Core Viewpoint - Bohai Automotive Systems Co., Ltd. is facing significant financial challenges due to the bankruptcy of its German subsidiary BTAH, leading to a substantial loss in its 2024 financial results, with a reported net loss of 1.26 billion yuan [1][3][10]. Financial Performance - The company initially forecasted a net loss of between 400 million yuan and 495 million yuan for 2024, but the actual loss was 1.26 billion yuan, primarily due to the bankruptcy of its machining supplier and the subsequent decision to file for bankruptcy for its subsidiaries [1][3][4]. - The financial impact of the bankruptcy includes asset impairment losses, customer penalties, and employee compensation, with the company having already fulfilled 35 million euros of its guarantee obligations related to its subsidiaries [1][3][10]. Bankruptcy Decision - The decision to file for bankruptcy for Bohai International and BTAH was made on March 28, 2025, after the company assessed the financial situation and determined that continuing operations would not be viable [1][7][11]. - The bankruptcy was triggered by unforeseen events, including the ongoing Russia-Ukraine conflict and a decline in German automotive sales, which severely impacted BTAH's orders and revenue [4][12]. Legal and Regulatory Compliance - The company engaged Aderhold Law Firm to evaluate the legal basis for the bankruptcy filings, confirming compliance with German bankruptcy laws [14]. - The financial statements for Bohai International and BTAH will be prepared on a non-going concern basis, reflecting the change in operational status due to the bankruptcy [5][15]. Impairment Losses - Bohai International and BTAH have recognized significant impairment losses on their financial statements, with Bohai International reporting a total asset impairment of approximately 845 million yuan due to the bankruptcy [16][17]. - The impairment calculations were based on the liquidation values of the assets, with a comprehensive assessment conducted by independent valuation firms [17][21]. Future Outlook - The company anticipates that the bankruptcy proceedings will allow for a more structured resolution of its financial obligations and may help in preserving shareholder value in the long term [1][11]. - Ongoing monitoring and compliance with regulatory requirements will be essential as the company navigates through the bankruptcy process and its implications for future operations [10][14].