Then ** Chao Chung car companies get together and listed "to find money"

Editor's note:

From the listing of BAIC shares to the privatization of Denver by GAC, to the ongoing IPO applications by Chery, Lifan and ZTOTE... In order to consolidate the competitive advantage and complete the pursuit of overtaking, the car companies will invariably invest in the capital market in a difficult situation. The solution for the solution seeks the best listing route. Listing is of course the most convenient way of financing, but it also brings greater challenges to car companies: While expanding and strengthening industries, it must also achieve mature capital operations.

The capital market "find money" Fuqi firmly independent of the road

Recently, a person familiar with the matter told reporters from the "First Financial Daily" that Fujian Automobile Industry Group (hereinafter referred to as "FuChang") is seeking to raise RMB 2 billion from an investment bank to ease the funding problems in its development. The relevant person of Fuqi confirmed this, but said that the project is still in operation and related details cannot be disclosed yet.

Resolutely taking the road to independent development, after the Southeast Motor and Daimler gradually returned to the right track, they began to move frequently in various fields. For the large expansion of Fuqi, the funding issue has been placed at the forefront of development.

Pursue the rule of Zhongxing

The rumors of the reorganization of rumors and the reorganization of the blessing steam, after the Fujian Daimler and South East Automotive gradually on the right track, the rumor of reorganization has gradually dissipated, independent development has become its main tone.

According to informed sources, under the backdrop of the great era of the construction of the Haixi Economic Zone, Fuzhou is a rare large-scale state-owned enterprise for the privately-run economy in Fujian, which will play an important role in the construction of the Haixi Economic Zone. . The southeastern automobile under its flag is a model of cooperation between Fujian and Taiwan. With the strengthening of cross-strait cooperation, reorganization is almost impossible.

After the road to self-development was firmly established, Fuqi began all-out force and sought to achieve the governance of Zhongxing.

Recently, Fuqi High-profile launched a future production and sales plan and proposed a target of doubling the “300,000 for three years and 500,000 for five years”. The sales volume in 2013 will reach 300,000 and will reach 500,000 in 2015. .

To this end, Fuqi has begun to exert strength in various fields, involving the organizational structure, upstream industry chain, research and development and so on.

Fuzhou also restarted its engine project this year and hopes to develop into the group's core industry in the future. According to the introduction of Fuzhou, a project team has been set up and is in-depth exchanges with potential partners such as international multinational auto companies.

Informed sources said that the car engine project is a project that Fuqi has always wanted to achieve, but it has not been able to start without the Group's strategy being clear. After Lim Xiaoqiang took over as chairman, Fuqi gradually got on track and the project was again put on the agenda.

On June 18 this year, Fushun Automotive Engineering Research Institute was officially established. According to Fushun, the institute will be stationed in the high-tech zone of Fuzhou, and will be constructed in parallel with the Daimler R&D center in Fujian. Soon after its establishment, it began to provide research and development services for the Fuqi Xinlongma mini vehicle project.

Fuqi to get money

The automotive industry is a capital-intensive industry. For the recent substantial expansion of the blessing gas, funding is obviously a big problem.

At present, in addition to holding 13.52% of the shares of Golden Dragon Motors, Fuwa's subsidiary companies are unable to provide stable income. Although Fumler’s Fujian Daimler is on track, it is still far from the investment return period. The Southeast Motor has experienced a downturn for several years since it fell into losses in 2005. In 2009, it sold 85,000 vehicles and achieved a 103.6% year-on-year growth rate, eventually turning losses into profits.

Whether it is the establishment of a research institute or the start of an engine project, it requires a lot of investment. Moreover, Southeast Motor also proposed to increase the existing 150,000 capacity to 300,000 by 2013. With reference to the existing enterprise's capacity for the same factory construction, investment of at least 2 billion yuan is required.

In general, auto companies solve the funding problem is nothing more than three ways: bank loans, government funding and market financing. According to informed sources, most of the previous investment in Fuqi was completed by bank loans. The source said that Fuzhou is currently operating the financing from the investment bank. In this way, Fuqi will be able to solve the funding problem through multiple channels.

For China's auto industry, financing from capital markets such as investment banking has long been a case. In 2008, Lifan Motors raised $90 million from AIG. In 2009, Geely Automobile raised $330 million from Goldman Sachs.

Zhang Zhiyong, an automotive marketing expert, said that seeking investment bank financing and introducing strategic collaborators are indeed a market-oriented approach to solving capital problems. He believes that in the current market continues to grow bigger cake, the current competition is not your competition, but the competition to split the cake, such as Fuqi, the latecomers still have the opportunity to expand. Of course, the premise of a big increase is adequate financial support. (Ding Bin)

Whether it can complete the listing and listing before the end of this year and round the dream of listing the “first son” in the Chinese auto industry is an arduous task for the senior management of FAW Group.

Among the three major automotive groups in the country, SAIC and Dongfeng Group have already been listed on the Shanghai and Hong Kong markets. After that, the company’s expansion rate has been accelerating. According to statistics on car sales in the first seven months of this year, FAW’s ranking in domestic auto makers has fallen. After SAIC, Dongfeng and Changan. Changing the corporate mechanism through listing and alleviating financial pressure is a shortcut for FAW to regain its role as a “leader” in the automobile industry. It is also a “political mission” issued by FAW Group, which is a central state-owned enterprise, this year.

On July 14, as a listed subsidiary of FAW Group Holdings, FAW Car (000800.SZ) and FAW Xiali (000927.SZ) also announced that FAW Group will set up a new joint-stock company, and will not change the SASAC as Under the premise of the actual controller's identity, it is proposed that the equity of the above-mentioned subsidiary held by the Group be injected into the new joint-stock company as part of the assets of the Group's main business.

The announcement triggered various speculations about the listing of FAW Group. Whether it was a direct IPO issuing new shares or a backdoor FAW car, the parties had different opinions.

More analysts in the securities industry believe that the possibility of an overall IPO is relatively large. Apart from balancing the interests of various parties, large-scale financing can also be conducted. However, the drawbacks are that the approval procedures are relatively complicated, and the preparation period and listing approval time are relatively long.

FAW insiders believe that the possibility of backdoor FAW cars is not small, backdoor operation is simpler and saves time.

After the release of the announcement, further news about FAW listing disappeared. According to insiders from FAW Group, the senior executives of FAW Group who are feeling the pressure of listing are struggling to solve many problems encountered in the listing process. As the top secret of the group, only a few group executives participated in the operation and all were kept secret.

In fact, not only does FAW's listing plan have been a mystery, but also the difficulties that FAW needs to overcome have become more severe than those of Guangqi and Beiqi, which have already begun to emerge.

The industry believes that compared with other auto groups, the specific issues that FAW needs to solve are more complex. On the one hand, FAW is a big player and has poor internal integration capabilities. On the other hand, it involves many foreign companies, including Volkswagen, Toyota, and Mazda. , General Motors, etc., to achieve the package of quality assets one by one, it also takes a lot of time and effort. (Liu Xia)

“We can't say anything now. The company has regulations.” On August 25, Lifan Automobile insiders told reporters from the “First Financial Daily”. Since the submission of the A-share market IPO application in January of this year, Lifan Motors has entered a quiet period. Previously, Lifan Automobile Chairman Yin Mingshan who spoke to the media and Lifan Group executive vice president Guan Fengjin, etc., all kept silent and stopped talking about Lifan’s listing. After four years of listing, Lifan finally set foot on the final journey.

According to the news that the Lifan Group had leaked, Lifan Automobile applied for the listing of automobile and motorcycle assets in the form of IPOs on the A-share market. One of the reasons for its urgent listing is tight funding. The data shows that in 2009 Lifan Motors sold 60,000 vehicles. The two vehicle production bases it plans to build require a total of 4.5 billion yuan in construction funds.

Lifan Motors is part of the Lifan Group. The main business of the company is motorcycles, and its annual profit is about 200 million yuan. In 2005, Lifan Group entered the automobile manufacturing industry and successively launched Lifan 520, 320, 620, 520i and other products. In 2009, Lifan Motors sold 60,000 vehicles, an increase of 150% year-on-year.

Different from motorcycle manufacturing, “car manufacturing is a capital-intensive, technology-intensive industry that requires a lot of money.” Yin Mingshan said that no matter how to spend money on motorcycles, the money is inexhaustible. After entering the auto industry, money has not been enough.

According to Lifan Motor’s previous foreign statement, its initial funding source was mainly the nearly 900 million yuan accumulated in Lifan Group's motorcycle business. In 2008, Lifan Group obtained US$90 million of AIG Group’s share capital and bank loans. However, for automobile manufacturing, this part of the funds does not maintain the stable operation of a car company.

The person in charge of the Purchasing Department of a domestic automobile company told this reporter that according to the globally accepted theory, the annual sales volume of auto companies must reach more than 300,000 units in order to cross the breakeven line. The actual output of Lifan Automobile is lower than the production capacity. Long-term idle production capacity further increases the cost and expenditure, which also exacerbates Lifan Motor’s demand for funds.

According to the previously announced development plan of Lifan Motors, the company plans to invest 2.4 billion yuan in three phases to develop the sedan business and start construction of two major production bases in Inner Mongolia and Chongqing’s Daishan County. After the completion of the new plant, the overall capacity of Lifan Motors will reach 450,000 vehicles. .

But this also brought financial pressure on Lifan Motors. Yin Mingshan stated that Lifan Motors strives to issue 800 million to 1 billion shares and raises 1 billion to 3 billion yuan, raising funds for the manufacture of automobiles and motorcycles. (Tang Liuyang)

Future Development Needs to Get Rid of Overreliance on Guangfeng and Guangben

At 9:30 today, GAC Group (02238.HK) was formally listed on the Hong Kong Stock Exchange.

On August 24, Denway Automotive (00203.HK) and GAC Group jointly announced that the Hong Kong Stock Exchange has approved the withdrawal of Denway's listing status on August 25, marking the completion of the privatization of Denway by GAC. .

After eight years, Guangzhou Automobile Group finally achieved its overall listing.

Holding 50% shares of Guangqi Honda

GAC privatized Denway Motors through a share swap and listed it on the Hong Kong Stock Exchange by way of introduction. Through the introduction of the listing, GAC has no funds to inject, but it has obtained a breakthrough in resolving the problems left in the assets structure for many years. In particular, it will streamline the position of GAC Honda, one of the most important profit sources at present.

Previously, Guangzhou Automobile Group had a 37.9% stake in Denway Motors, and Denway Motors owns a 50% stake in Guangzhou Automobile Honda. By privatizing Denway Automotive, it is equivalent to Guangzhou Automobile Group directly holding 50% of the shares of Guangzhou Automobile Honda.

In the eyes of analysts, the financing platform is undoubtedly the most important gain for GAC listing. "At the same time of improving the capital structure, it will obtain an international financing platform."

China Merchants Securities auto analyst Wang Liusheng told China Business News that after the IPO, GAC not only enhanced its control of core assets, but also ensured its continued cash flow in the future and promoted the overall development of the Group in the future. Another analyst said that after the listing, the financing channel was opened, and GAC Group could, according to the demand for funds, submit a request to the board of shareholders for the financing of the board of directors. Guoyuan Securities also pointed out that GAC introduced its H shares on the main board of the Stock Exchange by way of introduction to increase liquidity and broaden its access to capital.

However, if the company is listed in the form of an introduction, it may face a situation where the supply of shares is insufficient. At the initial stage of listing, the stock price may fluctuate. An analyst believes that GAC and its investment bank should take corresponding measures to ensure that this situation does not occur.

Independent brands decide future development

The overall listing of the Guangzhou Automobile Group’s H-shares has also streamlined the asset relationship that has long plagued its development while accessing financing channels.

After clarifying the equity relationship, GAC Group, which has sufficient financing support, is very likely to take the lead in breaking out from the second-tier camp of the auto group. Recently, the GAC Group's actions have been continuous: the acquisition of Changfeng, in-house cooperation with Fiat, and the launch of independent brands. Biography." This series of actions all point to the same goal and move closer to the frontline camp.

Entering the frontline camp and becoming an automobile group that competes with FAW and SAIC are the goals of GAC's "12th Five-Year Plan." At present, Guangzhou Automobile has begun to take shape. Its business involves the passenger car segment, commercial vehicle segment, as well as upstream and downstream vehicles, parts and components, covering the entire product line and the entire industry chain.

The above analysts believe that the biggest shortcoming of GAC Group currently lies in over-reliance on the two joint ventures between Guangzhou Automobile Toyota and Guangzhou Automobile Honda. In this way, the speed of product introduction by the joint venture partners Toyota Motor and Honda Motor will affect GAC's profitability.

This year, GAC Group's reliance on GAC Toyota and GAC Honda has decreased after the increase in sales of GAC Hino, GAC Passenger Vehicle, GAC Gonow, and GAC Changfeng.

On September 3, Guangzhou Automobile's own brand "Xiang Chuan" will formally go offline. Analysts pointed out that independent brands will ultimately determine the future development of GAC Group.

Big Guangzhou Automobile Trader Zhang Fangyou

The overall listing of GAC marks the typical representative of this Chinese automobile joint venture era and is about to enter a new stage of development. All this clearly reflects the branding of Zhang Fangyou, chairman of GAC Group.

Since 1997, until now, Zhang Fangyou, a government-run businessman, has always been the top decision maker of GAC Group. Over the past 10 years, GAC Group has become a car group with a complete range of cars and a whole industry chain, thanks to its good cooperation with multinational giants such as Honda Motors and Toyota Motor Corporation. Its sales revenue exceeds 100 billion yuan, and its profit margin has always ranked high in the Chinese auto industry. The top spot.

However, Guangzhou Automobile, represented by Zhang Fangyou, is not willing to earn profits solely through joint ventures. It will be the ultimate appeal to expand GAC and become the automobile group that matches SAIC and FAW.

In 2009, under the background of the country's advocacy for the merger and reorganization of the automobile industry, it sought to expand the Guangzhou Automobile Group and started the pace of mergers and reorganizations. In May, Hunan Changfeng was reorganized to allow GAC to leapfrog from Guangdong to Hunan to form a cross-regional layout advantage.

The construction of the GAC Fiat project, the official operation of GAC Hino, the reorganization of the Gonow car, and the upcoming production of its own brand all indicate that GAC is opening its fast expansion pace and a large-scale integrated automobile group has taken shape.

It is not so much to take the opportunity to take the initiative and it is better to say that it is time to wait for brutal competition. Since the second half of last year, BAIC Group has taken actions frequently both in its overseas acquisitions and in the rationalization of its internal shareholding structure, and its listing financing is imminent.

A few days ago, Beijing Automotive Group announced that it will acquire all the stock assets of Guangzhou Baolong Group Light Vehicle Manufacturing Co., Ltd. in a restructured manner, and in the form of a wholly-owned subsidiary, a total investment of RMB 5 billion will be used to build the South China Base. Whether or not Baolong wins the bid for Beiqi does not mean that it will be listed in the future by *ST Baolong, and the outside world is full of speculation.

In May this year, Wang Da, general manager of Beijing Automotive Industry Holdings Co., Ltd., said in an interview with foreign companies that BAIC is in touch with investment banks and will soon announce plans for the restructuring of passenger vehicle assets, and will go to Shanghai or Hong Kong for listing.

In July, there was news that the Beijing SASAC has approved the establishment of "Beijing Automotive Co., Ltd." (hereinafter referred to as "Beiqi"). According to media reports, as the platform for BAIC's overall listing, it will be incorporated into the investment management division including BAIC Passenger Cars Division, Beijing Automotive Research Institute, Powertrain Division, New Energy Division, and joint venture management of joint ventures. , 51% equity of Beijing Auto Manufacturing Co., Ltd., and parts and related companies and other related assets. The above-mentioned plate basically includes all the high-quality assets of the passenger vehicles of BAIC Group.

BAIC has also completed two acquisitions for domestic automakers - the acquisition of Chongqing Yinxiang as a micro-vehicle base for Beiqi's foothold in the Southwest, and the acquisition of Guangdong Baolong Light Vehicle Company. At this point, BAIC Group has completed the strategic layout of its own-brand passenger cars in the four regions of South China, South China, Southwest and North China.

Whether it is accelerating mergers and reorganizations or vigorously developing its own brands, it cannot bypass the development bottleneck of lack of funds. According to industry estimates, in order to carry out vehicle model R&D and production base construction, BAIC needs to invest 33 billion yuan in the next three years.

Zhang Zhiyong, an automotive marketing expert, believes that in terms of the amount of financing, 2010 is clearly not the best time. If the stock market rebounds to more than 3,000 points, then the amount may be more than one-third, "but as soon as possible, the listing financing is an urgent task for BAIC. ."

On August 20, the announcement of Shougang Steel (000959.SZ) further clarified the composition of Beiqi Group, which is the listed entity of BAIC Group. Beiqi Co., Ltd. has a registered capital of 5 billion yuan. Six promoters contributed 10.643 billion yuan in assets and cash, including 2.5 billion yuan in cash.

Except Shougang Co., Ltd., which accounted for 18.31% of the total shares, Beijing Auto Holding held 51% of the shares, and the state-funded companies, Beijing State-owned Assets Supervision and Administration Commission, Beijing State-owned Assets Supervision and Administration Commission, State Administration Center and Beijing Capital Group each held 13.18%, 5.00%, and 4.76%, respectively. Beiqi Holding holds 41.21% of its shares in BAIC Investment, 51% of Beijing Automobile Manufacturing Co., Ltd., 100% of Beijing Automotive Power Co., Ltd., 100% of Beijing Automotive New Energy Automobile Co., Ltd., and the Passenger Car Division. Physical assets and some cash contributions.

“After Shougang’s shareholding in BAIC shares, the company’s plan and establishment time have been determined, but the plan and time for BAIC’s overall listing have not yet been set.” On the evening of the 23rd, Xu Heyi, chairman of Beijing Automotive Industry Holding Co., Ltd. disclosed that BAIC will It was officially established in mid-September.

The long-term listing process has reached the final critical stage. Various questions about the listing of BAIC have gradually become clear. How to kick the door is the biggest test that BAIC is now facing.