WM Motor's subsidiary debt of RMB 127.5 million sells for RMB 93,500; another RMB 139.6 million debt to be re-auctioned

At 16:54 on April 28, 24 accounts receivable claims held by WM New Energy Vehicle Procurement (Shanghai) Co., Ltd.—totaling RMB 127.5 million on the books—were sold on Taobao’s Alibaba Auction platform for a final price of RMB 93,500. The auction began on April 27 with a starting bid of just RMB 100, attracting 100 registered bidders and over 100,000 online viewers. After nearly 24 hours and 332 bids, the assets were won by a bidder surnamed Zhang. The company is a wholly owned subsidiary of WM Motor Technology Group and served as a core procurement platform within WM Motor’s supply chain. This auction was described as a “bare-bones sale,” as the administrator could only provide limited documentation and no original supporting evidence for the receivables. Related procurement and sales transactions were conducted through WM Motor’s internal system, which has since been deactivated and is no longer accessible; only electronic financial records remain available for reference. The debtor disputes the validity of these debts, collection efforts have been ineffective, and the auction notice explicitly highlighted multiple risks, indicating significant uncertainty regarding actual recovery of the amounts owed. Additionally, another RMB 139.6 million in external receivables held by a different WM Motor-controlled subsidiary will go up for auction on May 5, also starting at RMB 100. Both sets of receivables are being offered for the fifth time after repeated failures to sell in prior rounds, prompting the administrator to drastically lower the starting price. WM Motor was once among China’s “Big Four” EV startups, achieving annual sales exceeding 40,000 vehicles at its peak and raising over RMB 41 billion in cumulative financing. However, it failed in three separate IPO attempts and reported combined losses of RMB 17.4 billion from 2019 to 2021. The company entered bankruptcy liquidation proceedings in January 2024, with its assets suffering severe depreciation—largely attributed to intensifying industry competition and internal control deficiencies. In 2023, Shenzhen Xiangfei Automobile became an investor in WM Motor, proposing plans to resume production, pursue an IPO, and repay debts. By April 2024, WM Motor’s restructuring process had accelerated, with recruitment drives launched across multiple regions and certain departments already resuming operations.