Beiqi Group accelerates Xu Heyi's financing to cope with mergers and acquisitions

Beiqi Group accelerates Xu Heyi's financing to cope with mergers and acquisitions


"The news that Beiqi Holding will acquire Fujian Automobile Group is rumored. This is a rumor made by a correspondent of the Jinghua Times." On February 20th, Chen Guang, Propaganda Department of Beijing Automotive Industry Holding CO., Ltd. (hereinafter referred to as "Beijing Automotive") I was very angry and said, "In the market economy, any company will consider the expansion of foreign, but the reporter takes the guesswork and Lenovo's news with astonishment. We haven't found him yet."

Whether or not this year is the acquisition of Fujian Automobile Group, as the series of internal adjustments of BAIC Holdings will close soon, the reform of the stock-based restructuring will also be put on the agenda. The embryonic form of a large automobile industry in Beijing has already emerged. Under the macro background of the country's efforts to promote the integration of the auto industry, Beijing Auto Holdings will not be out of Beijing and will be deployed in the country, and it may be incorporated by other domestic auto companies.

But to go out, Fujian Automobile Group is just an option in the merger and acquisition target of BAIC. Southeast Automotive related officials told reporters that she did not get relevant information.

Accelerate internal integration and improve the overall performance of BAIC; overall listing; breaking through the localities and distributing the whole country are three "barriers" that BAIC could not bypass in its development.

Personnel changes

"Many adjustments within the company system have a certain relationship with the further promotion of the company's grouping strategy," said Chen Guang.

Recently, Beijing Auto Holding has just announced the removal of Tong Zhiyuan’s position as senior executive vice president and secretary of the company’s party committee at Beijing’s Mercedes-Benz Daimler Chrysler Automotive Co., Ltd. (BBDC), removing Dong Changzheng’s executive vice president and member of the Party committee, and reverting back to BAIC. Serving on the eve of the Spring Festival, Beijing Auto Holding also made adjustments to Beijing Hyundai’s Chinese management of another joint venture company; before that, the personnel adjustment of Beiqi Foton was completed.

The personnel adjustment of BAIC Holdings is the highlight. After the relationship between Futian Automotive and Beijing Benz and other companies has been rationalized, the personnel adjustment of BAIC Holding has also been completed in a “lightning” manner.

After the former General Manager of Beijing Automobile Industry, Dong Yang, became the executive vice president and secretary general of the China Automotive Industry Association, after nearly half a year of “Global Recruitment”, Wang Da, the current vice president of SAIC, took over as the general manager of “Hydrangea.” Although it has not yet officially assumed office, the management team built around it has basically been completed: At present, Tong Zhiyuan, deputy general manager of BAIC Motors, is also the chief engineer of BAIC. Zhang Jian, MA Shiqiu, and Zhou Yu are appointed chief accountants, chief economists and general counsels. Xu Heyi, chairman of Beijing Auto Holdings, is the overall leader.

“At present, only the appointment of Tong Zhiyuan has been confirmed, and other appointments have not been announced.” Chen Guang clarified.

Overall listing

Since the overall listing was put in place at the end of 2003, this year has become a crucial year for the restructuring and listing of BAIC.

At the end of January, it was reported that the Beijing SASAC had agreed in principle to establish a Beijing Automotive Group Co., Ltd. to achieve the overall listing of BAIC's vehicle assets. A series of personnel adjustments is undoubtedly the foundation for the enterprises to move from "controlling" to "grouping."

The overall restructuring, the establishment of a scientific and legal corporate governance structure, clear the relationship between the board of directors and managers, so as to achieve the overall listing is a long time Beijing Automobile Holdings planned.

In order to create conditions for the overall listing, Beijing Automotive Holdings successively closed down the shares held by Beijing Automobile and Motorcycle United Manufacturing Co., Ltd. in Beijing Automobile Manufacturing Co., Ltd. and Foton Motor, and audited the assets of the Beijing light automobile manufacturing plant. After the assessment, BAIC and Beijing Benz reached an agreement on the transfer of JEEP2500 and second-generation military vehicle assets.

It is reported that the listing plan of Beijing Auto Holdings is: During the year, Beijing Auto Holding will implement the overall listing of the entire vehicle company, but it is not an IPO. The largest possibility is to include a new stock company and indirectly achieve listing financing. However, this information has not been confirmed by BAIC.

Although there is NO definite timetable for when the “Beijing Auto Group Co., Ltd.” will be listed, how is it for BAIC Holdings, which has established a complete business from parts and components to vehicle R&D, manufacturing, sales, used vehicle circulation, and auto finance? Persuading a foreign partner to pack the Chinese company’s assets in the joint venture company’s assets into a listed company is the key to its internal integration.

35% growth pressure

In 2007, BAIC Motor sold a total of 694,000 vehicles, achieving a sales income of more than 650 billion yuan, ranking fifth in the national auto group and ranking behind SAIC, FAW, Dongfeng and Changan. Strive to enter BACO Holdings, one of the top 500 companies in the world in 2010. It is not only difficult to support Beijing’s large auto industry, but it is likely to be acquired by other companies in the future under the general trend of “big fish eat fish” in the domestic auto industry. .

SAIC Whale swallowing NAC is undoubtedly a typical model, not a copy.

According to the “Eleventh Five-Year Plan for Development of the Automotive Industry”: By 2010, there will be one to two large-scale automobile enterprises (groups) with an annual output of more than 2 million units and an export volume of more than 10%; several companies with an annual output of 1 million. More than 10% of the key car manufacturers have exported more than one vehicle. Companies entering the list are expected to receive a series of support and policy preferences from relevant departments.

At the time of SAIC's expansion, FAW also announced that it will invest 13 billion yuan to build its own brand in the next eight years, and Dongfeng Motor has also thrown an "olive branch" to Hafei. Beiqi Holding will naturally not abandon the opportunity for expansion. Xu Heyi proposed to produce and sell 900,000 vehicles and to challenge 1 million vehicles in 2008. Sales revenue must be 88.21 billion yuan, and 95.5 billion yuan should be challenged.

Sales revenue increased from 65 billion yuan in 2007 to 88.21 billion yuan in 2008. The minimum growth rate of 35% has become a major pressure for BAIC to digest in 2008, and sales growth in 2007 was only 5.9% year-on-year. China Business Daily reporter Zheng Chengfei reports from Beijing

Links: Beiqi Automobile produced 706,396 vehicles in 2007, a year-on-year increase of 3.5%, and sold 694074 vehicles, an increase of 1.3% year-on-year; industrial output value is expected to complete 65.8 billion yuan, an increase of 9.3% over the same period of last year, and the industrial added value is expected to reach 10.5 billion yuan. Growth of 36.2%; sales revenue is expected to complete 65 billion yuan, an increase of 5.9%; profit is expected to complete 1.64 billion yuan, an increase of 74.4%, and taxes are expected to be 5.21 billion yuan, an increase of 1.1%; export earnings of 430 million US dollars, year-on-year growth 69.1%; completed delivery of 3.2 billion yuan, an increase of 71%; including exports of 40,929 vehicles, an increase of 145.8%.

Beiqi Southeast Flight Administrative Merger Behind the Scenes

China Business Daily reporter Zheng Chengfei reports from Beijing

Accelerating internal integration; listing as a whole; Breaking through the localities and distributing the entire country are the three goals set by Xu Qiyi, chairman of BAIC Motor, for the company. As an important model enterprise in Beijing, Beijing Auto Holding Co., Ltd. is the first research project since the appointment of Guo Jinlong, the new Mayor of Beijing, and the wishes of the Beijing Municipal Government to “make the automobile industry bigger” have been fully demonstrated.

The National Passenger Vehicles Association believes that this year will be the peak year for administrative mergers in the automotive industry.

According to industry insiders, BAIC and Fujian Automobile Group have talked for a few years without results. Now it is reported that there is likely to be an administrative intervention.

It is reported that in January 2008, the Beijing Municipal Government held a special meeting to discuss the economic development direction of Beijing after the Olympic Games. As Beijing Steel has become the largest company in Beijing after the relocation of Shougang, this meeting has formulated a plan for “taking the auto industry as a priority to develop industries”.

Xu Heyi's 2010 goals for BAIC Holdings are: By 2010, Beijing Automotive will achieve a production capacity of 1.5 million vehicles, produce and sell 1.3 million vehicles, and its own brand production and sales will not be less than 60%, and 20% of its products will enter the international market; With 145 billion yuan, and foreign exchange earned through exports of 2 billion U.S. dollars, it has become an important pillar enterprise in the high-end industries and modern manufacturing industries of the capital.

However, because Beiqi Holding’s sales scale is mostly contributed by Beiqi Foton, Beijing Benz sales growth was slow last year. Beijing Hyundai experienced three years of high-speed growth and also climbed weakly. It is absolutely a cheap move to expand the scale through massive mergers and acquisitions. When Xu Heyi talked about the expansion of "breakthroughs and layouts throughout the country," it was logical for the reporter to associate the Fujian Automobile Group, which Beijing Automotive Holdings had engaged in mergers and acquisitions for several years, with the unsatisfactory development. Fujian Automobile Group owns about 20 wholly owned and controlled subsidiaries, including Southeast Auto and Xiamen Automobile.

However, under the conditions of a market economy, it is difficult to meet the requirements of the "Eleventh Five-Year Plan for Development" of the "Automobile Industry" in the short-term, and the administrative behind-the-scenes demobilization has become inevitable. Shanghai, Nanjing, the National Development and Reform Commission and other parties coordinated, the largest merger and acquisition case in China’s auto industry took place, and Rover’s marriage continued.

State-owned enterprise reforms need to achieve SASAC-managed companies that are small and sophisticated. For SOEs themselves, they require that each enterprise is large and strong. Provincial and regional SASACs are also advancing reforms in line with the Central SASAC. Therefore, state-owned enterprises that cannot quickly expand will be merged by large and powerful state-owned enterprises. This kind of administrative merger is to hope to quickly consolidate the socialist public ownership economy.

However, mergers and acquisitions under the conditions of a market economy or the reorganization of administrative means have greater risks. M & A in the world is mostly unsuccessful. Mercedes-Benz still swallows Chrysler after it has swallowed it for many years. BMW invested Euro 3 billion in the merger of Rover, and finally sold it back to its original shareholder at £1. The key to large-scale mergers is the integration of corporate culture and the high degree of effective and unified corporate management. This cannot be achieved in this respect. Mergers and acquisitions will become a heavy burden for mergers and acquisitions companies.

The National Passenger Vehicles Association believes that the typical mergers of FAW-Fuzhou, Dongfeng-Haffei, SAIC-Yuejin and Changan-JMC are still at least five years before they can reach the next basic and accurate conclusion. If most of the administrative mergers are successful, they will play a decisive role in consolidating the strength of the socialist public ownership economy and the domestic-funded enterprises of the Chinese automobile industry.

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