Deeply trapped in the "advertising door" scandal of 1.1 billion yuan, the multi-party game of the BYD incident is a loser?

In the past three years, more than 30 advertising companies have signed contracts with Li Juan, the general manager of East China Marketing Department of BYD Co., Ltd. (002594.SZ, hereinafter referred to as “BYD”), to advance about 1.1 billion yuan. Conducting marketing activities, at the end of the day, it turned out to be "a void."

On July 16, BYD issued a notice saying that after verification and confirmation, Li Juan and Wang Chuan’s “Chen Zhenyu” were not employed or resigned by BYD, nor were BYD’s directors, supervisors or senior management personnel. BYD never authorized the above personnel to BYD is engaged in business activities and signed a contract on behalf of BYD. The seal used by Li Juan in the name of BYD and Shanghai BYD Electric Vehicle Co., Ltd. was forged. It used the identity of BYD employees and signed a contract with a forged seal. It has been suspected of committing a crime. BYD has reported the case to the police. The police have Intervene in the investigation.

In response to this response, a number of advertising providers raised doubts in an interview with China Business News. They said that they had visited the headquarters of BYD with Li Juan. The head of the headquarters also attended the corresponding promotion activities, but BYD accepted After the promotion of the service, "turning your face and not recognizing people."

"I just finished the transcript of the Shanghai Pudong Economic Investigation Detachment and asked me to provide some related contracts. There is no progress yet." On the evening of July 19, the relevant person in charge of Shanghai Jingzhi Advertising Co., Ltd., one of the suppliers, told the reporter. I am still waiting for the latest situation in Shanghai, and other advertising companies whose interests have been damaged have already approached BYD headquarters. BYD only gives two hours to let the suppliers provide project contracts, etc. Did not say when to give feedback.

Suddenly the incident? Li Juan is still picking up the business six days ago.

Our reporter was informed in an interview that on June 26, Li Juan surrendered to the Shanghai Public Security Bureau on the grounds that her source of 12 million yuan was unknown. On June 20th, 6 days ago, it also signed an agreement with an advertising supplier in Baoshan District, Shanghai, in the second phase of the Lujiazui International Finance Center in Shanghai. The supplier was responsible for implementing BYD’s Silk Road in Shaanxi Satellite TV. The promotion business of the brand Wanlihang program.

The legal representative of the above company told reporters that the program started from Shaanxi and has been driving to the destination of the United Kingdom. During this period, it will meet with leaders of various countries and hold a series of large-scale brand exhibitions. The accompanying team is mainly composed of BYD Auto. On June 20th, Li Juan’s BYD team, advertising supplier and Shaanxi Satellite TV representative signed a contract with Shanghai BYD Company in the second phase of the IFC.

The legal representative also revealed that the company has cooperated with Li Juan, the general manager of the East China Marketing Department of Shanghai BYD Company since February 2018, and has undertaken three projects. The company has invested all the funds and foreign aid funds downstream of the BYD activities. Supplier for pre-event preparation. “The amount of advance payment was more than 30 million yuan, and the account period of 210 working days was accepted, that is, BYD settled after the event ended.” The legal representative said that the previous visit to the IFC Shanghai BYD Company only reported downstairs. Go to BYD and you can go upstairs.

However, on the afternoon of July 16, the reporter came to Shanghai Lujiazui International Finance Center Phase II to find out where Li Juan had rented an office for Shanghai BYD Electric Vehicle Co., Ltd., but did not see the Shanghai BYD Company. The staff at the front desk of the building said that Shanghai BYD Company was originally on the 8th floor, but it was evacuated half a month ago. The company is currently unmanned. “The company’s registration name was BYD, and everyone who came to work said that it was going to BYD.”

The front desk of another company working on the 8th floor also told reporters that Shanghai BYD Company had all moved out at the end of June and went to the unknown.

In addition, the reporter rushed to No. 999, Xiangyu Road, Songjiang District, Shanghai, and visited the BYD factory in Shanghai with relevant questions. Affected by the "Advertising Gate", the security measures of the factory became strict, and outsiders were not allowed to enter without consent. A security guard said that a point-to-point contact must be confirmed before entering the park.

Who will pay the bill? Is the executive shuffling in the bucket or is it a liar?

It is worth noting that on the afternoon of July 16, Shanghai Jingzhi Advertising Co., Ltd., Shanghai Speeden Advertising Co., Ltd., Shanghai Weirui Advertising Co., Ltd. and Shanghai Yuhong Culture Communication Co., Ltd. jointly held a media conference in Shanghai. In terms of competitive advertising, during the cooperation with Shanghai BYD Company, in order to ensure the quality of the event and the satisfaction of dealers in various regions, Jingzhi Advertising actively cooperated with “Shanghai BYD”. In the early stage of the event, actively communicate with dealers and regional managers to confirm the overall process and overall quality of each event, and the network promotion in the later stage of the event. If “Shanghai BYD” is a false existence, then the managers and 4S stores in each region, why do they connect with the company, how to release event news on the official public number and each network later in the event?

“As a supplier of static exhibitions in the East China and North China shopping malls, Suken Advertising has performed more than 30 activities. Outdoor advertising includes Tangshan High-speed Railway Station and the airport, completes the plane shooting of BYD's new energy vehicle advertisement, and BYD's new energy vehicle TVC advertisement. The video shooting, as well as the production side of Guangdong Satellite TV "Zero Food God", the total amount of the contract is nearly 30 million yuan." For the content of the BYD release, Quicken advertising can not understand.

It is understood that Li Juan previously stated that the reason for his existence in Shanghai BYD is that the senior management of the company headquarters shuffled, and those who were dissatisfied with the work of the headquarters market department sought a separate portal and gradually replaced the marketing department at the headquarters.

In response, the above-mentioned advertising supplier confirmed to the reporter that in the business communication with Li Juan, the superior was a middle-aged man named Chen Zhenyu. In the media report, Chen Zhenyu was called "the invisible shareholder of BYD" and "Li Ke's white gloves."

However, according to public reports, Li Ke, senior vice president of BYD Group and president of BYD North America, responded on July 16: "This fact is making me angry, far away when the United States is working hard. It was inexplicably framed by the swindlers! The police must take out Chen Zhenyu, Song Bo, Li Juan, and the greasy advertising company behind them, and sternly punish such deceptions! Otherwise, the heavens will be difficult!"

Many insiders have doubts about this, and the progress of the incident has become confusing. For the existence of Shanghai BYD Li Juan, Party A (BYD) does not know, such a large amount, who will pay for the bill?

As for many questions, the reporter contacted BYD. As of press time, the relevant person in charge did not respond to specific questions. It only said that after consultation with the leaders, the company has no more information on the matter and can disclose it. The incident is still under investigation. At this stage, the information disclosed in the announcement is still subject to the approval.

confusing? All parties claim to be victims

More than 30 suppliers have lost their money, with a maximum of 100 million yuan. No doubt suppliers are victims. Li Juan, the core figure of the incident, has not yet confirmed which part of the profit he is making. With the loss of the "Chen Zhenyu" behind the scenes, whether Li Juan is also a victim of the murder is not known.

However, what is certain is that the famous football club Arsenal is the most innocent in the whole incident. As early as April this year, Arsenal announced an agreement with BYD, the BYD Tang model will become the club's official car and bus partner.

At that time, no one doubted the authenticity of the transaction until Li Juan’s “double-sided” identity was exposed. In an official statement, Arsenal said the deal was signed with Arsenal's chief business officer, Vinai Venkatesham, and BYD's brand and public relations director. The club is currently talking to BYD officials. "We are investigating the current state of the incident and discussing the matter with the BYD senior representatives who participated in the cooperation. The club will not comment on this incident."

BYD, from its many statements, the company has been in a state of “uninformed” for three years and considers itself a victim. The structure of the car company is complicated. Therefore, in the eyes of many insiders, it is not excluded that the internal management of BYD is not in place, and there is a situation of “inner ghosts”. It is indeed possible for the company headquarters to be unaware of it. A car media commented that BYD’s “Advertising Gate” incident was only the beginning, but it opened a door for people to know the corruption of the auto industry.

Regardless of the outcome of the case, it is an urgent question for BYD to properly handle the supplier's arrears, conduct internal inventory, and repair brand image damage.

It is worth mentioning that BYD’s goodwill has been affected by the advertising door incident. On July 16, BYD announced that its A shares opened lower by 2.5%, and the closing price fell 4.35%. In the following days, BYD's share price continued to fall. On July 19, the company's share price closed at 42.15 yuan, down 2.66%.