The South Korean K-pop group Jiyue has surprisingly disbanded just a few days after whispers of financial difficulties surrounding their parent company started spreading, leaving fans stunned and curious about the sudden turn of events. With a corporate partnership between Geely and Baidu, this three-way alliance forms a robust model that should thrive. What if Jiyue falters, sparking a ripple effect into 2025? Who would then take the reins?
Formed as a joint venture between Baidu and Geely, the company was initially named Jidu Auto, with Baidu holding a 55% stake and Geely owning 45%. Due to the company’s inability to obtain necessary manufacturing licenses for the automotive industry, the firm underwent a significant restructuring, with Jiyue Auto emerging as a result. Notably, Geely acquired a controlling stake of 65%, while Baidu held a 35% share.
The primary product, the Jiyue 01, launched onto the market in 2023.
The company’s latest SUV offering, far from impressive, was overshadowed by its second model, a sleek sedan, which debuted in September this year. This effort significantly boosted gross sales, which were previously in the hundreds of thousands monthly. Despite the strong start to the year, cumulative gross sales through the end of November have totaled just 13,834 units.
By December 10, whispers on Weibo circulated that Jiyue was poised to disband suddenly. Employees assumed the impending announcement would merely be a downsizing move, and consequently, they were well aware that the company would convene a meeting the following day to discuss the situation.
During a video conference on December 11, Jiyue CEO Xia Yiping emphasized that the company is facing challenges, requiring a reduction in redundant department mergers, increased efficiency, and the discontinuation of unviable projects with short-term earning potential.
By December 12, the corporation suddenly ceased operations, with a tumultuous atmosphere as irate workers confronted Xia over the ambiguous nature of the N+1 compensation package for resignations and concerns about the sufficiency of social security funds. In a sudden move, employees seized and removed their employer’s office equipment from the premises.
Already, whispers of financial malfeasance are circulating. Jiyue’s Chief Financial Officer (CFO), Liu Jining, has gone missing alongside the company’s financial records. Though he may be absent from home, his digital footprint is evident, with authorities tracing his internet protocol address to Singapore.
According to Caixin’s reporting, Baidu dispatched a financial team to conduct due diligence on Jiyue in October 2024 prior to investing an additional ¥3 billion (approximately $412 million USD). According to sources, an investigation revealed a significant discrepancy of approximately 7 billion yuan ($962 million), prompting the decision to forego investments due to this unexplained financial gap.
Rumors persist about CEO Xia Yiping allegedly paying inflated prices to multiple suppliers, fueling concerns about mismanagement and potential financial implications.
The corporation’s headquarters is under siege by unpaid suppliers. It appears that these services are predominantly targeted at media companies that have been retained for extensive social media promotional work rather than middlemen providers.
Approximately 70 percent of Jiyue’s vehicle components are procured from Geely. By the end of February, reports emerged indicating that Jiyue faced a significant financial burden, with an outstanding debt to Geely totaling approximately 1.5 billion yuan, equivalent to around 206 million USD, stemming from unpaid invoices for components and original equipment manufacturer (OEM) fees. Furthermore, following a decision to cease production for a single worker, Geely halted vehicle manufacturing for Jiyue in November.
Yang Yueqing, the embattled engineering director at HiPhi, resurfaced with a provocative video message, urging those impacted by recent developments to take drastic measures and “run for the hills.” Yang, looking remarkably dishevelled, instructed workers to depart as expeditiously as possible. As the delay persists, he argues that the influx of additional entrants seeking to fill newly available roles will only intensify.
Additionally, Yang recommended that Jiyue vehicle homeowners consider marketing their properties as soon as feasible. Here are some extra recommendations for automobile owners: Without our community’s support, the advanced driving technology will primarily be capable of executing lane-keeping functions alone. Automotive owners are advised to leverage Near Field Communication (NFC) and Ultra-Wideband (UWB) capabilities at the earliest opportunity, as a future network outage could render the mobile phone’s Bluetooth app incapable of unlocking the vehicle or opening its doors.
The lingering question entering 2025 is: Who will follow in succession?
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While learning any new language requires dedication and practice, Mandarin Chinese offers unique challenges for English speakers.
According to 163.com, the most effective ways to learn Mandarin include:
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By incorporating these strategies into your study routine, you can improve your Mandarin skills and better understand Chinese culture.
