WM Motor's RMB 127.5M Receivable Sold for RMB 93,500—No Original Documents, Recovery Not Guaranteed

On April 28, 2024, at 16:54, a portfolio of 24 accounts receivable claims totaling RMB 127.5 million owed to WM Motor New Energy Vehicle Procurement (Shanghai) Co., Ltd. was sold for RMB 93,500 on Taobao’s Alibaba Auction platform. The auction started with a reserve price of RMB 100 and had an increment of RMB 100 or multiples thereof. After nearly 24 hours and 332 bids, the winning bidder—identified only by the surname Zhang—secured the assets. The auction attracted 100 registered bidders and over 100,000 online viewers. The debtors named in these receivables include well-known automotive suppliers such as Bosch Automotive and Hella Electronics. WM Motor New Energy Vehicle Procurement (Shanghai) Co., Ltd. is a wholly owned subsidiary of WM Motor Technology Group Co., Ltd., established in July 2018 with a registered capital of RMB 100 million. It served as WM Motor’s core procurement platform within its supply chain. This auction was conducted on a “bare” basis: the administrator provided only the court ruling accepting the bankruptcy petition, the decision appointing the administrator, the assignment agreement for the receivables, and related notices. Original documentation—including contracts, promissory notes, and shipping records—was unavailable. All relevant transactions were processed through WM Motor’s internal system, which was decommissioned and rendered inaccessible by the end of 2022, leaving only electronic financial records. Some debtors have responded denying any outstanding debts or refusing to accept collection notices, casting significant doubt on the validity and recoverability of these receivables. The auction notice explicitly warned that the administrator makes no representations or warranties regarding the authenticity or collectability of the claims, and bidders assume all associated risks. Recovery of funds depends entirely on whether debtors acknowledge the obligations and the bidder’s own collection capabilities. On the same day, another WM Motor subsidiary—WM Motor New Energy Vehicle Sales (Shanghai) Co., Ltd.—announced that a separate portfolio of 123 receivables totaling RMB 139.6 million will go up for auction on May 5, also starting at RMB 100. Both portfolios are being offered for the fifth time; previous attempts ended in failed auctions, prompting drastic reductions in starting prices to accelerate asset liquidation. Public records show that WM Motor was founded in 2015 and once ranked among China’s “Big Four” EV startups. It raised over RMB 41 billion in cumulative financing but failed three times in its IPO attempts. From 2019 to 2021, its attributable net losses totaled RMB 17.4 billion. In 2022, it delivered fewer than 30,000 vehicles; by 2023, all its factories had ceased production, triggering widespread reports of unpaid wages and supplier arrears. In January 2024, Shanghai courts officially accepted its restructuring application. According to audit reports, WM Motor Technology Group holds total assets of RMB 3.988 billion against liabilities of RMB 20.367 billion. During the bankruptcy proceedings, many of WM Motor’s key assets—including manufacturing facilities and land-use rights in Shanghai and Wenzhou—have suffered severe depreciation, often selling at just 30% or less of their appraised values, with some lots failing to attract any bids. In September 2023, Shenzhen Xiangfei Automobile Sales Co., Ltd., acting as the restructuring investor, announced it would take over four WM Motor entities, pledging RMB 1 billion in investment to restart production of the EX5 and E5 models, targeting annual sales and production of 10,000 units. The plan also outlined launching more than 10 new models within five years and preparing for an IPO by 2028. In April 2024, WM Motor accelerated its restructuring efforts, simultaneously expanding recruitment across its Shanghai, Wenzhou, and Shenzhen hubs. Its original design and procurement center in Qingpu, Shanghai, has restored staffing to approximately 100 employees and resumed R&D and supply chain coordination functions.