| Huachen Automotive Group Holdings Co. Ltd. | |||||||||||||||||||||||||||||||||||
| Trading Name: | Brilliance Auto Group | ||||||||||||||||||||||||||||||||||
| Type: | State-owned enterprise | ||||||||||||||||||||||||||||||||||
| Location City: | Shenyang, Liaoning Province | ||||||||||||||||||||||||||||||||||
| Location Country: | China | ||||||||||||||||||||||||||||||||||
| Area Served: | Exported worldwide | ||||||||||||||||||||||||||||||||||
| Industry: | Automotive | ||||||||||||||||||||||||||||||||||
| Revenue: | CNY181130 million | ||||||||||||||||||||||||||||||||||
| Revenue Year: | 2019 | ||||||||||||||||||||||||||||||||||
| Net Income: | CNY279 million | ||||||||||||||||||||||||||||||||||
| Net Income Year: | 2019 | ||||||||||||||||||||||||||||||||||
| Assets Year: | 2019 | ||||||||||||||||||||||||||||||||||
| Equity: | CNY4992 million | ||||||||||||||||||||||||||||||||||
| Equity Year: | 2019 | ||||||||||||||||||||||||||||||||||
| Num Employees: | 5,610 (Brilliance Auto only)[1] | ||||||||||||||||||||||||||||||||||
| Num Employees Year: | 2019 | ||||||||||||||||||||||||||||||||||
| Parent: | Liaoning Provincial Government's SASAC | ||||||||||||||||||||||||||||||||||
| Subsid: | Brilliance Auto (HKEX:; 42.32%) | ||||||||||||||||||||||||||||||||||
| Footnotes: | financial figures are from consolidated financial statements; profit and equity have excluded minority interest. Source:[2] | ||||||||||||||||||||||||||||||||||
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Huachen Automotive Group Holdings Co. Ltd., known for its brand name Brilliance Auto Group, was a Chinese multinational automobile manufacturer holding company headquartered in Shenyang. Its products include automobiles, microvans, and automotive components. Its principal activity is the design, development, manufacture and sale of passenger cars sold under the Brilliance brand.
Brilliance Auto Group holds a 42.32% shareholding in the Bermuda-incorporated Brilliance China Automotive Holdings Limited (commonly known as Brilliance Auto or Brilliance China), which is listed on the Frankfurt and Hong Kong stock exchanges.[3]
Brilliance China Automotive Holdings (Brilliance Auto) previously produced "Brilliance" branded cars under manufacturing unit Brilliance Motor which has since been sold to BMW. Brilliance Auto also holds 25% of BMW Brilliance, a joint venture with BMW which produces, distributes and sells BMW passenger cars in mainland China. It also holds a 51% stake of Renault Brilliance Jinbei, a joint venture with Renault which designs, develops, manufactures and sells light commercial vehicles under the Jinbei, Huasong and Renault brands. As of 2022 (VW), BMW holds 100% share in Brilliance Motor and 75% of BMW-Brilliance, controlling the majority of production capacity under Brilliance.
In 2010, Brilliance Auto Group and its subsidiaries had an annual production capacity of 800,000 vehicles[4] although capacity has come online since. In 2012, the company manufactured almost 650,000 vehicles, the eighth-largest production of any Chinese vehicle maker that year.[5] Roughly 70% of production was consumer sedans.
The origins of Brilliance Auto Group (officially Huachen Automotive Group Holdings Company Limited) can be traced to a Chinese government-owned automobile factory which under founding chairman Yang Rong, became one of the leading Chinese makers of minibuses between 1991 and 2002.[6] [7]
On 9, June 1992, a subsidiary, Brilliance China Automotive Holding Limited was incorporated in Bermuda.[8] [9] In the same year, the company was registered as a foreign company in the Hong Kong Companies Registry. Initially, the subsidiary owned 40% stake of Shenyang Jinbei Coach Manufacturing Co. Ltd., while the rest of the stake was owned by another company, Shenyang Jinbei Automotive Company Limited (;). The ratio was later changed to 51% owned by Brilliance China Auto and 49% owned by Shenyang Jinbei Automotive. The American depositary shares of Brilliance China Auto was floated in New York Stock Exchange from 1992[10] as NYSE:CBA. The company intended to delist from NYSE in 2007[11] [12] and completed in 2009.[13]
In 1999, the Group injected most part of the group assets to the subsidiary, and the shares started to float in the Stock Exchange of Hong Kong (now part of Hong Kong Exchanges and Clearing) as SEHK:1114.[14], Huachen Automotive Group (Brilliance Auto Group) owned 42.32% shares of the listed company as the largest and controlling shareholder.[15]
The Group has another listed associate company that is listing in the Shanghai Stock Exchange: Shenyang Jinbei Automotive Company Limited., the Brilliance Auto Group, via an intermediate company Shenyang Automobile Industry Asset Management Company Limited, owned 24.38% shares of that company as the largest and controlling shareholder.[16] It was planned to inject the stake into the major listed company of the group, Brilliance Auto, in 2003.[17] However, the deal was collapsed. Nevertheless, Shenyang Jinbei Automotive did not have the controlling interest on Shenyang Jinbei Coach Manufacturing since 1992, which is the predecessor of Brilliance Jinbei[18] (now Renault Brilliance Jinbei).
Shenyang Jinbei Automotive was listed in the stock exchange since 1992.[19] Shenyang Jinbei Automotive and Brilliance Auto Group were separate conglomerates, which the controlling stake of Shenyang Jinbei Automotive was acquired by FAW Group in 1995.[10] [20] Shenyang Automobile Industry AMC agreed to acquire 29.91% stake from FAW Group in 2000.[21] [22]
In 2001, Shenhua Holdings agreed to acquire the shares of Shenyang Jinbei Automotive that held by Shenyang Automobile Industry AMC, allowing the Jinbei marque integrated into the Group. However, the deal revised into Brilliance Auto agreed to acquire the stake from Shenyang Automobile Industry AMC in 2003. Despite the final deal became Brilliance Auto Group acquired Shenyang Automobile Industry AMC directly in April 2018 from the Shenyang Municipal People's Government, which in turn has the full control on the stake of Shenyang Jinbei Automotive that held by the AMC.[23]
In 2003, BMW and Brilliance Auto signed a deal for the production of BMW-branded sedans in China.
In 2005, Brilliance planned an entry into the newly formed FIA World Touring Car Championship. However, the Brilliance WTCC program did not make the grid.[24] [25]
From 2009 to 2011, the group was between the eighth-largest automaker in China.[26] [27]
In 2012, Brilliance Auto Group formed a joint venture Brilliance Shineray in Chongqing with Shineray Group[28] to produce SWM[29] and Jinbei brand automobiles. As of 2019, Shineray Group owned 80% stake of that joint venture. The rest is owned by .[30] The latter is not part of the Brilliance Auto Group,[31] [32] but the Group provides guarantee to some debt of that company.[33]
In 2013, Brilliance Auto formed a spin-off, Xinchen China Power Holdings Limited.[34]
In 2017, Brilliance Auto also formed another joint venture Renault Brilliance Jinbei with Renault.[35] [36] The Brilliance Auto acquired the remaining 39.1% stake of Brilliance Jinbei from sister company Shenyang Jinbei Automotive,[37] and then Brilliance Auto re-sold 49% stake to Renault.[38]
In October 2018, BMW Brilliance, a 50:50 joint venture between BMW and Brilliance, was taken over by BMW by acquiring an additional 25% of available shares.[39] [40]
In recent years, Brilliance Group has suffered from long-term poor management and its own brands have been in a state of loss. The main profit comes from BMW Brilliance, and the debt ratio remains high. In 2019, Brilliance Auto's net profit was RMB 7.626 billion. If the financial data of BMW Brilliance were removed, it would be a loss of RMB 1.334 billion. In the first half of 2020, Brilliance Auto's net profit was RMB 4.045 billion, of which BMW Brilliance contributed RMB 4.338 billion. Two credit rating agencies in mainland China, Dagong International and Oriental Jincheng, began to put Brilliance Bonds on their watch list in late August 2020. By late September, Brilliance's credit rating began to be downgraded. By late October, Brilliance's credit rating had been reduced from AAA to A+.[41] [42]
In November 2020, Brilliance Auto's parent goes into bankruptcy administration,[43] and announced the default of corporate bonds worth more than CNY6.5 billion.[44] The bankruptcy administration is not affecting subsidiaries Brilliance Auto, Xinchen China Power, Shenhua Holdings, Shenyang Jinbei Automotive, or any of the joint ventures operated by the organization.[44]
On January 12, 2021, the Shanghai Stock Exchange issued a disciplinary decision to publicly condemn Brilliance Automotive Group Holding Co., Ltd. and its chairman and person in charge of information disclosure affairs.[45]
On December 30, 2021, Brilliance Renault Jinbei Automobile Co., Ltd. filed a new bankruptcy review case, and the handling court was the Shenyang Intermediate People’s Court of Liaoning Province[46] .
In June 2023, Brilliance Group stated that it had identified Shenyang Automobile Co., Ltd. as a potential investor in the reorganization. Information shows that Shenyang Automobile is a wholly-owned subsidiary of Shenyang Cairui Investment Co., Ltd. Caisheng Investment, a subsidiary of Shenyang Cairui Shengjing Financial Holdings, and Shenyang Metro Operation, a subsidiary of Shenyang Metro, each hold 50% of the shares. The actual controller is Shenyang State-owned Assets Supervision and Administration Commission. After the relevant procedures for reorganization are passed, the actual controller of Brilliance Auto will be changed from the Liaoning Provincial State-owned Assets Supervision and Administration Commission to the Shenyang Municipal State-owned Assets Supervision and Administration Commission.[47]
On September 15, 2023, FAW Car Vice President Liu Xuemin and former Vice President Liu Tongfu were suspected of serious violations of discipline and law and were both subject to disciplinary review and supervision investigation by the Liaoning Provincial Commission for Discipline Inspection and Supervision.[48]
Brilliance Auto Group and its subsidiaries sell passenger cars under the Brilliance marque
See main article: BMW Brilliance. In 2003, BMW and Brilliance agreed to make select products of this German luxury carmaker in China.[49] As of 2010, the joint venture makes the BMW 3 Series and BMW 5 Series and had plans to introduce the BMW X1 by 2012. As of 2011, locally produced engines were slated to appear in some offerings soon, and the company had plans to bring up total production capacity to 300,000 by 2013.[50]
These vehicles may differ slightly from those sold in other markets under the same names. As of mid-2010 almost 60% of the components used to manufacture the China-built BMWs were imported to China.[51]
See main article: SWM (automobiles). Brilliance Shineray is a joint venture between Brilliance Auto Group and Shineray Motorcycle Company (Shineray Group), one of China's largest motorcycle producers. Shineray Group bought the Italian motorcycle brand, SWM (motorcycles), and started an automotive brand with the SWM nameplate. SWM now makes a range of crossovers and compact MPVs.
Key models include:
See main article: Jinbei (marque). Formerly a wholly-owned subsidiary (Shenyang Brilliance Jinbei Automotive) which sold licensed Toyota and General Motors designs, Jinbei was re-formed with Renault in 2017 with plans to launch light commercial vehicles and SUVs with Renault technology, under the Jinbei and Renault marques.
Key models include:
BMW-branded autos are made at a production base in the Northeastern Chinese city of Shenyang completed in 2004, and ongoing construction saw this base increase its production capacity to 200,000 units/year by 2012.[52]
An engine-making production base is located in Mianyang, Sichuan province.
A total of 188,143 Brilliance marque vehicles were sold in China in 2013, making it the 25th largest-selling car brand in the country in that year (and the tenth largest-selling Chinese brand).[53]
In 2007, Brilliance's BS6 sedan performed poorly in a crash test conducted by Germany's ADAC, receiving only one out of five possible stars in the Euro NCAP rating.[54] Brilliance then redesigned the car, changing at least sixty components, and it saw a three-star performance in a crash test performed by Spain's Idiada.[55] However, the price also rose considerably,[56] and the importer (HSO Motors) went bankrupt in November 2009.[57] Brilliance then tried to go it alone, but with high pricing and considerable market reluctance after the well-publicized crash test failures, exports to Europe were ended in April 2010 with no immediate plans for resumption.[58]
See main article: SAIPA. In 2015, Brilliance announced it had started joint production with SAIPA of Iran, to produce the H300 and H200 models, under the local brand name of Saipa.[59]