WM Motor clarifies the company has not filed for bankruptcy and the founder has not fled.

WM Motor denies bankruptcy filing and founder's departure

[PhoneAuto News] Recently, there have been reports that Shen Hui, the founder and chairman of WM Motor, has left the country, leaving behind nearly 40 billion yuan in investments and debts, as well as unpaid salaries for WM Motor employees.

In response, WM Motor clarified on Weibo that the company has not applied for bankruptcy. Currently, it is in the pre-restructuring stage accepted by the Shanghai Third Intermediate People’s Court. Shen Hui, the founder of the company, studied in the United States in 1991 and worked and lived in various European and American cities for many years. Recently, his focus has been on overseas matters, so there is no situation where the founder has run away overseas.

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The following is the full statement:

In response to recent false statements, the company makes the following clarifications:

1. WM Motor has not applied for bankruptcy! Currently, it is in the pre-restructuring stage accepted by the Shanghai Third Intermediate People’s Court. Pre-restructuring is different from bankruptcy restructuring. It is a self-rescue measure conducted in the early stages of a company’s difficulties, aiming to introduce strategic investors through debt restructuring, avoid bankruptcy, and achieve rebirth and transformation.

2. Currently, the company’s core operational positions are normal. After the National Day holiday, some apps in the car’s system did experience abnormal usage. The company established an emergency team and resolved the related issues within 48 hours of discovery, restoring normal usage. If there are similar situations in the future, please contact us immediately.

3. The company’s current focus includes after-sales service, resumption of work and production, export business, overseas cooperation, international financing, and introduction of strategic investors. There has been some progress, and we will seek appropriate timing to disclose it to the public. Shen Hui, the founder of the company, studied in the United States in 1991 and worked and lived in various European and American cities for many years. Recently, his focus has been on overseas matters, so there is no situation where the founder has run away overseas.

4. The information circulating on the internet about WM Motor’s 40 billion yuan financing and other amounts is all false information. Most of the reports have confused financing amounts with rights and debts. The relevant financing and operating conditions were disclosed in the company’s prospectus.

Currently, WM Motor is in a critical stage of pre-restructuring, and the company will make every effort to protect the rights and interests of users, employees, suppliers, dealers, and investors. We appreciate the media and the public’s attention. For false information and rumors, we will reserve the right to pursue legal responsibilities against the publishers, reposters, spreaders, and related parties who fail to timely delete the rumors, and will maintain the company’s reputation and image through legal and compliant means.

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