The Largest Domestic Auto Dealer Guanghui Auto Faces Multiple Crises

TapTechNews August 21st news, according to Blue Whale News report, the largest domestic auto dealer, Guanghui Auto, has encountered problems such as difficulty in taking delivery of cars, wage arrears, and store closures.

Recently, consumers have successively reported that they have encountered difficulties in taking delivery of cars after purchasing at 4S stores under Guanghui. Only one of the consumers' 4S stores has more than forty cars that cannot be taken away.

Difficulty in taking delivery of cars has occurred in many places such as Jiangsu, Shandong, Guangdong, Liaoning, and Anhui, involving multiple brands such as Mercedes-Benz, BMW, Volvo, and Jaguar Land Rover. The involved 4S stores are all dealers under Guanghui Auto, and the problem of difficulty in taking delivery of cars is mainly concentrated in July and August.

Consumers disclosed that most of the responses given by the stores are 'financial handling, bank issues, financial difficulties', but the actual reason is mostly that the car certificates have been mortgaged.

In addition, the stores under Guanghui in the above-mentioned places all have wage arrears situations, with a wide-ranging impact. Although these stores with unpaid wages have not closed yet, some stores have been unable to operate normally and are in a state close to closure.

According to TapTechNews' previous report, on July 17 this year, Guanghui Auto opened with a limit-down and closed at 0.78 US dollars/share with a decline of 10.34%. Due to its continuous 20 trading days below 1 US dollar, triggering the delisting clause based on face value.

The performance forecast disclosed by Guanghui Auto on the evening of July 12 shows that it is expected that the net profit attributable to shareholders of the listed company will lose 583 million to 699 million US dollars in the first half of 2024, compared with a profit of 601 million US dollars in the same period last year; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses will lose 756 million to 872 million US dollars, compared with a profit of 333 million US dollars in the same period last year.