networking and car networking.

　　Just recently, Huang Jihong gained another identity as "fire fighting captain" and was elected as the president of China Minsheng Investment Co., Ltd. (hereinafter referred to as "China Minsheng Investment").

　　Founded in 2014, China Minsheng Investment Co., Ltd. was established by 59 private enterprises led by Dong Wenbiao, former chairman of Minsheng Bank, with a registered capital of 50 billion yuan, and is known as a giant ship of private enterprises. In the past few years, China Minsheng Investment Co., Ltd., which focuses on investment, has bet that many excess capacity will become "debt-trapped beasts". According to people familiar with the matter, Huang Jihong stands out because he has practical experience in restructuring. At present, the root causes of the problems of China Minsheng Investment Corporation are very similar to those of the huge group earlier, both of which focus on capital operation and blind expansion, causing enterprises to fall into debt crisis.

　　In 2019, the consortium composed of Shenshang Holdings, National Transportation and Yuanwei Assets brought 1.7 billion yuan in blood transfusion for the huge reorganization. *ST Giant picked the stars in January 2020 and changed to ST Giant. In August of the same year, the actual controller of the huge group was also changed from Pang Qinghua to Huang Jihong. In May this year, the abbreviation of securities of Huge Group was changed from "ST Huge" to "Huge Group", which successfully achieved "removing stars and removing hats".

　　After the huge takeover, Shenshang Holdings no longer concealed its ambition to enter the automobile industry. In June last year, Shenshang Holdings, together with Changchun Automobile Development Zone, China Construction Bank Jilin Branch and Changfa Group, jointly launched the Red Flag Industrial Development Fund of 60 billion yuan. Zhang Simin, chairman of Shenshang Holdings, said in his speech, "The automobile transportation industry is an important development direction of Shenshang Holding Group in recent years. Shenshang Group is committed to promoting the high-quality development of the domestic automobile industry through the acquisition, reorganization, reorganization of auto parts and circulation operation enterprises and in-depth cooperation with industrial chain enterprises."

"Shenshang Holdings and FAW Hongqi signed a strategic cooperation agreement"

　　As can be seen from Zhang Simin’s words, at that time, the manufacturing enterprise was the only one in the automobile map controlled by Shenshang.

Hematopoietic capacity is still in doubt

　　Since Shenshang Holdings and Huang Jihong entered the huge group, their performance has gradually improved, which is the most intuitive reflected in the financial report data. According to the semi-annual report of Huge Group in 2021, the revenue in the first half of this year was 14.663 billion yuan, an increase of 33.96% compared with the same period of last year, and the net profit attributable to shareholders of listed companies was 582 million yuan, an increase of 12.13%.

　　How did Huang Jihong pull the huge group back from the line of life and death? Generally speaking, when an enterprise encounters bankruptcy and reorganization, it is nothing more than common "routines" such as layoffs, downsizing and selling assets. Since the announcement of bankruptcy and reorganization, Huge Auto has issued many announcements in 2018-2020, in order to obtain cash benefits by transferring the company’s assets, including selling 4S stores and disposing of commercial land owned by huge groups.

　　This series of operations enabled the huge group to turn losses into profits in fiscal year 2020. In 2020, the huge group’s net profit attributable to shareholders of listed companies was 580 million yuan, and the non-recurring net profit attributable to shareholders of listed companies was 187 million yuan. Prior to this, the huge group had been losing money for three years in a row.　

　　However, the growth of revenue and profit cannot hide the lack of growth of its main business. The 2021 semi-annual report of Huge Group showed that its net profit was RMB 580 million, a 12-fold increase, but the non-net profit attributable to shareholders of listed companies still lost RMB 116 million, compared with RMB 159 million in the same period last year. The deduction of non-net profit has not turned positive, indicating that the main business of the huge group still faces great resistance.

　　The content of the financial report shows that in the first half of this year, the profit and loss of the disposal of non-current assets of the huge group reached 708 million yuan. In addition, the huge group disposed of the assets or equity of some subsidiaries. Among them, the amount of assets disposed of was 24.8488 million yuan, and the amount of net assets of equity sold was 251 million yuan. As an automobile dealer group focusing on new car sales and after-sales service, the improvement of the huge group’s financial performance comes more from the disposal of assets.

　　Combing the public data, it is found that before 2018, the huge group had about 700 outlets all over the country. After a series of equity transfer, that is, selling stores to renew their lives, by the end of 2019, the number of outlets of the huge group was reduced to more than 400. According to the data of the semi-annual report, as of June 30, 2021, the company has 317 distribution stores. Among them, there are 41 luxury brand 4S stores and 220 high-end brand 4S stores.

　　In addition to the shrinking number of outlets, the ranking of the huge group among the top 100 dealers is barely among the top 20, from the fifth in 2018 to the nineteenth in 2020. The hematopoietic capacity of the huge group after Huang Jihong’s takeover is still in doubt.

Come for Zotye?

　　Selling assets for profit is not a long-term solution. During the Shanghai Auto Show in April this year, Huang Jiyong, an investor representative of the huge group, said that the huge group is deepening its participation in the new energy vehicle market and thinking about the transformation of new energy. In the financial report in 2020, the huge group also mentioned that it will start from three business lines: passenger cars, new energy vehicles and urban traffic electrification in the future. Two of the three business lines are related to new energy.

　　However, the actual performance of the new energy sector is not satisfactory. Huge Group pointed out in its semi-annual report that "the company’s current distribution of new energy vehicles accounts for a relatively low proportion, which may lead to the risk of temporarily slowing down the market in the new energy market segment."

　　Want to seize the new energy trend, in addition to the huge group and Huang Jihong. On September 23 last year, Zotye Automobile announced that it would openly recruit investors from the society. Six days later, on September 29th, Jiangsu Shenshang completed its registration, and has not carried out substantive business since its establishment.

　　It is worth noting that the announcement also pointed out that Shanghai Taiqi Automobile Technology Partnership and Hunan Zhibo Zhiche Equity Investment Partnership are the company’s back-ranking alternative restructuring investors. After the dialysis of stock rights, these two enterprises are inextricably linked with Weimar and Geely respectively.

　　Some analysts said that although Zotye Automobile has been "wearing a hat" and its brand image and technical strength are hard to describe, it has dual production qualifications for fuel vehicles and new energy vehicles, A-share listed shell resources and multiple production bases across the country. In view of the current development trend of new energy vehicles and the closure of the qualification door for new energy vehicles, it is not impossible for Huang Jihong to win a wave of dividends by opening up the links of automobile manufacturing and sales. Zotye’s announcement also clearly pointed out that the purpose of Shenshang’s participation in restructuring is to obtain production qualifications and produce and sell complete vehicles.

　　Since the beginning of this year, Zotye’s stock has experienced dozens of daily limit under the stimulation of the latest news of bankruptcy and restructuring from time to time. In ten months, Zotye’s share price rose from 1.14 yuan in January to around 7 yuan, with an increase of more than 7 times during the year and a market value of more than 10 billion yuan. Some investors ridiculed and missed Zotye’s stock, just like losing a car.

　　For Zotye, this seems to be much faster than making money honestly. This kind of "monster stock" that seriously deviates from the performance fundamentals has made *ST Zhongtai repeatedly eat inquiries and warning letters from the Shenzhen Stock Exchange, and even be questioned to manipulate the stock price. A former dealer of Zotye Automobile was impressed when he learned that the Shenzhen Business Department would take over Zotye. "Everyone who enters the market wants to make a fortune, but no one cares about how to deal with the dealer’s mess."

　　It is understood that since Zotye’s thunder in 2019, the farce caused by dealers’ default by Zotye has been staged frequently. It is reported that Zhejiang Zhongtai Automobile Sales Co., Ltd., a subsidiary of Guangzhongtai, has 573 dealers/individuals, with a total amount exceeding 4.7 billion yuan. With Zhejiang Zhongtai Automobile Sales Co., Ltd. being ruled bankrupt and liquidated by the local court, dealers are likely to face the end of losing all their money.

"In 2019, Zotye dealers" debt collection tide "appeared in many places across the country"

　　The 2 billion yuan of Shenshang Holdings may enable Zotye to restart, but it is still unknown who will handle the bad debts left to dealers. Liu Ming (a pseudonym), a securities analyst, revealed that enterprises like Zotye, which can’t be called high-quality assets, only have capital to come to the rescue if there is no industrial takeover. "The task at this stage is to make Zotye Auto realize’ taking off its hat’ and the stock will circulate normally in the capital market. In the later stage of restructuring, it is not ruled out that new investors will enter the market. "

　　In less than two years, Shenzhen Commercial Capital, which made the huge group take off its hat, is also likely to make the "miracle" appear again in Zotye Automobile.

　　Capital always has a strong policy sensitivity. When new energy vehicles rise to the national strategy, Internet, home appliances, real estate, communications and other enterprises have joined the upsurge of cross-border car-making. However, running a car company is not the same as capital operation, and not every expensive investment can splash.

　　As early as 2003, Wuliangye, which had been thinking about making cars, announced in 2017 that it would spend 2.494 billion yuan to buy 51% of Chery’s Kaiyi Automobile, and throw 3.7 billion yuan to build Kaiyi Yibin Smart Factory. And this story of building a car, which has been planned for more than ten years, ended in selling hundreds of cars a month in just a few years. Dong Mingzhu, who also failed to return, ignored Gree shareholders’ opposition to investing in Yinlong Bus. Since 2017, Yinlong has always been difficult to make a profit. Even Dong Mingzhu, who has always been "stubborn", said at the shareholders’ meeting in August this year, "I personally lost a lot, and I borrowed more than 2 billion yuan by borrowing money. I can’t see the future and dare not think about it. "

　　Cross-border car-making is also a narrow escape for wealthy real estate developers Baoneng and Evergrande. They all enter the stadium with abundant confidence and funds, but it is difficult to get rid of the present situation of chicken feathers in one place.

　　Huang Jihong may not care too much about whether the Shenzhen Business Department can bring Zotye back to life. As Liu Ming said, for a deep business department with a big family, cars are only a part of his business map, not the whole. For Zotye Auto, Shenshang Holdings is not necessarily its ultimate destination. In the past seventeen years, Zotye has become a tool for the Ying family to collect money in the era of fuel vehicles. After the new trader enters the game, I wonder if the fate of Zotye Automobile can be rewritten in the new era. (Wen car home Zhang Lingxiao)