On August 12, several bonds of Brilliance Automobile Group continued to plummet. Among them, 19 Huaqi 01 fell 28.65% to close at 54.800 yuan per sheet; 18 Huaqi 01 fell 19.93% to close at 55.800 yuan per sheet; 18 Huaqi 02 fell 18% to close at 56.930 yuan per sheet; 18 Huaqi 03 fell 17.16% to close at 59.800 yuan per piece. These bonds have been in a continuous downward trend since the end of July, falling from around 90 yuan to the current price.
Regarding the continued decline of its bonds, the reporter contacted the relevant person in charge of Brilliance Auto. The person in charge said that some bond holders followed suit and affected the company’s bond prices. On the one hand, the company, as a state-owned enterprise in Liaoning Province, will not let it happen, so don’t worry too much. On the other hand, the current financial situation is normal, and there is no arrears of interest or wages.
On the news, there have been media reports recently. According to people familiar with the matter, Brilliance Auto Creditor Bank has formed a creditor committee, with China Everbright Bank as the main lead bank. Currently, it is still in the stage of letting creditor banks report their claims.
The above-mentioned person in charge said in response to the reporter: “The establishment of the debt committee is mainly to coordinate the relevant creditors not to draw, suppress or stop loans, and to continue to provide financial support to the company, not to bankrupt the company itself.”
It is also reported that the 19 Huaqi 01 and 18 Huaqi 03 rating agencies are Oriental Jincheng International Credit Rating Co., Ltd., and the 18 Huaqi 01 and 18 Huaqi 02 rating agencies are Dagong International Credit Rating Co., Ltd. Although the price of the aforementioned bonds has dropped significantly, the bond ratings and thematic ratings are still AAA, and there is no downward trend.
A bond investor questioned that the AAA rating of Brilliance Bond, which was only given by the rating agency in June this year, has now reported debt restructuring, and the rating is seriously inflated.
Regarding the debt situation of Brilliance Automobile Group, Oriental Jincheng disclosed that as of the end of March 2020, the company’s total liabilities were 122.675 billion yuan, a decrease of 15.27% from the end of 2019, mainly due to the repayment of bonds and long-term loans due within one year. From the perspective of the term structure, as of April to the end of December 2020, the company’s interest-bearing debt is 43.267 billion yuan, accounting for 63.87% of all interest-bearing debt. The company’s short-term debt is large and there is short-term centralized debt repayment pressure.
Regarding the company’s financial issues, the above-mentioned person in charge told reporters that the current financial situation is normal, and there is no arrears of interest or wages.
It is reported that as of the end of March 2020, the company has a registered capital of 8 million yuan. The State-owned Assets Supervision and Administration Commission of Liaoning Province and the Social Security Fund Council of Liaoning Province hold 80.00% and 20.00% respectively, and the actual controller is the State-owned Assets Supervision and Administration Commission of Liaoning Province. The company is mainly engaged in vehicle manufacturing. Its products include BMW Brilliance and Brilliance Zhonghua vehicle products. The company also has some parts and components and other businesses. Among them, the company’s revenue and gross profit are mainly derived from BMW Brilliance’s vehicle series products.