What happened to Bishan Landai Group?

The litigation cases involving Bishan Landai Group Company are mainly litigation cases filed by the company against relevant customers regarding payment disputes. Based on the operating conditions of relevant customers and the progress of the above cases, the company made full provision for asset impairment provisions for accounts receivable, inventory, etc. of relevant customers in 2019 and 2020 respectively.

The per capita salary of Bishan Landai Group is significantly lower than that of the same industry.

The company announced that 38 employees of Landai Transmission once again filed a lawsuit with the People's Court of Bishan District, Chongqing over a labor dispute. In fact, previously, 29 people including Xie Chuanqiang, an employee of Landai Transmission, had applied for arbitration regarding labor disputes such as unfixed-term labor contracts, unemployment insurance, and labor remuneration. On July 2 and July 5, the Chongqing Bishan District Labor and Personnel Dispute Arbitration Commission issued an arbitration award, in which Landai Transmission paid the applicant Zhang Bo the minimum wage difference of 358.67 yuan in August 2018, and the remaining labor and personnel arbitration applications were was dismissed.

Six subsidiaries of Bishan Landai Group suffered losses.

The salary of Landai Transmission employees has not increased significantly in recent years, perhaps because of its weak profitability. The main business of Landai Transmission is the research and development, production and sales of passenger car transmission gears and housings and other parts, transmission assemblies, and motorcycle main and countershaft components. After its listing, Landai Transmission showed an increase in revenue but not profit, so the next year the company successively acquired 52% of the equity of Dihan Machinery for 75.36 million yuan and 32.14% of the equity of Landai Transmission for 300 million yuan. Acquisitions have boosted performance. In 2016, its revenue and net profit were 1.161 billion yuan and 129 million yuan respectively, a year-on-year increase of 48.16% and 73.73% respectively. However, Landai Transmission's performance declined again in 2017. In 2018, the company spent 76.95 million yuan to acquire 10% equity of Taiguan Technology, and sold 100% equity of Landai Real Estate for 25.71 million yuan. However, this time the company only operated through this capital Barely turning a profit, the net profit in 2018 was 2.7645 million yuan, but after deducting non-net profit, the company lost 14.8232 million yuan.

Perhaps Landai Transmission has anticipated a sharp decline in performance this year.