Reporter of the Business Journal: Pei Jianru Reporter of the Business Journal: Sun Lei
" NAZIJI , only a few gas stations per 100 kilometers (fuel consumption)."
"NazIJI, Sinopec , strategic partner of CNZIJI."
"Only those who drive NAZIJI are the real rich people."
"I heard that this car is immortal, this car will never be full of fuel."
"Why do China need sidewalks? In order to ensure that owners of NazIJI can walk home."
...
mentioned "oil tiger" NazIJI, and jokes about the high fuel consumption and low value retention rate of this "magic car" are still flying. What is interesting is that for the Dongfeng Yulong Automobile Co., Ltd. (hereinafter referred to as Dongfeng Yulong), behind Nazhijie, it is not only the products that have been criticized, but the company is also facing the dilemma of bankruptcy and reorganization.
A few days ago, a reporter from " Daily Economic News " learned that Dongfeng Yulon manager issued an investment promotion announcement, conducting public investment promotion in accordance with the relevant provisions of reorganization procedure , and listed 7 basic requirements for prospective investors, including "the main business direction of investment projects is the research and development, production and sales of new energy vehicle " and "two or more investors can jointly participate in the investment, but at least one investor must meet the above conditions."
Image source: Dongfeng Yulong official website
"Now the investors we are considering recruiting are mainly car companies. Dongfeng Yulong's restructuring is a judicial restructuring. According to the restructuring requirements, car companies need to enter." Recently, a relevant investment promotion person in charge of Dongfeng Yulong said in an interview with a reporter.
It is reported that on April 29 this year, the Hangzhou Intermediate People's Court of Zhejiang Province (hereinafter referred to as the Hangzhou Intermediate People's Court) ruled to accept the bankruptcy reorganization application filed by Dongfeng Yulong; on May 7 this year, the Hangzhou Intermediate People's Court designated Zhejiang Liuhe Law Firm as the administrator of Dongfeng Yulong Company.
"Now we are mainly recruiting prospective investors. If the progress goes well, the restructuring work is expected to be completed by the end of October, and it may be postponed by 3 months to January next year. Because according to relevant laws, the general term for bankruptcy restructuring is '6+3' months. However, considering that it may be affected by the epidemic and other related factors, this time is not very certain." Recently, the manager of Dongfeng Yulon said in an interview with a reporter.
Want to recruit car companies to reorganize
According to the "Dongfeng Yulong Automobile Co., Ltd. Investment Announcement" (hereinafter referred to as the "Announcement") obtained by the reporter, the basic requirements of Dongfeng Yulong managers for intended investors include 7 items, namely, they have a high sense of social responsibility and good commercial reputation, and have not been included in the list of dishonest by the People's Court or have taken measures to restrict high consumption; they are in line with the National Development and Reform Commission's Order No. 22 of 2018 " Automobile Industry Investment Management Regulations " for investment in vehicle investment projects Subject qualification requirements; Have product design and development capabilities, production capacity, production consistency guarantee capabilities, and after-sales service guarantee capabilities that are suitable for investment projects; have sufficient financial strength to invest to ensure the sustainable development of the project, and the source of funds is legal and compliant; the investment projects are mainly based on the research and development, production and sales of new energy vehicles; two or more investors can jointly participate in the investment, but at least one investor must meet the above conditions; please contact the investor to confirm with the local government departments on their own regarding matters related to industrial access, investment intensity, , industrial policies, etc.
"Our main recruitment targets are car companies. Even if investors from other industries are willing to come in, they still need to recruit a car company as the main body. After the car company enters, they can import their own products." The above-mentioned relevant investment promotion person in charge of Dongfeng Yulon told reporters.
This is also consistent with the above basic requirements of the "compliant with the requirements of the investment entity qualifications of the "Regulations on the Investment Management of the Automobile Industry" of the National Development and Reform Commission for the "Regulations on the Investment Management of the Automobile Industry"" and "having product design and development capabilities, production capacity, production consistency guarantee capabilities, and after-sales service guarantee capabilities that are compatible with the investment projects", and "investment projects are based on the research and development, production and sales of new energy vehicles as the main direction".
It is worth mentioning that the reporter learned that the specific procedures and methods for disposing of Dongfeng Yulon assets and recruitment of investors have not been determined yet. The manager will make a comprehensive determination based on the contact with the intended investors and the specific project situation.
According to the above-mentioned Dongfeng Yulon manager, if no suitable car company is determined in the end, the possibility of expanding the scope of investment promotion is not ruled out. "Our requirement for recruiting investors is car companies, but it is not ruled out that if we cannot recruit car companies, we will not retain the qualifications of car companies and then conduct public recruitment." The above-mentioned Dongfeng Yulong manager told reporters.
liabilities of 7 billion
The above-mentioned "Announcement" shows that Dongfeng Yulon's main assets include real estate such as land, factories, movable property such as vehicles and equipment, as well as long-term equity investment, external receivables, etc.
Among them, real estate includes No. 100 Jiayuan Road, Qiantang New District, Hangzhou City, No. 2688 and No. 2689 Century Avenue, Qiantang New District, Hangzhou City, Zhejiang Province, Linjiang Industrial Park, Qiantang New District, Hangzhou City, Zhejiang Province, and other industrial land use rights area is about 793,900 square meters.
Image source: "Dongfeng Yulong Automobile Co., Ltd. Investment Announcement"
It is worth noting that Dongfeng Yulong has the qualifications for traditional fuel and new energy production of passenger cars, has complete vehicle verification capabilities, and has built a test runway, emission performance laboratory, regulatory power laboratory, vehicle VOC testing laboratory, vehicle garage room, new energy laboratory, new vehicle trial production workshop, three-coordinate room, etc. It has built six workshops, R&D centers and bonded warehouses, with an annual production capacity of 120,000 vehicles.
However, similar to all companies that are in a state of bankruptcy and reorganization, Dongfeng Yulon faces high debts. The reporter exclusively learned that as of now, Dongfeng Yulon's debt is about 7 billion yuan, and the valuation of its assets is not yet certain. You should know that in 2012, when it achieved profitability, Dongfeng Yulon's sales revenue was 6.485 billion yuan. This means that Dongfeng Yulon's debt has exceeded its sales revenue for one year.
Not only that, Qixinbao shows that in the six years from 2016 to 2021, Dongfeng Yulon quickly reduced its staff, and the number of social security personnel fell from 1,615 in 2016 to 509 in 2019. By 2021, Dongfeng Yulon had only 34 remaining social security personnel.
"The asset appraisal report does not actually affect our recruitment of investors, because ultimately it depends on the investor's own final investment based on the asset appraisal." The above-mentioned Dongfeng Yulong manager told reporters.
once created the "Internet celebrity car"
Public information shows that Dongfeng Yulong was established in October 2010 with a registered capital of approximately 3.544 billion yuan. It was formed by a joint venture between Dongfeng Motor and Yulong Auto at a 50:50 share ratio to produce models under the Nazhijie brand. In 2013, Dongfeng Motor and Yulon Automobile once again jointly established Dongfeng Yulon Sales Company with a ratio of 50:50 shares. Because of mastering the three key technologies of motor, electronic control, and battery energy storage in electric vehicle production, and passing the national "New Energy Production Access Review", Dongfeng Yulon was also selected as the "Zhejiang Province Pure Electric Vehicle Industry Technology Innovation Comprehensive Pilot Unit".
In 2011, Dongfeng Yulong's first product, , Nazhijieda7 SUV, was launched. At that time, it happened to be a period of explosive growth in the domestic SUV market. In addition, the Nazhijieda 7 had a high degree of electronicization and intelligence at that time, and once became a "Internet celebrity car". In 2012, Nazhijieda7 successfully ranked among the top ten domestic SUV markets that year. Dongfeng Yulong's cumulative sales reached about 31,100 units. increased by 350% year-on-year compared with . With a product, it achieved profitability in the second year of production, successfully opening up the situation.
Picture source: Nazhijie official website
Against this background, Dongfeng Yulon further expanded its product series, launched a variety of models such as MPVs and sedans, and even shouted the goal of "sales will reach more than 200,000 vehicles within five years, and sales revenue will reach 25 billion yuan." In 2015, Dongfeng Yulon's sales reached its peak, reaching about 60,300 vehicles. Nazhijie, who is in the limelight, also invited Jay Chou to serve as the brand spokesperson. This is also Jay Chou's first exclusive endorsement of a car brand. It is rumored that its endorsement fee is 13 million yuan.
However, Jay Chou's "king of the sky" effect did not make Nazhijie continue to soar. Just in 2015, Dongfeng Yulon had already suffered losses.Not only that, netizens' complaints about the quality problems such as the excessive fuel consumption of Nazhijie products, the damaged water tank during driving, the engine stalling, and the broken shaft have made it "black and red".
Although the fuel consumption of the Ministry of Industry and Information Technology of the Nazhijie Large 7 SUV is 8.9L/100km, car owners generally reported on the forum that the fuel consumption of this car in the urban working conditions is as high as 15L~18L/100km. At the same time, Dongfeng Yulon has also recorded a large-scale recall. In 2018, Dongfeng Yulon recalled a total of about 145,400 related cars in batches, involving models such as Nazigena 5 and U6. The reason is that the passenger airbags of the vehicle's co-pilot seat were equipped with an ammonium nitrate gas generator without desiccant produced by Takata Company. When the airbag is deployed, the gas generator may be abnormally damaged, causing debris to fly out and injure the personnel in the car, posing a safety hazard.
Since 2016, Dongfeng Yulon's sales have begun to enter a rapid decline. From 2016 to 2018, Dongfeng Yulon's sales were 40,500, 18,100 and 9,361 respectively. In 2018, the big 7 SUV, which once "had to queue up to mention the current car", was suspended, and the sales of this car had returned to zero in the first half of that year; by 2019, Dongfeng Yulon's sales were only 1,947 units, less than four percent of the peak; and in 2020, Dongfeng Yulon's annual sales were only 77 units. In the end, Dongfeng Yulong fell into a state of bankruptcy and reorganization.
In the view of Cui Dongshu, Secretary-General of the National Passenger Car Market Information Joint Conference, the reason why Dongfeng Yulong is heading for bankruptcy and reorganization is mainly because it does not have core technology and lacks quality awareness, so the product does not have competitive advantages.
"Nazhijie's products were actually niche brands during the period of their launch. They were famous in the early stages of their launch, but they did not continue to increase their efforts to research and development, and there were no new introductions to technology. The new models launched not only did not have real updates, but were equipped with lower configurations. In addition, they were overpromoted and unrealized, and there were many quality problems, which were gradually eliminated by the market." Zhang Xiang, analyst of the automotive industry, , and director of the New Energy Vehicle Technology Research Institute of Jiangxi New Energy Technology Vocational College, believed in an interview with reporters.
must seize the "window period"
From the investment information, new energy vehicle will become the main direction of Dongfeng Yulon in the future, but after the introduction of investors, it is still unknown whether Dongfeng Yulon's products and brands will be retained.
In fact, as early as 2019, Dongfeng Yulon proposed to increase the market investment of new energy products, but in the end the plan failed to be implemented, and the Nazhijie brand did not launch new energy models.
"Now, Dongfeng Yulon's utilization value is mainly concentrated in production qualifications and factories. In the future, we must take the path of new energy. But for R&D investment, funds are very important, and as much funds as possible are needed to support its subsequent development." Zhang Xiang told reporters.
But it should be noted that this is not the first time Dongfeng Yulong has recruited investors. Previously, Dongfeng Yulong, which is in the pre-restructuring stage, had twice looked for investors. But the time span is as long as 8 months, and Dongfeng Yulong has not yet found his own " White Knight ".
In the above "Announcement", Dongfeng Yulong manager believes that location and industrial supporting facilities are Dongfeng Yulong's more obvious advantages. In terms of location, Dongfeng Yulon is located in Qiantang New District, Hangzhou City, Zhejiang Province, located in the geographical center of the southern wing of the Yangtze River Delta, and has the prominent location characteristics of "Tonghu, Dayong, Lianjiashao". In terms of industrial supporting companies, Qiantang New District gathers more than 100 auto parts production companies such as Magna , Mainland, Lear , Virginia, Kasma , with a total investment of over 10 billion yuan; it brings together a number of parts manufacturing "future factory" such as Zhongce Rubber, Magna, Yanfeng Biou, and other national industrial design centers, and has initially formed an automobile industrial chain integrating vehicle manufacturing, component production, R&D design, and sales logistics.
Image source: "Dongfeng Yulong Automobile Co., Ltd. Investment Announcement"
"Cases of auto companies acquiring production qualifications are also uncommon. Like Ideal, Xiaopeng, and WM Motor all obtain production qualifications in this way and enter the automotive industry.This model is feasible for Dongfeng Yulon, but it must move quickly. The development of domestic new energy vehicles is in a critical window period, such as the industry is facing factors such as subsidy reduction. If Dongfeng Yulong wants to achieve long-term development in the future, it must quickly catch up with this window. "Zhang Xiang said.
Daily Economic News
Daily Economic News
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