Chinese buyer Motor Sichi declares losses five times higher value of the whole company

A potential investor of the Ukrainian company Motor Sich in 2019 declared losses of 2.6 billion dollars, which is almost 5 times higher than the market value of the company itself (0.56 billion dollars).

 with reference to UMP.

These are Beijing Xinwei Technology Group Co., Ltd (Xinwei Group), which together with the offshore company Skyrizon Aircraft Holdings Limited (British Virgin Islands) and Ukroboronprom, in June 2019 applied to the Antimonopoly Committee of Ukraine for permission to concentration of shares.

On April 21, 2020, the company published its annual report for 2019 and officially announced that it was suspending trading in securities on the Shanghai Stock Exchange. The annual report, in particular, states that the company's annual losses for 2019 amounted to 18.436 billion yuan ($ 2.6 billion), which is more than 4.5 times the market value of the company itself (it is 4.06 billion yuan) , or $ 0.56 billion).
 

It is noted that the company ended with losses of 1.774 and 2.898 billion yuan also in 2017 and 2018, respectively.

It is expected that according to the rules of securities trading on the Shanghai Stock Exchange, within the next 15 working days from the date of publication of the annual report of Xinwei Group, the company will be removed from the listing, and thus increase financial pressure on Xinwei Group debt. will lead to the bankruptcy of Xinwei Group and other corporate rights owned by the ultimate beneficiary, Mr. Wang Jing.