TU-TESL

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New progress has been made in the bankruptcy and reorganization of the huge group. On December 10, * ST Dazhou issued a notice, and Tangshan intermediate people's Court of Hebei Province (hereinafter referred to as "the court") approved the reorganization plan of Dazhou Automobile Trade Group Co., Ltd. (hereinafter referred to as "Dazhou group") and terminated the reorganization procedure of Dazhou group, officially entering the stage of reorganization implementation. The main business of Da Da group is automobile distribution and maintenance. Due to various adverse factors such as the continuous downturn of the market and the deterioration of the financing environment, a huge loss occurred in 2018, which made it impossible to pay off the matured debt. On May 13, 2019, Beijing jidongfeng Automobile Sales Service Co., Ltd. filed an application to the court for restructuring the giant group. On September 5, the court accepted the reorganization case of Dazhong group, and appointed Dazhong group liquidation group as the manager of Dazhong group on the same day. The reorganization plan shows that among the claims that have been declared, the total amount of claims verified by the first creditors' meeting and confirmed by the court's ruling is 16.97 billion yuan. Among them, the property secured creditor's right is RMB 5.683 billion, the tax creditor's right is RMB 3.1465 million, and the general creditor's right is RMB 11.285 billion. The restructuring investors of Dazhong group are a consortium composed of Shenzhen Shenshang Holding Group Co., Ltd., Shenzhen Yuanwei Asset Management Co., Ltd. and Shenzhen National Transportation Technology Group Co., Ltd. The three parties will provide 700 million yuan to pay restructuring costs, pay off debts and supplement the company's working capital, and introduce Minsheng Bank to provide no more than 1 billion yuan of debt financing for the huge group to supplement the company's working capital. According to the restructuring plan, Shenshang group, Yuanwei assets and national transportation capacity commit that the net profit attributable to the owners of the parent company of Dazhong group in 2020-2022 will not be less than 700 million yuan, 1.1 billion yuan and 1.7 billion yuan respectively, or the total net profit in 2020-2022 will reach 3.5 billion yuan. If the above-mentioned standards are not met finally, the restructuring investor shall make up for them in cash to the giant group within three months after the publication of the 2022 annual audit report. In order to enable the huge group to resume its ability of continuous operation and profitability, the manager formulates an operation plan. In terms of stock business, brands (including passenger cars and commercial vehicles) without development prospects will be eliminated, focusing on core brands with profitability and prospects. Actively participate in the development of new retail business, and promote new business such as online car hailing, time-sharing leasing, door-to-door maintenance, touring RV, etc. At the same time, the group also actively promotes urban public transport operation, explores the commercialization of charging service business, and promotes the construction of smart cities and other incremental businesses.