Chinese Automaker Baowo Fails to Repay Debt, Files for Bankruptcy: A Look at the Company's Struggles

According to reports, on April 20th, BAIC BJEV Co., Ltd. (hereinafter referred to as “BJEV”) added bankruptcy review information, and the applicant is BJEV, with the court handled by Beijing First Intermediate People’s Court.

The relevant ruling shows that BJEV applied to the court for bankruptcy liquidation on the grounds that it is unable to pay off its due debts, and its assets are insufficient to settle all debts. The court believes that the company belongs to the qualified subject of bankruptcy application and has the cause of bankruptcy, so its bankruptcy liquidation application is accepted.

BJEV was established in July 2015 with a registered capital of approximately CNY 114 million and Su Jiashui as its legal representative. Risk information shows that the company already has multiple information on executed persons, restrictions on consumption, and final cases, with a total unfulfilled amount exceeding CNY 400 million. On November 29th last year, the parent company of BAIC BJEV, Beijing Electric Vehicle Co., Ltd. (BAIC BJEV), had already gone bankrupt.

Speaking of BJEV, it is impossible not to mention Lu Zhengyao, who once told three stories that led to the capital market of Luckin Coffee, Shenzhou Rent-A-Car, and Shenzhou Ucar.

After Luckin Coffee exposed its financial fraud in April 2020, “Shenzhou System” assets continued to collapse. Shenzhou Ucar was delisted and Shenzhou Rent-A-Car announced privatization. With a cash flow crisis, no new car models were launched, and there was no “Shenzhou System” to take over. Xiaomi’s rumored acquisition of its car manufacturing qualifications now also appears to be a falsehood.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.