Electric Zhijia news, according to insiders, recently, Rongshengmeng Guli, a once-famous power battery company, sent an "Communication of Understanding on the Payment of Salary of Rongshengmeng Guli New Energy Technology Co., Ltd." to employees and asked employees to sign the communication. The content of the communication Circular shows that in view of the company's current funding problems, the payment of performance bonuses and overtime pay for October, November and December 2021 will be temporarily suspended.
Communication Circular stated that after research and decision by the company's executive committee and review by the company's trade union committee, an understanding agreement was reached on the issues of monthly wages, monthly performance bonuses and monthly overtime pay that were not paid in 2021 as follows:
1. The payment of performance bonuses and overtime pay for October, November and December 2021 will be temporarily suspended, and ensure that the remaining monthly wages for the above months are paid in full before January 29 to ensure that the majority of employees should pay in full to ensure the living needs of the majority of employees.
2. The company is actively raising funds to solve the problems of performance bonuses and overtime pay. If the monthly performance bonuses and overtime pay for 2021 that are not fully paid before the Spring Festival in 2022 will be calculated at an annualized interest rate of 6% from the payday that is due in that month (i.e., on the 15th of each month), and will be paid at the time of reissue.
3. The performance bonuses and overtime pay not issued in 2021, including the monthly performance bonuses in August 2021, will be reissued in the first quarter of 2022.
According to Electric Zhijia, Rongshengmeng Guli New Energy Co., Ltd. has started to owe employees' wages since July 2021, and the provident fund has also been suspended. When employees asked the company for money many times, they paid the basic salary in August. Currently, the salary in October, November and December 2021 has not been paid. Some company employees said that at the end of the year, the company not only did not pay employees' wages, but also issued a so-called letter of understanding for everyone to sign, but did not want everyone to go to arbitration and take legal means. Some employees said, "House loans are borrowed now, and they don't have money to celebrate the New Year."
According to some employees' feedback, only half of the year-end bonus in 2020 was given, and the rest has not been paid yet. There are also employees who have been resigning for three months and the advance payment of their wages are not paid normally. According to insiders, the company's current salary structure is basically 30% to 50% of the performance salary, and 50% to 70% is the basic salary. According to the plan of the letter of understanding, after deducting five insurances and one fund, 22% of the five funds and taxes, employees receive only about 40% of the monthly salary.
Electric Zhijia found that as early as the end of April 2021, an employee reported on the People's Daily message board that "Tianjin Rongshengmeng Guli New Energy Technology Co., Ltd.'s wage arrears" was not paid on time in March, which should have been paid before April 15. The Tianjin Baodi District Letters and Visits Office replied that the District Human Resources and Social Security Bureau promptly issued a notice to Tianjin Rongshengmeng Guli New Energy Technology Co., Ltd., ordering the employer to pay labor remuneration strictly in accordance with the time stipulated in the labor contract to avoid such incidents from happening again.
There are also other posts online that feedback Mengguli has not paid wages on time.
According to Electric Zhijia, Rongsheng Mengguli New Energy Technology Co., Ltd. (hereinafter referred to as "Mengguli" and MGL), was established in 2002 with a registered capital of 485 million yuan and currently has more than 2,000 employees. It is headquartered in Changping Park, Zhongguancun Science and Technology Park, Beijing. The production and manufacturing bases include Tianjin Manufacturing Base, Nanjing Manufacturing Base, Guangxi Manufacturing Base, Chongqing Manufacturing Base, etc. The company is a national high-tech enterprise specializing in the research and development and industrialization of key materials for lithium-ion power batteries for new energy vehicles, lithium-ion batteries for energy storage and lithium-ion batteries. Public information shows that Rongshengmeng Guli focuses on soft-pack laminated power batteries, and its technical route is mainly lithium manganese oxide and ternary batteries, and the market is concentrated in the commercial vehicle field. In the first half of 2017, Rongshengmeng Guli's domestic PHEV commercial vehicle power battery market share exceeded 50%.
Initially, Rongshengmeng Guli was controlled by CITIC Guoan (000839.SZ), whose name is CITIC Guoan Guli Power Technology Co., Ltd.When new energy vehicles emerged in 2015, CITIC Guoan acquired 100% of the equity of CITIC Guoan Muli Power Technology Co., Ltd. (Rongshengmeng Guli formerly used name) and entered the power battery for 150 million yuan. At that time, Mengguli did bring new growth points to CITIC Guoan's performance. In 2016, Mengguli's net profit was 162 million yuan and 154 million yuan in turn, and its net profit contribution accounted for 70% of CITIC Guoan's net profit that year. Due to the debt crisis in 2018, CITIC Guoan considered selling the asset and Rongsheng Group, which is seeking to transform into diversified products, took over it in batches. In August 2018, Rongsheng Holdings first acquired 34% of the shares of Mengguli Power for a price of 2.322 billion yuan, and through a capital increase of 2.4 billion yuan, it achieved a 51.16% shareholding in Mengguli Power, becoming the company's controlling shareholder. In 2019, Mengguli Power was renamed Rongsheng Mengguli New Energy Technology Co., Ltd.
On July 28, 2020, CITIC Guoan announced that it plans to transfer 22.61% of the equity of Rongshengmeng Guli New Energy Technology Co., Ltd. (hereinafter referred to as "Rongshengmeng Guli") held by the company to Rongsheng Holdings. After the transaction is completed, CITIC Guoan will no longer hold shares in Rongshengmeng Guli. At this point, CITIC Guoan has officially withdrawn from its power battery business.
Rongsheng first made his fortune in real estate. It was founded by Geng Jianming in 1996. On August 8, 2007, the company landed on the Shenzhen Stock Exchange, becoming the first real estate company in Hebei Province through IPO. For a long time, Rongsheng Development has been mainly engaged in the "Beijing-Tianjin-Hebei Urban Agglomeration", so it has the title of "King of Hebei" in the real estate industry. In recent years, with the regulation of real estate policies, Rongsheng Development's financial situation has begun to decline.
According to media reports, two US dollar bonds with a scale of US$800 million are about to expire. The company is facing liquidity risks, and the two rating agencies lowered Rongsheng Development's credit rating. Recently, according to the 21st Century Business Herald, in order to avoid bond defaults, the company has made a promise to provide a 5.4 billion yuan asset package. At the same time, according to media reports, its holding company is also considering selling battery subsidiaries to alleviate cash flow pressure.
