Both WM Motor and HIPHI X have collapsed, and now Evergrande Auto is also struggling, entering bankruptcy reorganization proceedings. The collapse of Evergrande Auto was inevitable after Xu Jiayin's arrest.

From this, we can see the astonishing maneuvers of so-called top elites like Xu Jiayin and understand how they flee and take advantage of ordinary people.

1. WM Motor and HIPHI X have collapsed

As one of the earliest new energy vehicle (NEV) startups in China, WM Motor was founded in 2015 and was once known as one of the "Four Dragons" of new energy vehicle startups alongside NIO, XPeng, and Lixiang.

Founder Shen Hui once said, "WM Motor will definitely be one of the top three new energy vehicle startups in China's future." However, after burning through over 40 billion yuan in financing, WM Motor struggled to survive, let alone become a top player.

In October last year, after several failed self-rescue attempts, WM Motor had to enter bankruptcy reorganization proceedings.

In July this year, WM Motor was added to the list of defendants, with an execution target of over 642 million yuan. It seems that WM Motor's days are numbered.

Similarly, the Yancheng Court in Jiangsu Province recently decided to accept HIPHI X's pre-reorganization application.

Legally speaking, this does not necessarily mean the end of HIPHI X. If it can secure new investments, HIPHI X may still have a chance to recover.

However, since the beginning of this year, HIPHI X has tried various self-rescue methods, including close contact with state-owned automaker Changan, but ultimately, Changan backed out without offering assistance.

Founder Ding Lei's "three-month self-rescue window" has long passed, and it is unlikely that HIPHI X will be able to stage a comeback.

2. Evergrande Auto struggles to survive

Following WM Motor and HIPHI X, Evergrande Auto, another "big bomb," has also exploded.

Evergrande Auto recently announced on the Hong Kong Stock Exchange that the relevant local people's court has issued a notice ruling that its affiliated companies have entered bankruptcy reorganization proceedings. This means that Evergrande Auto is following in the footsteps of WM Motor and HIPHI X, sliding into a deep abyss.

In fact, since Xu Jiayin was taken into custody and Evergrande Auto's Executive Director Liu Yongzhuo was also arrested, Evergrande Auto's fate was already sealed.

It is not surprising that Evergrande Auto has finally reached the point of bankruptcy reorganization.

After seven or eight years of auto manufacturing, Xu Jiayin left behind a mess that cannot be solved easily.

As of December 31, 2023, Evergrande Auto's cumulative losses had reached 110.841 billion yuan, the highest in the industry, making it the biggest "bomb" in China's NEV sector to date.

At the same time, Evergrande Auto has delivered over a thousand vehicles, with each sale resulting in a loss of nearly 100 million yuan, which is incredible.

By the end of last year, Evergrande Auto's total assets were 34.851 billion yuan, while its total liabilities amounted to 72.543 billion yuan, more than double its assets, indicating severe insolvency.

3. The secrets of Xu Jiayin's debts

Evergrande Auto's debts of over 70 billion yuan are substantial, but compared to Evergrande Group's 2.4 trillion yuan debt hole, they are just a drop in the ocean.

What does 2.4 trillion yuan mean? It's equivalent to each of China's 1.4 billion people owing 1,700 yuan, which is equal to two years' worth of national defense budget and could fund the construction of about 48 aircraft carriers.

Where did all this money go? While causing such a huge mess for the country, society, and the people, Xu Jiayin personally profited greatly from it.

According to statistics, from 2009 to 2020, Evergrande Group distributed dividends totaling over 80 billion yuan, with Xu Jiayin and his wife taking away nearly 60 billion yuan. However, this is just the first step. Xu Jiayin has a second step.

Over the past decade, Xu Jiayin gradually transferred many of Evergrande's assets and claims to his wife Ding Yumei.

Then, in 2022, the couple underwent a "technical divorce." Even after Xu Jiayin's arrest in 2023, Ding Yumei had already "escaped" and settled overseas, taking those assets and claims with her.

After the divorce, legally speaking, the two are no longer related, and the assets and claims obtained by Ding Yumei, which are also Xu Jiayin's family assets, have been preserved. It's a well-calculated move.

But that's not all. Xu Jiayin has an even more cunning third step.

Over the years, Xu Jiayin has become a creditor of Evergrande Group by issuing overseas bonds. For example, Evergrande Auto issued $1.8 billion in overseas bonds in 2018, making Xu Jiayin an overseas creditor.

When Evergrande was doing well, Xu Jiayin could earn high interest. If Evergrande finds a buyer after the collapse, Xu Jiayin would still be a priority creditor when it comes to debt repayment.

In this way, Xu Jiayin not only ensures a steady income but also transfers his assets to overseas territories in a legitimate manner.

Obviously, talk of "jumping off a building" or "I can become penniless, but investors cannot lose a penny" are just acts performed by Mr. Xu, the actor.

The secrets of Xu Jiayin's debts lie in his various unscrupulous maneuvers, far beyond our imagination.