These involve auto parts, auto finance, new energy and other fields, with total assets of more than 190 billion yuan.īrilliance is also a joint venture partner with Germany’s BMW in China. Thus ended a 15-year journey of going public in the United States.Īt present, the group has six vehicle manufacturers, four listed companies (Brilliance China, Shanghai Shenhua, Jinbei Auto, and Xinchen China Power), and more than 160 wholly-owned, holding and equity companies under its umbrella. But the company’s listing on the Hong Kong main board was maintained. On July 5, 2007, Brilliance Auto’s board of directors announced its decision to delist, cancel the American Depositary Shares (ADS) listed on the New York Stock Exchange, deposit the ADS in the company’s depository bank – the Bank of New York. However, after May 2002, Brilliance Automotive’s performance began to decline and it suffered losses year after year. The US capital market had not been able to give the firm enough ammunition the trading volume of US stocks was extremely low, but it had to pay about $1 million in maintenance fees such as accounting and lawyers every year. And just 34 minutes after opening, 870,000 shares were traded at $20 per share. It represented Chinese companies going abroad and was seen as a flag-bearer of Chinese companies’ internationalisation.īrilliance Auto’s IPO price was $16 a share at the time, and it was expected to issue 5 million common shares and raise $80 million. As a result, the number of shares ordered was as high as 60 million, which was almost 12 times the issuance. It was China’s first domestic company to go to Wall Street to raise funds.Īt that time, Brilliance Auto’s listing in the United States had great significance. First China firm to list on NYSEĮstablished in the early 1990s, Brilliance Auto listed on the New York Stock Exchange as early as October 1992. The purpose of this is to coordinate relevant creditors not to draw, suppress or cut off loans, and to carry out debt restructuring for the future. More than half is short-term interest-bearing debt – 48.4 billion yuan – and short-term debt repayment pressure is huge.Īt present, its creditor banks have formed a debt committee, with China Everbright Bank and Industrial Bank as the co-chairman.

It had interest-bearing debt of 67.7 billion yuan, exceeding total liabilities. The scale of bonds maturing in one to three years exceeds 10 billion yuan.Ī report issued by the rating agency Oriental Jincheng in June showed that as of the end of March 2020, Brilliance Auto’s total liabilities reached 122.675 billion yuan (with an asset-liability ratio of close to 70%). They reduced their holdings of cash to avoid further losses.Īccording to Wind statistics, Brilliance Automotive Group currently has 15 surviving bonds, and a bond stock of 17.573 billion yuan. On that day, bond investors continued to sell on the inter-bank market, causing the “19 Huaqi Bond 01” to fall to a record low of 42 yuan.īoth bonds and stocks fell at the same time, reflecting investors’ concerns about the size of its debt problems and the liquidity of Brilliance Group. However, this failed to prevent a fall in bond prices. On August 14, after the stock plunge, Brilliance Auto suspended the public auction and trading of multiple bonds under its name on the Shanghai Stock Exchange and only took quotes and inquiries, in order to restrict retail trading of corporate bonds and avoid another sell-off, which would affect the valuation of bonds and stocks. The following day, the share price of Brilliance Automotive’s Hong Kong-listed subsidiary Brilliance China also plummeted, with an intraday drop of 14.3% – the largest intraday drop since August 2019. 19 Huaqi 01, 18 Huaqi 01, 18 Huaqi 02, 18 Huaqi 03 and other bonds fell more than 15%, while 19 Huaqi 01 fell 28.65% and 18 Huaqi 01 fell 28.25% in intraday trading. On August 12, corporate bonds plummeted again.

Some of the bonds have seen a drop of nearly 50%. Some of Brilliance Auto’s bonds started a continuous decline from late July. Sina Technology says bankruptcy and reorganisation may be inevitable. Brilliance bonds are hot potatoes, and Hong Kong-listed subsidiary Brilliance China ( 01114.HK) also saw its share price plummet.īrilliance Group has debts of up to 120 billion yuan and creditor banks have established a debt committee.

(ATF) The debt crisis brewing in car company Brilliance – a joint venture with BMW – has finally emerged, and the company faces bankruptcy.

Brilliance automotive enterprise