The official website of the Liaoning Provincial Commission for Discipline Inspection and Supervision released a circular on the supervision of the business environment on the 6th, disclosing the typical case of Qi Yumin, former party secretary and chairman of Brilliance Automotive Group Holdings Co., Ltd., sabotaging the operating environment in the field of state-owned state-owned enterprises, seeking benefits for others and accepting more than 133 million yuan (RMB, the same below).
Destroyed the operating environment and accepted 133 million yuan of property
On May 6, the official website of the Liaoning Provincial Commission for Discipline Inspection and Supervision released the "Circular on the Actions of Discipline Inspection and Supervision Organs in the Province to Carry Out Business Environment Supervision Actions (III)" (hereinafter referred to as the "Circular"), which disclosed as typical cases such as Qi Yumin, former party secretary and chairman of Brilliance Automotive Group Holdings Co., Ltd. (hereinafter referred to as Brilliance Group), in the field of state-owned assets and state-owned enterprises.
According to the Circular, in August 2018, Brilliance Group signed an agreement with a company outside the province to cooperate in the development of new energy vehicle projects, during which Qi Yumin gave support and care to the company and accepted 11 million yuan of money; from 1995 to 2019, Qi Yumin took advantage of his position to seek benefits for 39 people in terms of borrowing funds, contracting business, and obtaining business and sales rights, etc., and received a total of more than 133 million yuan in property. Qi Yumin also had other serious problems of violating discipline and the law. In June 2021, Qi Yumin was expelled from the party, and the treatment he enjoyed was adjusted accordingly according to regulations, and his suspected crimes were transferred to the procuratorate for review and prosecution according to law.
According to public information, Qi Yumin was born in January 1959, joined the work in August 1982, and served as the general manager and director of Dalian Heavy Industry Group Co., Ltd., the chairman, general manager and standing committee member of the party committee of Dalian Heavy Industry Lifting Group Co., Ltd. In December 2005, Qi Yumin joined Brilliance Automotive Group Holdings Co., Ltd. and successively served as the chairman and president of the company, and retired in March 2019.
On December 4, 2020, Qi Yumin was investigated on suspicion of serious violations of discipline and law.
Qi Yumin. Video screenshots
On June 15, 2021, according to the Liaoning Provincial Commission for Discipline Inspection, Qi Yumin lost his ideals and convictions, ignored party discipline and state law, and resisted organizational review; violated the spirit of the eight provisions of the central government, accepted gifts that may affect the fair execution of official duties, and illegally equipped and used official vehicles; violated the rules of procedure to decide major issues, concealed and did not report personal related matters, did not truthfully explain problems when organizing correspondence, used his authority to seek benefits for others in the selection and appointment of cadres; borrowed money from management and service targets, and ran enterprises in violation of regulations. Illegal part-time remuneration, engaged in money and color transactions; dereliction of duty and dereliction of duty in the issue of false profits of Brilliance Group; neglect of management and education of spouses and children; took advantage of one's position to seek benefits for others and solicited and illegally accepted property; used the convenience of one's position to embezzle public funds to carry out profit-making activities for others; and abused one's power to cause serious losses to state-owned companies, resulting in heavy losses to the interests of the state.
In July 2021, the Chaoyang Municipal Procuratorate of Liaoning Province initiated a public prosecution in accordance with the law against Qi Yumin on suspicion of accepting bribes, embezzling public funds, and abusing power by personnel of a state-owned company.
In 2017, some media reported that Qi Yumin said when he went to work for Brilliance Auto, "I will give this life to Brilliance." The report at the time read, "As the helmsman of Brilliance Automotive Group, in view of the lack of core technologies in domestic automobiles, Qi Yumin led Brilliance Automobile to practice the strategy of 'market for technology', and in the in-depth cooperation with BMW, 'how fast and good to save and do independent', obtained BMW's authorization to produce N20, Prince series 1.6T, 1.8T a total of three engines, becoming the only independent brand enterprise that truly masters high-end core technologies." ”
Brilliance Group has entered the reorganization process
Brilliance Group is a state-owned enterprise in Liaoning Province, which directly or indirectly controls and participates in four listed companies (Hong Kong-listed Brilliance China and Xinchen Power, A-share Shenhua Holdings and Jinbei Automobile), and establishes BMW Brilliance Brilliance through its listed company Brilliance China and BMW. There are three independent brands of Zhonghua, Jinbei and Huasong and two joint venture brands of BMW Brilliance and Renault Brilliance.
Image source: Daily Economic News Infographic
According to Qixinbao, brilliance group shareholders are the State-owned Assets Supervision and Administration Commission of the Liaoning Provincial Government and the Liaoning Provincial Social Security Fund Council (Provincial Industry (Venture) Investment Guidance Fund Management Center), which hold 80% and 20% of the shares respectively.
As of the first half of 2020, Brilliance Group had total liabilities of 132.844 billion yuan, and after deducting goodwill and intangible assets, the asset-liability ratio was 71.4%. The operating conditions of the Group's own brands have further deteriorated, and the long-term accumulated debt problem has erupted.
BMW Brilliance has always been the "profit cow" and core pillar of Brilliance Group. In the five years from 2015 to 2019, after excluding BMW Brilliance's profit share, Brilliance Group accumulated a loss of 3.484 billion yuan.
Image source: Photo by reporter Pei Jianru (data map)
On November 16, 2020, Brilliance Group announced that Brilliance Group has constituted a total debt default amount of 6.5 billion yuan, and the total amount of overdue interest is 144 million yuan, due to the shortage of funds of the enterprise, the approval of the renewal credit has not been completed, resulting in the inability to repay.
According to the relevant person in charge of the State-owned Assets Supervision and Administration Commission of Liaoning Province, Brilliance Group has been poor in long-term operation and management, its own brands have been in a state of loss, and the debt ratio remains high. Since 2018, the Liaoning Provincial Government and relevant departments have been working hard to help Brilliance Group solve its cash flow problems, but its debt problems are difficult to return.
Affected by the new crown pneumonia epidemic, brilliance group's independent brand operation conditions have further deteriorated, and the long-term accumulated debt problem has erupted. In order to solve the debt problem, the relevant parties set up the Brilliance Group Bank Debt Committee to strive for debt settlement, but failed.
On November 20, 2020, the Shenyang Intermediate People's Court ruled to accept the creditor's application for reorganization of Brilliance Automotive Group Holdings Co., Ltd. The court's ruling stated that Brilliance Group had insufficient assets to pay off all its debts and had the bankruptcy reasons stipulated in the Enterprise Bankruptcy Law. But at the same time, the group has the value and possibility of salvation, and has the necessity and feasibility of reorganization.
At present, Brilliance Group has entered the reorganization process, but the reorganization draft has not been postponed many times. On December 3 last year, Jinbei Automobile (600609. SH) issued an announcement that the company received a "Notification Letter" issued by Shenyang Automobile Industry Asset Management Co., Ltd., and the Shenyang Intermediate People's Court ruled that the deadline for submitting the draft substantive merger and reorganization plan of 12 enterprises including Brilliance was extended to June 3, 2022.
Editor| Lu Xiangyong, Du Hengfeng, Gai Yuanyuan
Proofreading | Wang Yuelong
Daily economic news is synthesized from the official website of the Liaoning Provincial Discipline Inspection Commission, every App, and China Securities News