Baoneng’s EV Gamble Unravels as Factory Auction Fails Again
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Between 2017 and 2018, Baoneng Auto, the company's automobile unit, acquired a controlling stake in loss-making Qoros for 8.06 billion yuan. Photo: VCG
A second attempt to auction the main production facility of Baoneng Group’s carmaking unit has failed, just days after chairman Yao Zhenhua accused local authorities of conspiring to seize the asset at a discount.
The auction for Qoros Automobile Co. Ltd.’s factory in Changshu, Jiangsu province, closed Friday at 10 a.m. with no bids, according to the judicial auction platform hosted by JD.com. The plant, including its equipment and parts inventory, was listed at a starting price of 860 million yuan ($123 million), a 44% discount to its assessed value of 1.54 billion yuan. A previous auction held in December also failed to draw interest.
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- The auction of Baoneng Group’s Qoros car plant in Changshu failed for a second time, despite a 44% discount, with zero bids at a starting price of 860 million yuan.
- Chairman Yao Zhenhua accused local officials of engineering a low-valuation takeover, but Changshu authorities denied the claims; Qoros’ unpaid debts total 2.7 billion yuan.
- Baoneng Auto’s financial crisis forced project shutdowns and asset liquidations, with cumulative investment and R&D spending falling far short of original pledges.
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Who’s Who
- Baoneng Group
- Baoneng Group, led by chairman Yao Zhenhua, is a Chinese conglomerate that ventured into the electric vehicle (EV) market. After a failed hostile takeover of Vanke in 2016, Baoneng acquired Qoros Automobile Co. Ltd. Its ambitious EV plans were hampered by a liquidity crisis, missed payments, and insufficient investment in R&D. The company's main production facility recently failed to attract bids in a second auction, highlighting its financial struggles and the unraveling of its automotive unit.
- Qoros Automobile Co. Ltd.
- Qoros Automobile Co. Ltd. is Baoneng Group's carmaking unit. Its factory in Changshu, Jiangsu, failed to sell in two auctions despite a 44% discount. Qoros faces financial difficulties, with 2.7 billion yuan in unpaid debts, leading to the winding down of its Changshu plant's production.
- JD.com
- JD.com hosts the judicial auction platform where the auction for Qoros Automobile Co. Ltd.'s factory was conducted. The auction for the main production facility, including equipment and parts inventory, was listed at a starting price of 860 million yuan ($123 million) on their platform.
- Vanke
- Vanke is a property giant that was the target of a hostile takeover attempt in 2016 by Baoneng Group chairman Yao Zhenhua. This bid ultimately failed. Following this unsuccessful attempt, Yao Zhenhua shifted his focus to the electric-vehicle sector.
- Baoneng Auto
- Baoneng Auto, the carmaking unit of Baoneng Group, is facing a dramatic unraveling of its ambitious entry into the EV market. Its main production facility, Qoros Automobile Co. Ltd.'s factory, has failed to sell at auction twice, despite deep discounts. The company's liquidity crisis, unmet investment pledges, and significant debts highlight its struggles.
- BYD
- BYD is highlighted for its significant investment in research and development. In 2023 alone, BYD spent 40 billion yuan on R&D, considerably more than Baoneng's total investment in Qoros over eight years, which amounted to 8.1 billion yuan. This comparison underscores BYD's leadership in a competitive market.
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What Happened When
- Before 2016：
- Yao Zhenhua became known for attempting a hostile takeover of property giant Vanke.
- 2016：
- Yao Zhenhua attempted a hostile takeover of property giant Vanke, which ultimately failed.
- Between 2017 and 2018：
- Baoneng Auto acquired a controlling stake in Qoros Automobile for 8.06 billion yuan, with Yao pledging to invest 10 billion yuan annually in research over five years.
- 2021：
- Baoneng’s liquidity crisis became public; the company missed payments, laid off workers, and began winding down production at Qoros’ Changshu plant.
- Early 2021：
- Equipment at Qoros’ Changshu plant reportedly became idle and unmaintained.
- 2023：
- Leading player BYD spent 40 billion yuan on R&D.
- December 2025：
- The first auction of Qoros Automobile’s factory in Changshu failed, drawing no interest.
- 2026-01-14：
- Yao Zhenhua released a video alleging that Changshu officials colluded to devalue the factory.
- 2026-01-15：
- The second auction for Qoros Automobile’s factory in Changshu closed at 10 a.m. with no bids.
AI generated, for reference only
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