Chinese EV Startup WM Motor Applys for Bankruptcy Review

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On October 10th, we found from the official inquiry of Qichacha/Tianyancha App that Weima Automotive Technology Group Co., Ltd. has added a bankruptcy review case, with the applicant being Weima Automotive Technology Group Co., Ltd (WM Motor). According to risk information, the company has more than 20 executed person information, with a total executed amount exceeding 100 million yuan. In addition, there are also multiple equity freeze information.

In September of this year, Kaixin Auto (NASDAQ KXIN) announced that it had signed a non binding letter of intent with WM Motor Holdings Limited (WM Motor), planning to issue a certain number of new shares to acquire 100% of its shareholders’ equity. Kaixin Automobile is under Kaixin Automobile Holdings. In 2015, it entered the second-hand car industry as an automotive finance business. In 2017, it officially entered second-hand car retail. Listed on NASDAQ in 2019. In August of this year, it just announced the completion of its acquisition of Morningstar Automobile Company and officially entered the field of new energy vehicle manufacturing.

Looking back at the history of WM Motor’s car manufacturing, WM Motor, along with NIO and Li Auto, previously belonged to the first tier of Chinese EV startups and conducted 12 rounds of financing from A to D, with a total financing of approximately 41 billion yuan. Star companies such as Shanghai state-owned investment platform, SAIC Group, Tencent Investment, Baidu, Sequoia Capital, and Hongta Group have all invested in WM Motor. In terms of sales, WM Motor has also performed commendably, delivering a total of 44000 cars in 2021, doubling year-on-year and reaching its peak. The industry believes that it is expected to become the “number one new energy stock on the Science and Technology Innovation Board”. But in 2022, WM Motor’s sales plummeted, with a total sales volume of only 29400 vehicles, a year-on-year decrease of nearly 30%. Subsequently, there were fewer and fewer news about WM Motor, with some claiming that it would enter a “silent period for listing”, but there were also rumors that it would “go bankrupt”. In 2023, the turmoil became increasingly fierce, with news coming about consumer rights protection, the freezing of WM Motor’s assets, and the fact that Beijing has only one store left.

WM EX5 Pro

Established at the end of 2015, WM Motor is a new energy intelligent vehicle enterprise with full capabilities in design, research and development (hardware and software), supply chain management, vehicle and battery pack manufacturing, online digital marketing, offline sales and services, and automotive finance. At present, WM Motor has two industrial 4.0 standard intelligent manufacturing bases: Wenzhou production base and Huanggang production base. WM Motor has successfully developed and delivered four models in bulk: E.5, EX5, EX6, W6, and is about to deliver M7. We will continue to monitor more information about the brand.