Shanghai (ZXZC)- The restructuring application of Renault Brilliance Jinbei Automotive Company Limited (hereinafter referred to as "RBJC") was accepted by the Shenyang Intermediate People's Court on Jan. 12th, according to an announcement released by RBJC's parent, the HK-listed Brilliance China Automotive Holdings Limited (called “the Company” or “Brilliance China” for short).

Brilliance China said it will continue to closely monitor the development of the restructuring and actively cooperate with the subsequent procedures imposed by the court.

Jinbei Haise King; photo credit: RBJ

According to a report given by state-run Xinhua News Agency, the Sino-French joint venture RBJC applied to the court for the corporate restructuring on Dec. 30, 2021.

The new agency reported then that RBJC had already halted work at the plant in Shenyang, capital of Liaoning province. The joint venture is being slapped with capital chain rupture and insolvency, and cannot afford to pay wages and social insurance premiums for employees, according to the media outlet, citing a person with knowledge of the matter.

RBJC was incorporated in Dec. 2017 with a registered capital of $1.796 billion. It is 51% and 49% held by Shenyang Jinbei Automotive Industry Holding Co.,Ltd., a wholly-owned subsidiary of Brilliance China Automotive Holdings Limited, and Groupe Renault respectively. The joint venture primarily engages in producing and selling Jinbei-branded buses and MPVs.

The joint venture was confronted with sales downturn for recent years. As publicly disclosed, RBJC's annual auto sales reached around 43,000, 40,200, and 23,000 units in 2018, 2019, and 2020, sliding around 30%, 6.5%, and 42.8% year on year respectively.

Notably, prior to the formation of the joint venture, Jinbei was credited the No.1 Chinese light passenger car brand in 2010 with a market share of up to 75%.

Moreover, in April 2020, the French parent Groupe Renault said it would transfer its stake in another Chinese joint venture, namely, Dongfeng Renault Automotive Company Ltd (DRAC), to Dongfeng Motor Corporation. Meanwhile, DRAC would stop its Renault brand-related activities.