Since last year, the automobile sales terminal market has been showing a downward trend. Among automobile manufacturers, automobile dealers and consumers, the first crisis is car dealers. Many dealers are in the capital chain break. The vehicle certificate is still mortgaged in the case of the bank, and the new car is sold to the consumer by concealing the facts and violations, so that the unidentified truth cannot be put on the card without the certificate.
At the beginning of this year, 74 car owners of the FAW Mazda 4S store, which is a well-known auto dealer group listed on the New York Stock Exchange, was not able to get a new car. Brand 4S stores are even in a semi-closed state. What is the reason for the Liantuo Group, which owns the “first share†of the Chinese auto dealers NYSE, is in such a situation?
The "Securities Daily" reporter recently visited a number of 4S stores under the Liantuo Group and found that almost all 4S stores are not engaged in car sales. The only maintenance and repair business is also supported. A salesperson told reporters that his 4S shop no longer sells cars after the year. "The existing car keys were taken away by the bank, saying that there was a problem with the company's funds."
Mr. Zhang, who once served as the general manager of an Audi 4S shop, told reporters that after the Beijing purchase restriction, the single-brand dealer model business is single, and the model matrix is ​​not strong, it is easy to fall into the infinite loop of price-for-money exchange, and the capital chain It is also easy to be passively locked up by the bank. "In fact, several brands under the group are losing money. If there is a group that is already supporting the estimate, it has already closed."
Zhu Kongyuan, secretary-general of the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, said that the main reason for the difficulties in the survival of dealers was due to the serious overcapacity of automakers, as well as the unreasonable business policies of dealers and the difficulty of dealer financing.
At the same time, because the two trust products issued by the Group in 2013 were suspected by the short-selling institution GeoInvesting, which was not disclosed in the 2013 annual report of the listed company, the bad news began to ferment, which directly led to the stock price crash, even on January 16, 2015. As the average closing price was below $1 for 30 consecutive days, the company received a warning from the NYSE delisting delisting.
No car can be sold only for maintenance
On September 22, the reporter visited the comprehensive exhibition hall of the Liantuo Group's automobile sales in the Asian Games Village Automobile Trading Market in Beijing. The exhibition hall was chilled and emptied. Only a few of the spokes were out of the car. No one cares.
When the reporter consulted the exhibition hall and the vehicle information as a customer, a salesman who looked at the reporter looked at the reporter and continued to bow down to play the mobile phone. When the reporter walked to his side and raised the door to continue to ask questions, the sales answer was unexpected. "The company has so many things, you still come here to buy a car? The boss heard that they all ran, you go to another house to see it."
In recent years, the impact of the domestic car downturn has been huge, and the deterioration of sales has become more apparent. However, as China’s first and only auto dealership listed on the NYSE, it’s really embarrassing for Liantuo to be in such a field. With all kinds of questions, the reporter visited more 4S stores of Liantuo Automobile. .
On the morning of September 23, Beijing Liantuo Tongda Auto Sales and Service Co., Ltd., located at No. 18, Chemical Road, Guangqumen, Chaoyang District, had only one sales left behind, and was in a semi-closed state. The salesperson told reporters: "The car has not been sold for a long time, and the car key has been taken away by the bank, saying that there is a problem with the company's funds."
When the reporter asked when it was time to sell the car, the salesperson waved his hand: "This is all about the company's leadership. We also said that when it is not good to sell, basically no longer sell cars after the year." Subsequently, The reporter asked, when the employee's salary was raised, the person replied: "The company has not defaulted on wages, but now it is not allowed to sell cars, and it can't be sold. The sales are not commissioned. During this time, the company has gone a lot."
Subsequently, the reporter went to the Shanghai Volkswagen 4S shop in Block D, No. 56, Dongsihuan South Road, Chaoyang District, Chaoyang District, Beijing. Here, the reporter saw that there was no car in the exhibition hall, and a security guard sat in the doorway and sun. The store’s sales told reporters that it is not selling cars at present. “Because the bank’s business has not yet been resolved. There are some problems in the company’s operations, and we are currently trying to find a solution. We have to worry about buying a car from our side because Maintenance and maintenance have not stopped." When the reporter asked about wages and salaries, he said that the company did not default on wages. At present, everyone is waiting for the company's reply and arrangement. In front of the repair shop next door to the exhibition hall, several workers sat around.
Later, the reporter learned that before stopping the sale of the car, there are about 50 trains to be repaired every day and it is necessary to make an appointment by telephone one day in advance. Nowadays, as one of the only 4S stores that Liantuo still maintains, it is not only the customers who have been diverted to other stores, but the number of vehicles that are being repaired every day has dropped by nearly half, only on average. More than 20 vehicles.
On the afternoon of September 23, the reporter also visited Beijing and Xinshuntong Automobile Sales and Service Co., Ltd., a 4S shop of the FAW Mazda brand, which was once unable to be listed by customers. The five or six exhibition cars in the store were covered with dust, and they did not see the sales staff coming to the store for a while. Therefore, the reporter took the initiative to ask a staff member sitting in the customer maintenance work area. He said: "There is no car in stock. Due to problems in the operation of the group, the keys of the exhibition car have been taken away by the bank, and the exhibition cars are locked. â€
“Liantuo Group has had problems since the end of last year,†said a person in charge of a Changan Mazda 4S store. Since the new car is not available from the manufacturers, the Changan Mazda 4S store under the Liantuo Group can only Going to other Changan Mazda 4S stores to "carpool" and start a secondary dealer business.
Fund breakage or payment due to trust default
In 2010, Liantuo International was officially listed on the New York Stock Exchange. In the same year, Liantuo trademark was recognized as a “famous trademark†by the National Industry and Commerce Bureau.
People can't help but ask, why is a listed dealer group with such a strong strength encountering such a dilemma?
According to the 2013 annual report and related information disclosure of Liantuo International, its turnover in the past few years has exceeded RMB 3 billion. The founder and chairman of the Liantuo Group hold 46% of the common shares of the listed company, Lian Tuo International. It also has control of the Liantuo Group. The company operates 12 authorized brand 4S stores, 10 auto showrooms, 1 auto repair shop and a car rental company.
The incident stems from the May 28, 2014 short-selling agency GeoInvesting posted a challenge report to the company on the Seekingalpha website. The report pointed out that Liantuo Group, which holds shares in VIE entity for Lianto International, issued two trust products totaling RMB 250 million, but these financings were not included in the 2013 annual report of listed companies.
Both trust products were issued in 2013 for a period of two years.
The Liantuo Group Limited Partnership (POT), which was issued in early 2013, raised 100 million yuan for a period of two years, with an expected annualized revenue of 10.5%-12%. The financing entity is Liantuo Group. The funds are used for the construction and operation of Beijing Asian Games Village Auto 4S Store and Changchun Auto 4S Store. The mortgage guarantee is the land and real estate of Inner Mongolia Vocational College with a total value of over 200 million yuan. Responsibility repayment guarantee.
The Gansu Trust-Liantuo Group Loan Project Collective Fund Trust Scheme, which was issued in December 2013, raised 150 million yuan for a period of two years, with an expected annualized income of 10.5% to 11.5%. The main body of financing is the Liantuo Group. The purpose of the fund is “issuing the trust loan, including the construction of Beijing Audi 4S shopâ€. The repayment source is the operating income of all 4S stores (including the newly constructed 4S shop) of the Liantuo Group. The mortgage guarantee for the trust product is provided by the public service investment land and real estate owned by Zhonghe Investment Co., Ltd. in Mulin Town, Shunyi District, Beijing. The chairman and its wife of Liantuo International provide personal unlimited joint liability guarantee.
On May 29, 2014, Liantuo International issued a clarification announcement on the short-selling report, denying the allegations related to the company of 250 million yuan of trust financing. Liantuo International clearly stated that the two trust transactions are financings made by Liantuo Group under the control of its chairman, and have nothing to do with listed companies, nor have they brought any liabilities or liabilities to listed companies or their assets, so there is no need to disclose them.
However, on June 5, 2014, in response to the clarification announcement of the company on May 29, the short-selling agency re-offended the rebuttal. After the media's follow-up and the public's extensive attention, the bad news began to ferment. On January 16, 2015, the company received a warning of delisting from the NYSE due to an average closing price of less than US$1 for 30 consecutive days.
On January 22, 2015, the company announced that its management will use personal funds to buy shares of the company as soon as possible within one month, with a cumulative maximum purchase amount of US$1 million.
On March 10, 2015, Liantuo Group was deeply mired in business difficulties. Some of the vehicles sold by 4S stores were unable to give new cars to the cards due to the certificate of certification. Affected by the above news, the company's share price continued to fall, as of March 19, 2015, the stock closing price was 0.41 US dollars.
On March 13, 2015, the class action broke out, including the law firm of Rosen Law Firm and Hao Junbo Law Firm, and many other law firms represented the shareholder of the company (NYSE: LAS). Class action. The lawsuit period is from June 14, 2013 to March 9, 2015. The plaintiff mainly accused the company of misleading information disclosure in the following three aspects: 1. Liantuo Group, as one of the affiliates of Liantuo International, conducted a trust debt financing of RMB 250 million in 2013 for the construction of 4S stores. Liantuo International did not properly disclose the information; Second, Liantuo Group should be included in the consolidated scope of the report of Liantuo International; 3. Liantuo International lacks working capital in 2015.
From the listing of the joint venture to the New York Stock Exchange to the current slogan of litigation and loss, it has also been a four- or five-year period, which has also led to widespread thinking. Zhuo Jiwei, a financial professional, said: "The use of the VIE model for capital operation is a helpless 'innovation move', but if the capital operation is capital speculation, the shareholders' rights of the listed company will not be protected. Or the relevant interest parties deviate from the diligent and diligent and loyal to the professional principles of listed companies, then the VIE model may also be subject to more torture and strict supervision by the US capital market."
Business model transformation and industrial dilemma
Although the current problem is the Liantuo Group, its operational dilemma is the epitome of the struggling car dealers in recent years. Under heavy pressure, the survival of dealers has become the main problem at present. How to overcome the difficulties is a proposition that most dealers must think about.
Su Hui, former general manager of the Beijing Asian Games Village Auto Trading Market, said that since 2011, the market has been experiencing rapid growth, and the overall downward trend of the macro economy has greatly inhibited the production and sales of the auto market, and the number of Chinese motor vehicles after the rapid growth has also increased. After reaching a certain height, the psychology of buying a car tends to be rational. In addition to the policy control of automobile purchase restrictions, the slowdown in market demand growth is reasonable, and dealers will bid farewell to the days of “lying money to make moneyâ€. The “closed shop tide†is actually a concentrated outbreak of overcapacity and market growth slowdown in recent years. Automakers have overcapacity and overestimate the capacity of the current market. There are too many new 4S stores and fierce competition in the region. "Many car companies are reluctant to lower their profit expectations in order to maintain market share, continue to lay high sales targets, causing a large number of dealers to squeeze the warehouse, operating costs are rising, cash flow is tight, and the serious evolution is to break the capital chain or even close the store. Said Su Hui.
Automotive analyst Zhang Zhiyong believes that apart from the macro environment and the influencing factors of upstream car companies, the brand 4S shop is still facing challenges from automobile supermarkets and car e-commerce in the sales market, and there are professional auto repair and maintenance in the aftermarket. Competition for O2O services. The traditional 4S shop can be described as an enemy, and profits are divided by various emerging industries. Today's market downturn is a good opportunity for 4S shop after-sales service to profiteering. If dealers are willing to let prices return to rationality, it is expected to regain the after-sales service market."
The data shows that in the mature automobile market in the West, dealers' sales revenue from vehicle sales accounted for about 5%, and about 60% came from maintenance services and financial insurance.
Wang Wei, assistant secretary-general of the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, said that if the poor are thinking, the 4S shop must open its mind and seek transformation to survive the cold winter. In fact, today's dilemma comes from the market and car companies, on the other hand, it is also related to the shortcomings of its own business. The consolidation of the automotive aftermarket and the development of horizontal business will be the two breakthroughs in future profitability.
It is worth noting that there are reports that Xu Changming, director of the National Information Resources Development Department, has publicly stated that with the adjustment of the automobile market, there will be more and more dealers in the field of automobile circulation in the future.
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