Will WM Motor resume production this month? New shareholder: Plans to repay suppliers' debts and make an initial investment of 1 billion yuan.

After nearly two years of silence, the Weima Auto official account released a "White Paper to Suppliers" (hereinafter referred to as the "White Paper") on the morning of September 6.

The White Paper states that Shenzhen Xiangfei Automobile Sales Co., Ltd. (hereinafter referred to as "Xiangfei") has become the restructuring investor and new shareholder of Weima Automobile Technology Group Co., Ltd., Weima Smart Mobility Technology (Shanghai) Co., Ltd., Suzhou Weima Smart Mobility Technology Co., Ltd., and Weima Automobile Manufacturing Wenzhou Co., Ltd. (hereinafter referred to as the "Four Weima Companies").

Weima's Wenzhou manufacturing base. Photo source: Photographed by a reporter from Time Weekly

According to the restructuring plan approved by the court on April 3, Xiangfei has taken over the Four Weima Companies and is going all out to promote the rapid resumption of mass production of the Weima EX5 and E5 models at the Wenzhou base. The White Paper also mentions that the new company will repay the suppliers' payments according to the plan and in proportion after the court approves the restructuring. Meanwhile, the new company has received multiple supports from the Wenzhou municipal government, including financing support.

The new Weima has also formulated a three - step business development plan from 2025 to 2030. First is the revival stage (2025 - 2026): In September 2025, resume the production of the EX5/E.5 models, ensure an annual production and sales volume of 10,000 vehicles, and strive for 20,000 vehicles; at the same time, make overseas arrangements for a KD factory (assembly plant) in Thailand to explore the Southeast Asian and Middle Eastern markets. Produce 100,000 vehicles in mass production in 2026.

Weima Auto previously had two major production bases in Wuhan and Wenzhou. This White Paper only mentions the Wenzhou base. A reporter from Time Weekly sent a letter to the new Weima seeking details such as the resumption plan for the Wuhan base and the progress of the resumption of production at the Wenzhou base. As of press time, no reply was received.

Initial investment of 1 billion yuan

In the initial stage, Xiangfei expects to invest 1 billion yuan in equipment upgrading, supply chain restoration, and product R & D. Xiangfei also promises to concentrate the group's strength and has formed a team of 143 people to support the resumption of production of the new Weima Auto.

The White Paper released by the Weima Auto official account on September 6 mainly consists of six parts, including the court - approved restructuring plan, support from the Wenzhou government, and the plan for the new Weima.

Part of the content of the "White Paper". Photo source: Weima Auto's WeChat official account

The White Paper first mentions that Xiangfei has started to restructure the four Weima - affiliated companies according to the "Civil Ruling" of the court on April 3 and will repay the debts in different ways according to the amount of the claims: ordinary creditors with a claim amount of 150,000 yuan or less (including 150,000 yuan) will be repaid within six months after the court approves the restructuring plan; for ordinary creditors with a claim amount of more than 150,000 yuan, the part exceeding 150,000 yuan will be repaid according to the claim ratio.

The White Paper also mentions that the resumption of production of the new Weima Auto "has received strong support from the Shanghai municipal government and relevant departments, as well as the Wenzhou municipal government and relevant departments." At the resumption of production report meeting on June 26, the Wenzhou municipal government expressed its affirmation and will give full support, including but not limited to policy and coordination support, financing support, and credit rating restoration.

In addition, the Wenzhou municipal government will also provide subsidies and policy support and help with market and brand promotion under the premise of complying with laws and regulations.

The overall resumption of production plan for the new Weima generally includes three stages: the revival stage from 2025 - 2026, the development stage from 2027 - 2028, and the leap - forward stage from 2029 - 2030. Their respective goals are to produce and sell 10,000 - 20,000 vehicles annually; achieve an annual sales volume of 250,000 - 400,000 vehicles and start preparations for an IPO; produce 1 million vehicles annually and achieve revenues of 120 billion yuan.

Specifically this year: The new Weima Auto plans to produce at least 10,000 EX5 and E5 models, striving for 20,000 vehicles, with an estimated revenue of 1 - 2 billion yuan. In addition, the introduction of A00 - class sedans and small SUVs, with a total production of 10,000 vehicles, will further diversify the sources of revenue.

Is this Weima's last fight?

Weima Auto is one of the earliest new domestic car - making forces, founded by Shen Hui, a former senior executive of Geely Group and the former chairman of Volvo in China.

After Weima Auto was exposed to an operational crisis at the end of 2022, its factories in Wuhan and Wenzhou stopped production one after another. When a reporter from Time Weekly visited the Wenzhou factory in late February 2023, there were no signs of production in the factory, only security guards remained, and local stores were selling off inventory vehicles at discounted prices. The Wuhan factory was also "empty with no one around."

Weima Auto once tried to introduce new shareholders. For example, in January 2023, Weima Auto announced that Apollo Smart Mobility Group Limited had reached a conditional sale and purchase agreement with Weima Group, and the total amount of the proposed share placement would be approximately HK$3.918 billion, with a proposed temporary financing of approximately 720 million yuan. At the same time, Weima's shareholders promised to provide a standing financing of HK$1.5 billion.

However, there was no substantial progress in this matter later.

The background of Xiangfei, the acquirer of Weima Auto, has attracted attention. Nominally, the company is engaged in automobile sales and leasing, but in fact, it may be associated with the Baoneng Group. According to a report from Beijing News, the actual controller of Xiangfei is Baoneng - affiliated capital. On Tianyancha, Xiangfei and Baoneng Automobile Group Co., Ltd. (hereinafter referred to as "Baoneng Automobile") have the same phone number and email address.

Baoneng Automobile is an automobile company founded by Baoneng Group in 2017, but it has faced many development difficulties. Tianyancha shows that the amount to be executed against Baoneng Automobile exceeds 8.5 billion yuan, and it has also been listed as a dishonest debtor.

In June, some media reported that Weima Auto's products had entered Baoneng Automobile's showrooms.

Xiangfei and the new Weima Auto said that the revitalization of the new Weima is a unique opportunity to rebuild the new - energy vehicle ecosystem in Wenzhou. This move has received strong support from the government, as well as Xiangfei's financial and operational commitments. The court - approved restructuring plan ensures the fairness and transparency of handling historical debts, enabling the new Weima Auto to focus on production and growth.

Analysts believe that as one of the most - watched new - force brands in the early days, the bankruptcy storm of Weima Auto has severely damaged market confidence. Moreover, the current market competition is far more intense than before. Even if new shareholders are introduced for restructuring, the new Weima Auto faces significant challenges.

Meanwhile, according to reports from media such as JRJ.com: The restructuring plan of Weima Auto requires strategic investors to invest more than 10 billion yuan in the follow - up for debt repayment and resumption of production. If this amount is true, it poses high requirements for the new shareholders.

This article is from the WeChat official account "Time Weekly" (ID: timeweekly), author: Wu Kai, editor: Liu Xue, published by 36Kr with authorization.