On October 15, Jinbei Automobile issued an announcement stating that it plans to publicly list for transfer its subsidiary’s 95% equity stake in Tieling Brilliance Rubber & Plastic Products Co., Ltd., with the initial listing price no less than 1 yuan. The assessed value of all shareholders’ equity in the target company is negative 77.36 million yuan.
As of August 31, 2025, Jinbei Automobile’s receivables from Tieling Brilliance Rubber & Plastic totaled 42.23 million yuan, including 910,000 yuan in regular trade receivables and 41.32 million yuan in other receivables provided to support the subsidiary’s development.
According to the announcement, Tieling Brilliance Rubber & Plastic’s main clients, Brilliance Zhonghua Automobile Co., Ltd. and Brilliance Renault Jinbei Automobile Co., Ltd., have already declared bankruptcy. In recent years, Jinbei has continuously provided financial support to the subsidiary to promote strategic transformation, but the subsidiary is now insolvent and unable to turn losses around.
To prevent the loss of state-owned assets and to ensure stable operations and long-term development, Jinbei Automobile has decided to divest this non-performing asset.
Background Information
Jinbei Automobile, one of China’s key production bases for light commercial vehicles, was founded in 1988 and has been dedicated to the manufacture of light trucks, minibuses, and automotive components.
As a major shareholder, Brilliance Group shares deep historical ties with Jinbei. In 1991, Brilliance China Automotive Holdings Limited and Shenyang Jinbei Automotive Co., Ltd. jointly established Shenyang Jinbei Passenger Vehicle Manufacturing Co., Ltd., further advancing Jinbei’s growth. In 1992, Jinbei Automobile was successfully listed on the Shanghai Stock Exchange, laying a solid foundation for its subsequent expansion.
In November 2020, Brilliance Group fell into severe financial distress. The Shenyang Intermediate People’s Court, at the request of creditors, accepted the reorganization application of Brilliance Group, officially initiating bankruptcy restructuring proceedings.
After a year of turbulence, by March 2021, Brilliance Group and 11 affiliated enterprises entered into substantive consolidated restructuring. However, at the third creditors’ meeting held on June 30, 2022, the “Substantive Consolidated Restructuring Plan of Brilliance Auto Group Holdings Co., Ltd. and 11 Related Enterprises” failed to pass the vote. It was not until August 2023 that the draft restructuring plan finally won approval from the creditors’ meeting.
Following this, on August 2, 2023, Jinbei Automobile received a notification letter from Brilliance Group and Shenyang Automotive Industry Asset Management Co., Ltd., informing that the Shenyang Intermediate People’s Court had issued the (2020) Liao 01 Po No. 21-9 announcement, approving the restructuring plan and thereby terminating the restructuring proceedings for Brilliance Group and its 11 affiliates.
As of mid-2025, Jinbei Automobile reported operating revenue of 2.132 billion yuan and net profit attributable to shareholders of 103 million yuan.
