The Battery Giant Is Down!Nearly 10,000 Employees, $1.3 Billion In Debt, Broken Capital, Bankruptcy Liquidation!

- Nov 17, 2018-

According to the civil ruling of the intermediate people's court of xinxiang city, nanpi county dongsheng electric co., ltd. applied for bankruptcy liquidation of henan huanyu power supply co., ltd. on the ground that henan huanyu power supply co., ltd. could not pay its due payment of 107,2012.44 yuan, and the company has stopped production and is obviously lack of solvency.

In fact, because of the debt crisis, huanyu power, involving a number of litigation cases, plant, equipment, equity was closed.As of July 31, 2017, the company had total assets of 1.13 billion yuan, total liabilities of 1.327 billion yuan, net assets of -197 million yuan and asset-liability ratio of 117%.The company's capital chain is broken, it can no longer pay off debts due, and it has been stopped completely at present.

According to the industrial and commercial system, there are 150 business risks, 24 of which have been listed on the credit failure blacklist, and 199 lawsuits, which are fatal for enterprises.In fact, one of the biggest weaknesses of huanyu's bankruptcy is diversification, which is the abyss facing the battery giants at present.

Almost all large enterprises in the vortex of diversification, the business of battery enterprise cash flow as huge body, years of price war make many battery plant project itself does not make money, but through the capital flow in order to gain financial profits and diversified investment, little imagine, batteries are not to make money, why do other project can make money?

Return a head to see a dealer again, a year sell ten thousand son eight thousand electric car, begin to float however, some people open a hotel, some people fry a store...Once the capital and energy dissipate, the originally profitable electric car business also slowly declines.Ev observers tell us that there are at least 100 dealers in China that can sell 100,000 units a year, and they are still engaged in the electric vehicle business full-time, constantly improving the quality of the second network, continuously improving the profitability of the single, and constantly strengthening the local brand strength.The demise of the ring battery should be a wake-up call to everyone that it's safer to do one thing well and well than to spread your investments around.