On July 31, Golden Dragon Motor announced that the company had received approval from the China Securities Regulatory Commission on July 30th to approve the exemption of Fuqi Group from increasing the holding of 91625796 shares of the company due to the administrative transfer of state-owned assets, resulting in a total holding of the company 151458942. Shares, which account for approximately 34.22% of the company’s total share capital, should be subject to the obligation to tender.
This means that the equity transfer of Fuqi Automobile to Jinlong Automobile has been completed. One year later, the actual controller of Jinlong Automobile was again “upgraded†by Xiamen SASAC to the Fujian Provincial SASAC. After a 13-year battle, the equity war surrounding Jinlong Automobile ended with the arrival of Chairman Lim Xiaoqiang of Fuqi Group in Jinlong.
“This is not so much the competition for capital as it is to obey the general trend of reform of state-owned enterprises.†An insider who is close to the Golden Dragon car revealed to reporters that despite the unwillingness of the Xiamen Municipal Government, under the pressure of the higher level government, You can only choose to obey.
At present, the original Jinlong executives represented by Gu Tao have already left. Instead, the management team from Fuqi. After they took office, the primary task they faced was to build Jinlong Automobile into a model company for the reform of state-owned enterprises in Fujian.
Goal direct to the overall listing?
The use of Golden Dragon Motor as a listed company platform to integrate Fujian automobile resources is a long-cherished wish of the Fujian Automobile Administration Department. As early as September 2001, in order to make the Fujian automobile industry bigger and stronger, Fuqi had transferred 17% of the equity of Jinlong Auto from the Xiamen Finance Bureau and became the company’s largest shareholder.
However, after Fuqi entered the main Jinlong, there were many contradictions with Xiamen's state-owned assets investment company, the second largest shareholder representing the interests of local governments in Xiamen City. Until 2004, Ling Yuzhang and Wang Zhiyong on behalf of the Fuqi Group withdrew from the Xiaqi Automobile Board. The Fuqi Group did not withdraw from the real management of the Golden Dragon Auto but still retained the original shares.
In May last year, on the eve of Dongfeng Group's strategic reorganization of Fuqi Group, the Xiamen SASAC intentionally arranged an asset adjustment and transferred the 7.68% stake of the third largest shareholder to Shanghai Wing Group, making the company's shares in Golden Dragon more blessed. Steam, becoming the largest shareholder, has strengthened the local government’s intention to control and control Jinlong Motors.
However, at the end of last year, Jinlong Motors suspended its license for “major restructuring†for more than three months. After the resumption of trading, Shanghai Wing Group has signed the “Equity Custody Termination Agreement†with Fuzhou, and Fuqi has re-entered Jinlong as its holding company. shareholder.
After the plan was disclosed, Jinlong Motors' stock price was bullish on the capital market. Hongyue Securities analyst He Yadong believes that after the new management takes office, it will strengthen the integration of marketing and procurement to resolve the previous company's low gross margins. At present, Jinlong Motors has a larger sales scale than Yutong, but the company's net profit margin is only 1%. Compared with Yutong's 8% net profit rate, Jinlong has at least 3 times the market growth potential. This is the reason why the current capital market is pursuing Jinlong Automobile. one.
However, the capital market is more expecting that Fuqi will use the platform of Jinlong Auto to complete the overall listing and use the capital market to complete the enterprise system reform.
This is not an unprovoked guess. Almost simultaneously with Lian Xiaoqiang and Jinlong, the Fujian Provincial Government promulgated a plan to further improve the institutional mechanisms for promoting industrial development. It is said that by the end of this year, Fujian will promote the reform and restructuring of state-owned enterprises under the provincial government, and cultivate and develop industrial leading enterprises. The restructuring and cooperation between Fuqi and Mercedes-Benz and Xiamen Jinlong were listed as the key targets for reform.
An important path for the reform of state-owned enterprises is to use the capital market to promote the overall listing of enterprises and encourage state-owned enterprises to inject more assets into listed subsidiaries. In this respect, JAC has just completed the overall listing and undoubtedly provided a good sample for Fuqi.
In the “Acquisition Report†announced by King Long Motors on July 31, Fuzhou also promised to implement the three assets of Jinlong Automobile in phases, namely, the new Longma that the company may hold. 51% of the equity of the automobile, 50% of the equity of Southeast Auto, and 50% of the equity of other joint venture assets were all injected into Golden Dragon Auto.
“If this plan goes into effect, it is very likely that Jinlong Motor will become the overall listing platform for Fuqi Group.†An analyst of securities that asked not to be named told the reporter that although Fuqi promised to inject the three major assets are passenger cars, It can also be considered as an overall listing.
Game Dongfeng restructuring <br> <br> In fact, for some market competitiveness is not strong independent car prices, the reality does to the need of reform and restructuring. According to the aforementioned securities analysts, the analyst said that the "anti-monopoly" investigation conducted by the Development and Reform Commission on luxury car accessories will benefit the consumers, but it will indirectly increase the pressure for survival of autonomous car companies. However, even if it can predict As a result of this, the NDRC still takes action to show that the relevant government departments in the country want to use the market to enable the independent car companies to survive and eliminate the inferior. Under such a policy environment, all independent car companies with some ideas are unwilling to become the ones that have been reorganized or eliminated.
According to the latest statistics from the China Association of Automobile Manufacturers, in July, the market share of self-owned brand passenger vehicles has dropped for 11 consecutive months, and the market share has fallen below 20% to 17.7% for the first time. Some unscrupulous autonomous car companies are already facing life or death.
According to the disclosure in the “Acquisition Report,†Fu's sales of automobiles in 2012 and 2013 were only 114,800 and 132,300, which was almost equal to the monthly sales of North-South Volkswagen. In the policy environment in which the central government calls on auto companies to integrate essential resources through mergers and acquisitions and vigorously promote the development of independent brands, Fuqi needs to borrow state-owned enterprise reforms to integrate its resources and lay out its own future in advance.
In this regard, Fuqi also stated clearly in the “Acquisition Report†that the purpose of Jinlong’s entry into the company is to enhance the competitiveness and market share of Fujian’s state-owned auto industry in the country’s automobiles, and to effectively maintain and increase the value of state-owned assets.
After the equity transfer is completed, the planning of Fuqi Group is to complete the production bases of passenger cars and high-end light buses with Fujian Benz and Southeast Automotive as the core, large and medium-sized bus production centers with Jinlong Automobile as the center, and the Fujian New Dragon Horse. Automobile Co., Ltd. is the center of the three major industrial clusters of micro- and light-to-medium light truck production bases, and on this basis, it has improved the layout of industries such as vehicles, engines, and new energy vehicles.
"As for the strategic reorganization agreement that was signed with Dongfeng before, the current thinking of Fuzhou is likely to be to make itself bigger and stronger, and then to negotiate with Dongfeng as a bargaining chip." The above analysts said that Fuzhou is now facing the east wind. The attitude was just like Jin Long’s previous attempt at Fuqi, and he did not want to be reorganized, but perhaps one day, in the face of policy pressure, Fuqi also had to obey.