The latest development in the flash crash of Jiyue Automobile. According to domestic media reports, we learned from many people familiar with the matter thatJiyue, Baidu executives and some employees plan to hold an online meeting at 16:00 today to negotiate on the social security and compensation issues of Jiyue Automobile employees.
"Jiyue currently has no money in its account, and Baidu has not directly intervened, so it needs negotiation and communication."A person familiar with the matter said,Baidu has 80% of the voting rights in Jiyue. Jiyue has approached Baidu many times to apply for employee compensation issues, but Baidu executives refused to answer the phone.
It is understood that regarding the current predicament of Jiyue, a Jiyue insider revealed that,The trigger of the incident was that the shareholders behind it no longer provided support and the company ran out of money..
He revealed that in the first half of this year, Jiyue had negotiated a new round of financing with shareholders. The original plan was to receive a financing of 3 billion yuan in the second half of this year. “It is basically a sure thing, and the company’s business is still being promoted.But when the company really had no money in its account and hoped that the 3 billion financing would be received as soon as possible, Baidu suddenly stopped selling. "The financing did not arrive, which directly led to the company's crisis.
Another media report stated that Baidu insiders informed that the company sent a financial team to Jiyue in October 2024 to conduct due diligence to prepare for a subsequent investment of 3 billion: "It turned out that Jiyue had a puddle of bad debts and a financial hole of up to 7 billion, and decided not to continue investing."
In response to the above statement, Baidu has not commented as of press time. Geely, another major shareholder of Jiyue, has not yet spoken out about the Jiyue crisis.