A collapse event usually refers to a sudden serious financial crisis in a market or enterprise, which leads to the inability to continue operations or faces bankruptcy. There are Luna collapse events and FTX collapse events in the virtual circle, and collapse events often occur in the real economy. Take Jiyue Automobile as an example. In December 2024, Jiyue Automobile suddenly collapsed, thousands of employees were suspended and laid off, and the company was in a state of shutdown. The cause of the incident was that Jiyue Automobile's capital chain was broken, resulting in the inability to continue to pay employee wages and supplier payments. Xia Yiping, CEO of Jiyue Automobile, announced to all employees in a video conference that the company has entered the 2.0 stage of entrepreneurship, drastically cut expenses, stopped paying social security, and gave two options: voluntarily resign to receive N+1 compensation, or choose to continue working but without salary. The impact of the collapse event on enterprises and employees is huge. Jiyue Automobile's employees are facing unemployment, and many suppliers are also recovering their debts. For example, China Mobile Shanghai Branch is recovering about 2.05 million yuan in arrears from Jiyue for its Internet of Vehicles business, and has initiated the litigation process. In addition, the sudden collapse of Jiyue Automobile has also triggered speculation about the reasons behind it. It is reported that Baidu sent a financial team to conduct due diligence and found that Jiyue had a financial hole of up to 7 billion, which led Baidu to decide not to invest any more money.
The collapse incident is of great warning significance to enterprises and the market. When facing a financial crisis, enterprises should take timely measures to control expenditures and communicate with shareholders and partners to avoid sudden collapse from causing greater losses to all parties. In addition, enterprises should strengthen financial management and risk control in daily operations to ensure the stable flow of funds and avoid similar incidents.