Recently, Wan Liyang, who suspended the preparation of major asset restructuring issues, revealed the reorganization puzzle on November 4, 2010. The announcement revealed that Wanliyang plans to acquire the Linyi Lingong Automobile Bridge Co., Ltd. held by Wansheng Auto Parts Co., Ltd. with RMB 16.72 million in cash. (referred to as Shandong Lingong) 16.33% equity. In addition, the company has previously held a 37.55% stake in Shandong Lingong. After the transaction is completed, the company will become the controlling shareholder of Shandong Lingong with a total shareholding of 53.88%. Wanliyang and Wansheng Auto Parts have signed the “Equity Transfer Agreement†that came into effect on October 25, 2010, but the plan must be approved by the China Securities Regulatory Commission and approved by the company’s shareholders’ meeting. Wanliyang complements Shandong Lingong product line Wanliyang is a listed company specializing in the production and sales of commercial vehicle transmissions. It mainly provides support for domestic large and medium-sized commercial automobile manufacturers such as Beiqi Futian, Dongfeng Automobile, Chengdu Trump, Ziyang Nanjun, etc. The current production scale is approximately 30 years. Million. According to the announcement, in the Chinese card transmission market, Wanliyang’s current market share exceeds 60%, but light and micro-cards have a much lower market share than China Card. Wan Liyang stated that in order to firmly seize the favorable opportunity for the development of domestic automobiles, it had planned to merge 1 or 2 companies in the same industry, expand production capacity, increase market share, and enrich product lines. Its subsidiary company, Shandong Lingong, is complementary to Wan Liyang in the transmission segment market, and therefore it has become the target of Wan Liyang's favorite merger. According to the “Buying Reportâ€, Wanliyang’s products are mainly based on China Card transmissions and light-duty trucks , while Shandong Lingong’s main production and sales of light and micro-card gearboxes have annual sales of more than 500,000 units, and its production capacity ranks among domestic peers. In the first place, the domestic market share exceeded 35%. Before the reorganization of the assets, Wanliyang held 37.55% of Shandong Lingong’s shares. After the transaction was completed, the company would hold a total of 53.88% of the shares and become the controlling shareholder of Shandong Lingong. According to the evaluation results of Kunyuan, the appraised value of Shandong Lingong’s shareholders’ equity on June 30, 2010 as of June 30, 2010 was RMB 10,492.69 million, which was calculated based on the 16.33% equity ratio of Wansheng Auto Parts to Shandong Lingong. The assessed value of equity was RMB 17,134.6 thousand. After negotiation, the transaction amount was finally determined to be 16.72 million yuan, which was 2.42% discount to the assessed value. Light truck transmission market share ranked first After the reorganization, the annual production capacity of Wanliyang will be significantly increased: 300,000 units in Wanliyang, 500,000 units in Shandong Lingong annually, and 280,000 units in the company’s listed capital raising investment project expansion. As a result, the annual transmission capacity of listed companies will exceed 1 million units, becoming the leading domestic transmission production and sales, and the market share of light-duty truck transmissions will rank first in the country. In addition, Wanliyang also plans to carry out the business division of light truck transmission products. It will focus on accelerating the development of high-end products. Shandong Lingong will focus on the development of mid- to low-end products and micro-card transmissions. In addition to automobile transmissions, Shandong Lingong will also bring new business such as agricultural drive axle boxes and construction machinery drive axle boxes to Wanliyang. According to the announcement, the agricultural drive axle box is mainly used for agricultural harvesters, and its market share in the domestic market exceeds 80%, and it is in an absolute monopoly position. Under the background of the country's vigorous development of agricultural mechanization, large harvesters and corn and rice harvesters are in the market. Huge development potential. Its construction machinery products are mainly supported by Foton Lovol Heavy Industry. Wan Liyang believes that this will create new profit growth points for the company. However, the report also mentioned that Shandong Lingong is a transmission roughing company with a low gross profit margin; coupled with the weak management capability of the company, the cost has remained high for a long period of time, and high net cost margins have caused its net profit margin to remain relatively high. low. Therefore, after the acquisition is completed, the company's gross profit margin will decline in the short term. Shijiazhuang Zhongjia Slurry Pump Co.,Ltd. , https://www.zhongjiapump.com
Holding Shandong Lingong Wanli Yangcheng Light Truck Transmission Market Leader