On October 10, WM Motor’s official Weibo issued a notice stating that the Shanghai No. 3 Intermediate People’s Court accepted WM Motor’s pre-reorganization application on October 7, 2023. WM Motor stated in the notification letter: In recent years, due to the impact of the epidemic, the sluggish capital market, significant fluctuations in raw material prices, and setbacks in obtaining operating and development funds, WM Motor has fallen into operating difficulties, but WM Motor will not lie flat, let alone fall.

The full text of WM Motor’s statement is as follows:

Dear WM Motor users, employees, partners and shareholders:

Since its establishment at the end of 2015, WM Motor has been aiming to provide high-quality products and excellent services, and is committed to providing the best new energy vehicle solutions that are "comfortable and affordable for the Chinese people". With the support and help of the governments of Shanghai, Wenzhou, Huanggang, Mianyang, Chengdu and other places, as well as all WM Motor users, employees, partners and shareholders, it has achieved rapid development. However, in recent years, due to the impact of the epidemic, the sluggish capital market, significant fluctuations in raw material prices, and setbacks in obtaining operating and development funds, Weimar has fallen into operating difficulties. We sincerely apologize for the inconvenience caused to everyone. However, Weimar will not lie flat, let alone fall. It hopes to actively save itself by adjusting corporate strategies, solving financial debt problems, and obtaining investors to participate in restructuring and development.

In order to ensure that the interests of all WM users, employees, partners and shareholders are protected to the greatest extent, upon application by WM Automotive Technology Co., Ltd., in view of the fact that WM Motor still has commercial value and rescue value, the corporate governance structure is still complete, and it has basic independent innovation and negotiation capabilities, and some creditors are also willing to reorganize. On October 7, 2023, the Shanghai No. 3 Intermediate People's Court accepted the pre-reorganization application of WM Automotive Technology Co., Ltd.

Pre-reorganization aims to give full play to the leading role of the market and the judicial guidance function, and to save enterprises and get rid of difficulties as early as possible. For enterprises and relevant stakeholders that are in trouble and still have the value of reorganization, consultation and negotiation should be carried out in accordance with the principle of autonomy of the parties' wishes to promote the improvement of the feasibility of reorganization and redevelopment. Weimar's pre-reorganization will introduce strategic investors from around the world to realize Weimar's rebirth.

Through the pre-reorganization process, we will thoroughly review the company's operations and business model, and comprehensively optimize various departments and business segments to reduce costs, improve efficiency and achieve sustainable development. We will fully communicate and negotiate with creditors, equity holders and potential investors to reach the best solution. At the same time, we will also actively cooperate with relevant parties to promptly, comprehensively and accurately disclose information on the progress of pre-reorganization to all stakeholders in accordance with the law.

During this period, we will continue to fulfill our contracts and responsibilities, fully protect your interests, and ensure that we continue to provide high-quality services to all Weimar users. We will pay close attention to market changes and industry trends, and continuously improve our products and services in order to rise again after the pre-reorganization.

We are very grateful to all WM Motor users, employees, partners and shareholders for their support and hard work in past cooperation. We firmly believe that with the assistance and guidance of relevant departments, the understanding and support of WM Motor users, employees, partners and shareholders, and the full efforts of WM pre-reorganization staff, we will usher in a rebirth and embark on the road of development again with a healthier and stronger attitude. With a new starting point and a new journey, all WM Motor users, employees, partners and shareholders are kindly requested to give WM Motor their trust, understanding and support as always.

Sincerely

salute!


Source: WM Motor Weibo

Recently, WM Motor Technology Group Co., Ltd. has added a new bankruptcy review case. The applicant is the company itself, and the handling court is the Shanghai No. 3 Intermediate People's Court.

Previously, documents showed that WM Motor owed 248 employees wages and remuneration totaling approximately 13.39 million yuan from February to May 2023. An administrative decision has been made by the Human Resources and Social Security Bureau of Qingpu District, Shanghai.

Risk information shows that the company has more than 20 pieces of information on persons subject to execution, and the total amount of executions exceeds 100 million yuan. In addition, there are multiple pieces of equity freezing information, and the equity of many companies it holds has been frozen. In March this year, WM Motor's 4.04 billion yuan stake in WM Motor Manufacturing Wenzhou Co., Ltd. was frozen; in August, WM Motor's 6 billion yuan stake in Hubei Xinghui New Energy Intelligent Vehicle Co., Ltd., the main body of WM's Huanggang factory, was frozen.