Qoros Auto's Changshu Plant Fails Second Auction; Yao Zhenhua Alleges Undervaluation of Assets

Qoros Auto's Changshu plant was again unsold in its second auction on January 16. The starting bid for the asset was RMB 859.6 million—just 80% of the initial auction price of RMB 10.75 billion—but attracted only one registrant despite over 63,000 online viewers. On January 14, Yao Zhenhua, chairman of Baoneng Group, filed a real-name complaint alleging that the court had undervalued the company’s core assets—worth RMB 8 billion—at merely RMB 1.535 billion and had improperly expedited the auction process. The next day, the Publicity Department of Changshu Municipal Committee responded, stating that these allegations were unfounded. Qoros has been mired in a liquidity crisis since 2021 and is currently undergoing bankruptcy review. The company faces equity freezes exceeding RMB 35 billion, outstanding enforcement liabilities of over RMB 8.7 billion, and unpaid taxes amounting to RMB 540 million. Yao Zhenhua asserted that Qoros still holds significant restructuring value and could resume production within 10 months with an investment of just RMB 2 billion.