The youth car that ＂can run with water＂ was rejected by the bankruptcy court.
A few days ago, the Intermediate People’s Court of Jinhua City, Zhejiang Province rejected the application for bankruptcy and liquidation of the Youth Automobile Group (hereinafter referred to as the Youth Group), which is famous for "inventing the car and adding water to run". According to the civil ruling issued by the Judgment Document Network on August 26th, Haining Asset Management Company applied for the bankruptcy liquidation of Youth Group, and the reason for the application was "failure to pay off due debts and clear lack of solvency".
News protagonist
Famous for its water-hydrogen engine.
The reason why the Youth Group has attracted much attention is the "invention" of Pang Qingnian, the chairman of the board, that "the car can run with water". On May 23rd, Nanyang Daily published a front page titled "Water-hydrogen engine officially goes offline, and the secretary of the municipal party committee praised it! In the article, the article said that the water-hydrogen engine was officially off the assembly line in Nanyang City, which means that the vehicle-mounted water can produce hydrogen in real time, and the vehicle can drive only by adding water.
According to the official introduction of Youth Automobile, the youth water-hydrogen fuel vehicle does not need to refuel or charge, but only needs to add water, with a cruising range of over 500 kilometers and a car of up to 1,000 kilometers.
When the news comes out, detonate the network. Nanyang has become a place where many media flock.
On May 26th, Nanyang Municipal Government held a news briefing to introduce the project as "vehicle-mounted hydrogen energy vehicle for instant hydrogen production by hydrolysis". In the next step, we will continue to conduct further feasibility study on the project with a positive and prudent attitude, strictly control risks and ensure that there is no problem in capital investment.
Regarding the investment of the 4 billion yuan project concerned by public opinion, Nanyang Municipal Government stressed at the news briefing that "the project has not been established yet, and there is no substantial start, and there is no investment problem of 4 billion yuan".
Why is this same youth group related to the asset management company in Haining City, Zhejiang Province?
Origin of relationship
State-owned companies and youth cars once hit it off.
Enterprise investigation shows that Haining Asset Management Company is a 100% holding company of the State-owned Assets Supervision and Administration Office of Haining Municipal People’s Government with a registered capital of 2 billion yuan. It was established in December 1996 and its legal representative is Jiang Xuebiao.
Youth Group was established on January 9, 2001 with a registered capital of RMB 100 million, and its business scope covers the sales of domestic cars (excluding cars) and spare parts.
In 2005, Pang Qingnian contacted Haining for the first time. Originally, he only wanted to build a project involving automobile parts production in Haining. However, with the deepening of contact, Pang Qingnian expanded the project to the whole automobile industry chain such as vehicle manufacturing, new energy research and development and parts production.
In the available public reports, in May, 2010, Haining Automobile New Energy Project of Youth Automobile Group was officially started in Jianshan New District of Haining City. The total investment of the project is 119.12 million yuan, which will form an annual production capacity of 1 million 300,000 farads (capacity units) automobile supercapacitors.
At that time, Pang Qingnian was full of ambition. "Haining is a fertile soil. With the good seeds of youth cars, there will be good saplings." At the groundbreaking ceremony, Pang Qingnian said.
Everything seems to be developing in a good direction. On the afternoon of January 17th, 2011, the relevant leaders of Haining visited the construction site of Haining Lotus Passenger Car Project of Youth Automobile Group. The leaders are satisfied that the project has opened up the construction situation in a short time and made rapid progress. In March, the Environmental Protection Department of Zhejiang Province officially accepted the Environmental Impact Assessment Document on the Investment Project of 200,000 sets of passenger car stamping parts with an annual output of Haining Lotus Passenger Car Co., Ltd. Two things happened one after another, which made Pang Qingnian’s car dream in Haining more and more real.
However, first, the Youth Group’s plan of trial production of supercapacitors in June 2012 has never been implemented, and then the promise that the first car would be rolled off the assembly line at the end of 2012 has been delayed. Although during this period, the government of Jianshan New District in Haining has been maintaining good communication with youth groups, but the projects that have not progressed for a long time have also made Haining very difficult.
At the beginning of 2013, the Youth Group and the government began to draw up an agreement to end the project. After four months of discussion, the government decided to take back the land and the Youth Car Haining project ended.
At this point, the youth group Haining dream of building a car. However, its relationship with the state-owned management company in Haining City is "cut and disorderly".
Judging from the ruling of Haining State-owned Assets Management Company related to Youth Group that has been published at present, Youth Group entrusted the company to help it with the loan when it launched the automobile project in Haining that year.
In the ruling published a few days ago, the facts ascertained by Jinhua Intermediate People’s Court were also stated. "In August 2014, Shanghai Arbitration Commission issued (2014) Huzhong Case No.237, 239, 240, 241, 242, 243, 244, 245, 246, 247, 248 and 249 respectively. It was awarded that Haining Xianghe Auto Parts Co., Ltd., Haining Jirui Auto Parts Co., Ltd. and Haining Youth Light Vehicle Co., Ltd. paid Haining Asset Management Company the principal of the loan of 582 million yuan, interest and arbitration fees, property preservation fees, etc., and the Youth Group assumed joint and several liability for repayment. The post-youth group failed to fulfill its obligations determined by the arbitration award.
In other words, the youth group owes money to Haining State-owned operating company. Therefore, Haining Asset Management Company applied for bankruptcy liquidation of Youth Group.
Hard to say the status quo
Youth group assets exceed liabilities.
The balance sheet shows that by the end of 2018, Youth Automobile Group had assets of 1.583 billion yuan and liabilities of 735 million yuan. On this basis, the youth group believes that assets exceeding liabilities do not constitute bankruptcy conditions stipulated by law.
The Youth Group also pointed out that it has a leading position in the industry, has operational value and is still in operation. Youth Group is also one of the three enterprises in China that have the production qualification of complete sets of buses, trucks and cars, and the only one in Zhejiang Province. Among them, the bus project has three core technologies of neoplan platform: complete vehicle, drive and front axle, and it is a participant in 16 industry standards. Truck is the only heavy truck enterprise in China that has passed the EU normal standard certification.
Not only that, the Youth Group has always been at the forefront of the country in the research and development and layout of new energy vehicle technology. "It is the above advantages that have enabled the Youth Group to engage in business and have operational value despite the difficulties in recent years."
In terms of debt restructuring, Youth Group said that the realization of the restructuring plan is just around the corner.
In addition, the youth group believes that if it enters bankruptcy proceedings, it will lose all its automobile production qualifications, resulting in a sharp decline in enterprise value. According to the relevant agreements of the reorganization plan, bankruptcy proceedings will lead to the failure of the ongoing reorganization plan, which is not conducive to safeguarding the interests of other creditors.
Latest progress
The court rejected Haining Company’s bankruptcy liquidation application.
For the bankruptcy reorganization, the Youth Group also raised the objection that they had negotiated with Haining Asset Management Company according to the debt repayment plan of the reorganization agreement, but the two sides failed to reach an agreement. However, the Youth Group expressed its willingness to continue to communicate with Haining Asset Management Company on debt settlement and strive for understanding and support.
Jinhua Intermediate People’s Court believes that youth groups and affiliated companies mainly produce and sell new energy vehicles, which is a state-supported industry. Some of the core resources of the youth automobile series enterprises have operational value, and the youth group continues to operate, and there is no situation that the assets cannot be realized completely. Although youth groups have some difficulties in paying off debts, it is possible to pay off debts through self-negotiation, government assistance and investment introduction.
In the end, Jinhua Intermediate People’s Court ruled that the application of Haining Asset Management Company was not well founded and said it would not be accepted. Jinhua Intermediate People’s Court also stated that "if you are not satisfied with this ruling, you can submit an appeal to our court and submit a copy to the Zhejiang Higher People’s Court within ten days from the date of delivery of the ruling." Text/reporter Zhang Rui