Shanghai Automobile Overall Listing Plan Announced &Nbsp; 28 Billion 500 Million Asset Injection

Concerned

According to the plan, the Shanghai Automotive Group Limited by Share Ltd (600104.SH) intends to purchase SAIC and Shanghai Automotive Industries Limited (hereinafter referred to as industrial limited) to buy their own shares and other assets in independent parts business, service trade business, new energy source vehicle business related companies, in a non-public offering.

Including Anji Automobile Logistics Co., Ltd., Shanghai Automotive Industry Sales Co., Ltd., Huayu automotive system Limited by Share Ltd (referred to as Huayu automotive, 600741.SH), Xinyuan power Limited by Share Ltd and other assets will be injected into SAIC's listed companies.

According to the plan, the estimated value of the above 22 main assets and part of the land rights and claims is 28 billion 560 million yuan, the issue price is 16.53 yuan / share, the number of shares to be issued is about 1 billion 728 million shares.

Shanghai motor began its suspension in February 14th this year, closing at 18.45 yuan a day before the suspension.

Shanghai motor today

Overall listing and ending war

If the restructuring is successful, SAIC Group's operating assets except real estate will be all listed, and the overall listing is officially accepted. At the same time, SAIC has also become the pioneer of the reform of state owned state-owned enterprises in Shanghai.

After the completion of the restructuring, SAIC and Industrial Limited will share the share of Shanghai motor vehicles from the current 72.95% to 77.21%.

Shanghai automobile has described this asset as a "smile curve" that speeds up the upgrading of the value chain of the automotive industry: the front end of the curve includes technology research, brand and product development, and the latter end is procurement, manufacturing as the middle end, marketing, sales and service.

After preliminary calculation, the net profit of the injected assets in the 2010 year is about 2 billion 600 million yuan, and the earnings per share of the listed companies are expected to be slightly higher than those before the reorganization.

Automobile industry analysts believe that although the restructuring of Shanghai automobile price share is not large, but in the long run, is conducive to the development of Shanghai's automobile.

According to the analysis, in the long run, with the continuous expansion of the scale of Shanghai's auto operation and the comprehensive promotion of commercial vehicle business, especially the further promotion of the brand building of the independent commercial vehicle based on Datong, the acquisition of related independent parts manufacturing business will help to enhance the synergy effect of the listed companies.

High-end extension to the industrial chain

Shanghai automobile said that the main assets in the paction were closely related to the development of the main business of the company.

The purpose is to give full play to the synergy effect of the development of Shanghai's auto parts and the development of China's auto parts, expand the potential automobile aftermarket business, reflect the overall competitive advantage of the automobile industry chain, enhance the capability of independent innovation, speed up the development of independent brand cars and new energy vehicles, raise the assets scale, optimize the asset allocation, and enhance the risk resisting ability of the company.

Shanghai automobile secretaries Wang Jianzhang said yesterday that after the second consecutive year of China becoming the world's largest new car market, it is expected that in the coming period, the demand potential of China's auto market will be further released.

In 2006, Shanghai motor became the largest vehicle company in a listed company. In 2008, SAIC's sales volume was 1 million 826 thousand, and by 2010, SAIC's sales volume was 3 million 583 thousand, almost doubled over the past two years.

Wang Jianzhang said that the national "12th Five-Year plan" outline stressed the need to promote structural adjustment and industrial upgrading of the automobile industry, strengthen the R & D capability of the vehicle, realize the autonomy of key parts and technologies, improve the level of energy saving, environmental protection and safety technology, and cultivate strategic emerging industries such as new energy vehicles.

She said that this has pointed out the direction for the automotive industry to speed up the construction of independent innovation system and the development of new energy vehicles.

Huayu automobile replacement controlling shareholder

According to the plan, there will be a total of 22 enterprises in Shanghai, including the Anji Automobile Logistics Co., Ltd., the Shanghai Automobile Industry Sales Co., Ltd., the new power Limited by Share Ltd with the new energy business as the main source, and the China based automobile with the sole component business.

Among them, where to go is the biggest concern of this reorganization.

Earlier, the industry speculated that SAIC's spare parts assets would be injected into China's auto industry.

According to the plan, Shanghai automobile purchased 60.1% of China Automotive Group's holdings.

After the completion of the paction, China auto is still an independent listed company, but the controlling shareholder is pformed from SAIC to Shanghai automobile.

According to the Shanghai motor bulletin, Huayu automobile is defined as "the independent supplier of auto parts manufacturers with the most domestic products, the best varieties, the best cooperation development, the strongest application and development capabilities, the largest customer coverage and the largest business scale".

It is understood that the injection of SAIC's spare parts business assets in addition to Huayu cars, as well as NAC mold and Donghua industrial underside of the company engaged in commercial vehicle parts manufacturing and other equity.

Wang Jianzhang said that the relationship between vehicle and parts is becoming increasingly close.

This restructuring will speed up the upgrading of Shanghai's independent innovation capability and enhance the synergy effect of vehicle and parts.

The company will synchronize the development of vehicle and parts, improve the response speed of parts business to vehicle production, improve the speed and efficiency of independent brand research and development, and rapidly enhance the competitiveness of independent brands.

At the same time, with the help of the Shanghai vehicle platform, the synchronous development will be conducive to the rapid upgrading of the development level of the automotive industry in China, and expand its market outside the industry and enter the international market for its "zero level", "Neutralization" and "internationalization", so as to create conditions for large-scale creation.

Profit space of service trade

Trade in services is one of the highlights of the injection of assets.

The announcement indicates that the service trade business assets to be injected include Anji logistics, SAIC Beijing, industrial sales, procurement center, China Automotive Investment and import and export company, asset management company and subsidiary company of Donghua industry under the service trade business.

In terms of specific business, it can be divided into six business sections: automobile logistics, sales service, car leasing, information service, international trade and creative energy saving.

Anji logistics is currently the largest and professional third party logistics provider in China. Apart from serving SAIC's internal market, it also provides specialized, third party logistics services including vehicle, parts and ports for the main automobile manufacturers, parts manufacturers and Automobile Importers and traders in the automotive industry.

The sales service business is based on the distribution network of SAIC, which mainly distributes domestic and foreign automobile brands such as "Shanghai Volkswagen", "Skoda", "Cadillac", "Buick", "Chevrolet", "import Volkswagen" and "Subaru", as well as Shanghai auto brands such as "Roewe" and "MG".

At the same time, sales of spare parts, used cars, auto supplies and other businesses.

Wang Jianzhang said that in Europe and the United States, when vehicle ownership reaches a certain amount, the proportion of service trade in the local vehicle enterprises' income is higher than that of the vehicle manufacturing and sales.

China, the largest car market in the world, means room for growth.

New energy industry chain

The new energy vehicle business to be injected into Shanghai automobile mainly includes the equity of Xinyuan power company held by SAIC.

Xinyuan power is mainly engaged in the development and production of proton exchange membrane fuel cell and related components. It is one of the key enterprises and institutions supported by the national "863" project.

At the same time, in the field of new energy vehicles, Huayu automobile is also engaged in R & D and manufacturing of key components such as drive motor, electric steering gear, electronic air conditioner, start-stop all-in-one.

Prior to 2008, the Shanghai Volkswagen fuel cell vehicle had been demonstrated during the Olympic Games. In 2010, Shanghai, World Expo, SAIC also had more than 1000 new energy vehicles put into operation.

Shanghai automotive said that the new energy vehicle business will help to integrate SAIC's new energy core technology with vehicle and parts business, so as to improve Shanghai's new energy automotive industry chain.

In the future, Shanghai automobile will make rational use of the new energy technology advantages to promote the upgrading of traditional automobile products, and achieve the strategic goal of becoming the leader of new energy vehicle R & D, manufacturing and system products and services.

SAIC said that in the new energy vehicle business, it is in the stage of investment and development, but Future Ltd will occupy the first mover advantage and bring certain benefits to the company.