What happened to Waltmal?

In May 2018, a day that was slightly hot in the south of China, a breeze drizzle brought coolness to Shenzhen, making people feel comfortable. The season is close to the manger species, which is the season of “cultivation and harvest” in the year, but for the company’s headquarters in Putang, Shenzhen, this joy has long been irrelevant – since March this year, it has been a large number of suppliers. Since the door was closed for debt collection and suffered a huge debt crisis, self-rescue is the only subject currently.

“Some staff members have already started to change jobs. The debt crisis has made everyone feel a little worried. For ordinary employees, it is more about their own life and future.” Waltmal’s former employee Lin Wei (pseudonym) told China Automotive News The reporter said. At the entrance of the old factory in Waltmal, the company’s employees wearing green badges and rushing seem to be able to prove this. When the reporter stopped one of the pretending to consult the human resources department, the employee actually blurted out: "Will this time come to Waltmal to dry up?"

No one ever thought that for the first time in a row, the top three in the power battery industry, with the BYD and Ningde era, the water will be "the building will be dumped" in just a few months, the overall debt of more than 20 billion yuan will make a lot The person directly determines that the company has no medicine to save.

What happened to Waltmal?

Shutdown, production cuts, layoffs

In the industrial park of Pingshan New District of Shenzhen, the Waltmal Headquarters building is a very conspicuous building. The three characters of Waltmal hanging high above the building declare its glory in the past. However, in front of the reporter of China Auto News, the tightly closed telescopic door and the security guards standing upright and constantly observing the surrounding situation made people have to face the reality. On March 25th, the supplier blocked the door and pulled out the banner of “Shenzhen Waltmal Battery Co., Ltd. falsely open commercial acceptance bill deceiving supplier, failing to accept due, please return the supplier’s hard-earned money” banner. The scene is chaotic.

In order to understand the real situation of Waltmal, the reporter of China Auto News tried a variety of ways and wanted to enter the headquarters building to find out, but they failed to do so. "We don't know anything about it." The reporter just wanted to know a little about the status quo of Waltmal from the side, and he was directly rejected by the security guard. Indeed, the actions of the previous suppliers and the current state of the company made them have to be more alert and even had to preview the various situations.

Compared to the new Waltmal building, the old factory area, which is a few kilometers apart, looks a bit shabby, but the atmosphere is a bit more relaxed. "After all, the office building is at the headquarters, and the supplier blocked the factory." A Waltmal worker still master (a pseudonym) told the China Auto News reporter that "Waltmal was developed from this old factory. Later Only the new building was built. The old factory has four departments to produce batteries, because this matter (debt crisis) has now stopped two departments. The new building is also retreating from the office building, all renovated, but the capital turnover is not open only Can retreat."

It is understood that due to the debt crisis, as of the end of March this year, the operating rate of Waltmal is only about 20%, some production subsidiaries suspended production, and the demand for materials decreased.

Lin Biao confirmed the words of Master Shang: "It is indeed in the dormitory and office building, and there are layoffs in disguise. The technical posts are not very big, and the bottom management positions may affect the bigger ones."

“There are some employees who have started to leave, but there are still many people in the R&D department who stay behind.” A person in charge of the research and development department of Waltmal declined the interview of the reporter of China Auto News, only saying that he still sticks to his post.

Employees' feelings about the current state of business development are always more intuitive and sensitive. Lin Biao said that there were more than 6,000 people in the WeChat group a year ago, and now there are only 4,000 people left. “The company also has relevant management personnel to have a meeting similar to the mobilization meeting. I hope that everyone will have difficulties with the company, but the effect is average,” he said.

Master Shang’s view is relatively optimistic. After all, there are still two departments in the old factory. "It is still necessary to start work. Otherwise, if the workers are dismissed, the company will really fall. The new energy vehicles are so hot, the government will support them. And the company has a special response to the supplier's debt collection, and it should not block the door again." Master Shang said that he pointed to the Waltmal propaganda column on one side. The information in the column filled the state's various support policies for new energy vehicles, including financial subsidies.

Treasury bondage and pool fish

In fact, before the debt crisis broke out, the situation of Waltmal’s financial strains began to emerge. "In January of this year, I heard that the company's finances have been complaining about financial constraints. When the money arrives, it is taken away." Lin Biao said.

Suppliers’ door-to-door debt collection is like igniting a fuse, which has caused Waltmal’s debt crisis to expand rapidly. After they blocked the door, Waltmal finally could not hold it. Waltmal’s parent company, Jenweng, was able to issue a statement saying that the company’s shares held by Jianrui’s general manager and Watt Ma’s chairman Li Yao had been frozen by the judiciary.

On April 1, Jianrui Woergy publicly acknowledged that the company has experienced debt overdue. As of now, the overdue debt is 1.998 billion yuan, mainly due to bills and bank loans, facing creditors’ rights claims, and the company is facing debt repayment risk. , affecting daily operations. As of March 31, the company's overall debt was 22.138 billion yuan.

The huge debt directly triggered the chain reaction of more than 100 suppliers upstream. Some suppliers have been wary of this before, reducing or stopping supply before the debt crisis broke out, while other suppliers suffered heavy losses.

"We have nothing to do with Waltmal!" The person in charge of a supplier, after asking the reporter of China Auto News, had just left a sentence and hung up the phone, and then did not answer. The answer from another supplier's person in charge is more direct and surprising: "Waltmal has closed down!" A person familiar with Waltmal said: "Many suppliers have worked hard for many years and finally encountered Such a big customer of Tema, signed a large billion yuan, thought that he had embraced the 'cash cow tree', did not expect the final blood to return, do not rule out the existing road."

In the face of supplier debt collection, Li Yao said that the shabu-shabu is responsible for selling iron. On April 9, Jianruiwo was able to issue a notice stating that it intends to deduct the debts payable by the relevant suppliers through the form of inventory sales and sales of fixed assets, involving a total amount of 1,84,836,600 yuan, involving suppliers. A total of 104.

In desperation, some suppliers began to use the Waltmal battery to pay for the debt. "According to the battery's shipping price, but the lithium iron phosphate is not good to sell on the market, assuming a battery price of 25 yuan, can sell half of the price is good." A supplier told "China "Automobile" reporter, "There are too many debts. I didn't expect Waltmal to recover the money later. It can only sell a little bit. It is better than nothing."

The leader of the rivers and lakes

In 2002, Waltmal was established in Pingshan New District, Shenzhen. It is one of the first battery companies in China to successfully develop lithium iron phosphate new energy vehicle power batteries, automotive start-up power supplies, energy storage system solutions and to achieve large-scale production and batch application. .

In 2013, Waltmal launched the Waltmal New Energy Industry Innovation Alliance, with more than 1,000 corporate members, including more than 70 listed companies, integrating the entire power system and other components of upstream raw materials, motors, and electronic controls. .

With the rapid growth of China's new energy vehicle market, Waltmal's shipments have also risen, and it has been among the top three in the country for a long time, with the BYD and Ningde eras. In 2016, A-share listed company Jianruiwo was able to acquire Waltmal for a total of 5.2 billion yuan, after its main business was fire protection products. From a fire protection company to a power battery company, Kenrui is able to target the power battery. After the completion of the acquisition, the performance of the company was soaring. The report shows that in 2016, the company's operating income was about 3.82 billion yuan, a year-on-year increase of 557.03%, corresponding to the net profit attributable to shareholders of listed companies was about 425 million yuan, an increase of 1102.98%.

After the acquisition of Waltmal, the business focus of the company was transferred to the new energy vehicle power battery, and some of the fire protection products business was disposed of, and all-round investment in the research and development, production and sales of power batteries, Waltmal Also formally embarked on the road of capital market development.

Before the debt crisis broke out, although Waltmal felt the atmosphere of financial tension inside, the company still maintained a prosperous external image, and the news continued. In an official publicity in February this year, Waltmal said that the Innovation Alliance has put in more than 45,000 new energy vehicles, 500 charging stations and more than 5,000 charging stations.

In 2017, Waltmal's power battery installed capacity reached 2.41GWh, ranking third in the industry. It is also the only power battery supplier with more than 1GWh of new energy-specific vehicles.

Reverse customization is really a remedy

Why did Waltmal suddenly encounter the crisis of life and death? From the information transmitted by the company, the main reason lies in the misjudgment of the market environment. The reporter of China Auto News had contacted the office of Secretary of the Board of Directors of Jianrui Woeneng and Vice President of Waltmal and Zhong Mengguang, the general manager of Jianruiengeng, and all of them did not receive a reply.

In fact, before the debt crisis broke out, industry players and the media questioned the Waltmal Alliance and its so-called “reverse customization” sales model.

"To put it bluntly, this kind of alliance is not purely market behavior, even with a wrap-around nature. Upstream suppliers have no right to speak, and many times they will be under pressure," said a person familiar with the Waltmal Alliance.

In the opinion of a veteran of the power battery industry who asked not to be named, it is an option to warm up the group, but it is a question worth considering. “A company that joins the alliance should be a company with excellent products to support it. If this model is not well controlled, it will easily become a burden,” the veteran said.

In 2017, the media pointed out that Waltmal relied on “reverse customization” to generate revenue for listed companies. The media investigation found that the suspected Waltmal subsidiary's new energy capacity to purchase new energy logistics vehicles from a number of vehicle companies, designated the use of Waltmal batteries, in order to bring a large number of orders to Waltmal.

In the face of doubts, Waltmal denied the existence of "reverse customization" and "related transactions." However, Zhang Zhiliang (pseudonym), a person in charge of a complete vehicle company, confirmed the existence of this model to the reporter of China Auto News. “We have adopted an anti-matching cooperation model with Waltmal. We purchase Waltmal’s battery and its operating company purchases our vehicles.”

This "reverse customization" model has plagued Waltmal's suspicion of related transactions and illegal tactics. When subsidies tightened and this model was difficult to sustain, the debt crisis broke out. In Zhang Zhiliang's view, the parts and components companies do not have the experience of operating companies, and they cannot accurately grasp the market like the whole vehicle companies.

Shang Shifu said to the reporter of China Auto News: "The model is that the whole vehicle company purchases Waltmal's battery, and Waltmal buys the car again to achieve a win-win situation. In fact, it is to get subsidies."

Cheng also subsidized and subsidized

The rapid growth of Waltmal in the past few years is inseparable from the strong stimulation of the new energy vehicle subsidy policy. A passenger car has a financial subsidy of nearly one million yuan, which largely affects the development of many companies including Waltmal. Taking subsidies becomes the most important "baton", rather than innovation-driven development.

Waterma is both a beneficiary of subsidies and a "victim."

Zhong Mengguang once concluded: "At the time of the rapid expansion of the company, it was indeed a strategic mistake to fail to accurately predict the impact of policy adjustments. At the beginning, I wanted to reduce production costs and increase market share by means of volume. Too fast will lead to financial difficulties today."

Zhang Zhiliang believes that the crisis of Waltmal is directly derived from the inadequacy of the adjustment of state subsidy policies. “Operation needs to be over 30,000 kilometers to receive the subsidy policy, so that the return of the Waltmal funds will obviously slow down. The operating companies will not be able to get subsidies if they fail to meet the requirements. At the same time, they will expand and further increase the capital break. "

In the view of Wu Xue (pseudonym), a person in charge of a power battery company in Shenzhen, the new subsidy policy in 2018 gave Waltmal a fatal blow. She said: "The batteries produced by Waltmal are difficult to meet the requirements of the new policy for battery energy density. This part of the battery is not subsidized, and the whole vehicle company will not purchase this part of the car. Therefore, Waltmal is in the process of self-help. Said that this part of the battery should be sold as an energy storage battery."

"The ultimate development of the enterprise depends on technology and cannot rely too much on policy." The aforementioned seniors in the power battery industry pointed out that industrial development is gradual, and Waltmal has not blindly expanded according to the current status of the industry, which is also the cause of its debt crisis.

Technology is the foundation of enterprise development. Waltmal himself is aware of this problem. The announcement issued by Jianrui Woeng in April this year shows that Waltmal has always adhered to the technical route of lithium iron phosphate power battery, but the latest subsidy policy introduced in early 2018 is obviously inclined to high energy density products, and the market of ternary lithium battery accounts for The ratio has improved. According to the data of the Higher Industrial Research Institute (GGII), in 2017, the proportion of domestic new energy passenger car battery installed capacity, the proportion of ternary lithium batteries has reached 76%. As of the end of the reporting period, Waltmal does not have a ternary lithium battery product. In the future, if it does not develop and launch a ternary lithium battery product in time, there is a risk that the company will not be able to withstand the industry's ability to change due to the single product.

"Wortma has always developed a ternary lithium battery. The company also plans to buy a ternary lithium battery production line. But the current situation is no money, and the R&D engineers have a lot of resignations, so it is difficult to come up with products for a while." He said.

Financial subsidies are about to fall completely, and the market's demand for energy battery energy density and new energy vehicle driving range will lead to further market concentration. “Big waves and sands, only companies with strong R&D capabilities and keeping up with changes in market demand can survive.” Wu Xue said.

Difficult self-defense edge

After the debt crisis broke out, in addition to the debt-to-debt, Waltmal also actively took other measures to save themselves, and some good news was released.

Li Yao said recently that he is currently negotiating with more than a dozen strategic investors, three of whom are more in-depth, but it is not convenient to disclose details for the time being. The attitude of Kenrui Energy is that, for the healthy development of the company and the industry, it is willing to sacrifice equity or even transfer the shares at a low price; as long as the strategic investors are interested in the industry, the company will try its best to facilitate the transaction.

On May 14, Jianruiwo was able to issue an announcement stating that Waltmal, Tongling Waltmal Battery Co., Ltd., Shenzhen Citivity New Energy Automobile Co., Ltd. and a consortium of 16 banks signed the "Silver Group Loan Contract" The initial loan amount of 16 banks was 4.234 billion yuan.

On May 17, Jianruiwo was able to announce that the wholly-owned subsidiary Shenzhen Waterma Battery Co., Ltd. recently signed a sales contract with Chengdu Universiade Automobile to sell 15,000 sets of lithium iron phosphate battery packs to the latter . The contract amount is 2.862 billion yuan.

On May 21, Jianruiwo was able to issue an announcement. The company's grandson, Anhui Waltmal, recently signed a “purchase contract” with China Tower on product procurement. Anhui Waltmal will supply ladder lithium batteries to China Tower, with a contract amount of 6. 8.4 billion yuan. On the same day, Jianruiwo disclosed the 2018 stock option incentive plan, which is intended to award 168 million stock options to incentive targets, accounting for 6.91% of the company's current total share capital.

Seeking new investment, asking for help banks to transfuse blood, signing new orders, developing energy storage business, and strengthening the equity incentive plan, Waltmal’s self-help road is a busy scene.

However, the situation is still extremely pessimistic. Bills payable is still a small expense, huge debt pressure, like the sword of Damocles hanging on the head of Waltmal. As of May 11, Jianruiwo has overdue debts of 3.532 billion yuan.

"Too too much emphasis on the business model itself, the subsidy is in the face of quick success and neglects the fundamentals of the enterprise driven by technology-driven and innovation-driven development. In any case, it will not work. The rapid rise of the competitor Ningde era can just be a mirror of Waltmal." Another senior in the battery industry said that the power battery industry is in the midst of a major reshuffle, and the competition is fiercer. Waltmal under the huge debt burden is on the verge of life and death.

It’s time to get rid of policy dependence.

When the New Deal blocked the loopholes and ended the GSP, when the subsidy exited into the countdown and “double points”, who is the gold who is the sand, a moment of stagnation.

The industry is pleased to see that under the strong promotion of national policies, China's new energy vehicle industry has made great progress, some vehicle manufacturers have emerged, and some component suppliers have grown into dazzling stars.

However, the policy may also evolve into a double-edged sword. Reasonable use may be more effective, not respecting the laws of the market, and only knowing the rush to drill holes, it is inevitable that the disease is riddled. Regrettably, in the development of China's new energy automobile industry, a considerable number of enterprises have suffered from serious dependence, so that under the prosperous situation, they have fallen into a "chicken feather."

The current experience of Waltmal is not a case, and the power battery industry is only a representative. Many market chaos, strange, and discerning people understand. For example, some new energy auto companies have won the national annual sales champion, but their profits have shrunk dramatically. On the one hand, they are not prepared to subsidize the decline, and on the other hand, because they are taking the low-end route. For example, some power battery companies blindly expand production capacity, instead of trying to improve the technical level and improve product quality, causing their own capital chain to break, which will help the low-end industrial overcapacity. In fact, even companies such as BYD and Yutong, which have been deeply involved in the automobile industry for many years, are affected to some extent by subsidies. Sales growth and profitability are less than expected, which is quite different from the triumph of the previous years.

It is time for the new energy auto industry to get rid of policy dependence! And you must get rid of it, the sooner the better!

Although China's new energy vehicles have a large number of cars, but the star models are rare, saying that "the Tesla can be created in minutes", but now there is no product that can be matched with the customer and truly delivered to customers. As for the truly competitive enterprises, although there are, there are not many. If new energy vehicles want to catch up with fuel vehicles, they must rely on market performance.

The global industrial competition is changing. Countries, regions such as Europe, Japan, South Korea and other countries have accelerated their deployment in the field of new energy vehicles, and the door to the Chinese market has been opened. According to the plan, China will be divided into 2018, 2020, and 2022, respectively, to cancel the foreign-funded ratio of special-purpose vehicles and new energy vehicles, commercial vehicles, and passenger vehicles. In 2022, no more than two joint ventures will be cancelled.

Once the auto powers are really more energetic, can independent new energy auto companies win in the market? I am afraid that few people now dare to embrace a completely optimistic attitude. Only by squeezing out the bubble, going to the falsehood, and realizing the technology through innovation, can the independent enterprise truly stand in the market, and the new energy automobile industry can truly promote China's automobile power to become a car power.