According to reports from multiple media outlets, Baoneng Automotive is gradually acquiring WM Motor and is in the process of transferring production qualifications and other assets. It is understood that WM Motor cars have already entered Baoneng Automotive’s showroom, with two WM Motor vehicles displayed alongside Baoneng’s own Youbaoli A3 models at the Baoneng Automotive Exhibition Center located at 406 Liyuan Road, Luohu District, Shenzhen.
The “rumor” of a potential merger between Baoneng Automotive and WM Motor is not unfounded.
In December 2024, the Shanghai Third Intermediate People’s Court made a ruling to merge and restructure WM Smart Mobility Technology (Shanghai) Co., Ltd., Suzhou WM Smart Mobility Technology Co., Ltd., and Wenzhou WM Automotive Manufacturing Co., Ltd. into WM Motor Technology Group Co., Ltd.
In January 2025, the creditor meeting of WM Motor Technology Group Co., Ltd.’s restructuring case was held via video conference. The meeting focused on verifying creditors’ claims, presenting the administrator’s work report, and reviewing and voting on the draft restructuring plan.
In April 2025, the Shanghai Third Intermediate People’s Court approved WM Motor’s restructuring plan and concluded the restructuring process. This means that WM Motor’s restructuring plan has received legal approval, and the company can now begin implementing the plan. According to the draft restructuring plan, WM Motor aims to resume production in 2025, undertake brand revitalization, and build a marketing network. Between 2026 and 2027, the company plans to ramp up research and development and achieve annual sales of over 600,000 units. Between 2028 and 2029, it plans to launch 10 new models globally, with an annual sales target of over 1 million units and revenue exceeding 110 billion yuan by 2029. The company targets a market valuation of over 150 billion yuan.
WM Motor’s ambitious plans are big, but they have attracted some investors. It is understood that Shenzhen Xiangfei Automotive Sales Co., Ltd. was the only remaining investor willing to invest at the time. Eventually, WM Motor signed a “Restructuring Investment Agreement” with Shenzhen Xiangfei, a company related to Baoneng Automotive. Shenzhen Xiangfei, established in September 2023, has a registered capital of 100 million yuan, with major shareholders including Shenzhen Zhuokai Enterprise Management Co., Ltd. and Shenzhen Fengyu Enterprise Management Co., Ltd. The actual controller is Huang Jing, who indirectly holds more than 40% of the shares. The actual controller of Shenzhen Youbaojia Automotive Sales Co., Ltd., also under Baoneng Automotive, is Huang Jing.
Although Baoneng Automotive is interested in acquiring WM Motor, and WM Motor hopes to turn things around, the reality is that the two companies share similar struggles.
Public records from the National Enterprise Credit Information Publicity System show that, in early June, Baoneng Automotive Technology Co., Ltd., Shenzhen Qianhai Ruizhizhi Investment Co., Ltd., Xi’an Baoneng Automotive Co., Ltd., Baoneng Automotive Sales Co., Ltd., and other companies published announcements regarding their “cancellation filings.” The reason given for cancellation was “the occurrence of dissolution matters as stipulated in the articles of association.” Baoneng Automotive R&D (Shenzhen) Co., Ltd. has also published a dissolution announcement and is in the process of declaring the invalidation of its business license.
In response to rumors of liquidation and dissolution within Baoneng Automotive and its associated companies, Baoneng Automotive issued a statement denying such claims. The company explained that although some companies show signs of dissolution and liquidation, all operations are running as normal. While some senior managers, including board members and supervisors, have left the company, it does not affect the company’s operations, and all businesses are continuing as usual.
The day before the statement was issued, Baoneng’s Youbaoli brand announced the launch of the Youbaoli A3 model. The Youbaoli A3 is not a new model; it had already been submitted for approval to the Ministry of Industry and Information Technology in 2022, with a planned release in the first quarter of 2023. The A3 is positioned as a small electric vehicle with a starting price of 40,000 yuan, competing mainly with models like the Wuling Hongguang MINIEV and Chery Ice Cream.
Today, the new energy vehicle market is highly competitive, with numerous high-performance, cost-effective vehicles emerging. Baoneng Automotive has fallen behind in terms of brand recognition and product competitiveness. To stand out in the market, it must quickly enhance its strength. However, strengthening its position requires addressing its current high debt issues and accelerating investment in R&D to launch new products. Every step in this process is challenging. Perhaps this is one of the few remaining opportunities for Baoneng Automotive.
