AutoBeta(AutoBeta.net)03/26 Report--

On March 25th, FAW car announced that, on March 12, the company received the approval of FAW car Co., Ltd. major asset restructuring and the issuance of shares to China first Automobile Co., Ltd. to purchase assets (Securities Regulatory license [2020] No. 352), approved the transaction. After receiving the approval documents of the CSRC, the listed companies actively carry out the transfer of the underlying assets, and as of the date of this announcement, the industrial and commercial change registration procedures for the placed assets and the purchased assets involved in this transaction have been completed.

According to the previous restructuring plan, FAW cars will own all assets and liabilities except the equity and some retained assets of FAW Finance Co., Ltd., Xin'an Automobile Insurance Co., Ltd., and replace with the equivalent part of FAW Liberation 100% equity held by China first Automobile Co., Ltd. According to the previously disclosed restructuring draft, FAW sedan will price the 100% equity of FAW Pentium car Co., Ltd. at 5.088 billion yuan, which will be replaced with FAW Liberation assets valued at 27.009 billion yuan, and the difference will be made up mainly in the form of directed share issuance.

On March 18 and March 19, Changchun Market Supervision Administration and Changchun New District Branch of Changchun Market Supervision Administration respectively issued a "notice of approval of change Registration", which means that FAW Jiefang and FAW cars have completed the registration procedures for the transfer of equity involved in this transaction. The shareholder of FAW Jiefang Automobile Co., Ltd. changed from FAW shares to FAW cars and became a wholly-owned subsidiary of the listed company. FAW Pentium car Co., Ltd. has become an unlisted wholly-owned subsidiary of FAW and the main body of FAW Pentium brand operation. At this point, FAW car major asset restructuring dust settled.

According to data, FAW Pentium brand was founded in 2006, is the independent automobile brand of China FAW Group, mainly produces SUV and cars and other models. Since the release of the new brand image at the end of 2018, FAW Pentium's sales are getting better, which is not very good, but compared with the declining car companies, FAW Pentium's performance is still excellent. Sales figures show that FAW Pentium sold a total of 120500 vehicles in 2019, up 33 per cent from a year earlier.

According to the FAW Group website, FAW Jiefang Brand was founded in 2003 and is a medium, heavy and light truck and bus manufacturing enterprise based on the truck business of the former first Automobile Factory. FAW Jiefang belongs to the high-quality assets of FAW Group. it is the leader of the domestic heavy truck industry and ranks first in the industry for a long time. Sales figures show that FAW sold 336000 vehicles in 2019.

Industry insiders said that FAW Pentium to become an unlisted wholly-owned subsidiary of FAW shares is conducive to future development, return to FAW shares, FAW Group can give greater support to the new Pentium brand. In July last year, FAW Group put forward specific plans for the future development of FAW Pentium and FAW Red Flag at its internal meeting, in which FAW will give 500 million yuan and 300 million yuan annually to FAW Pentium brand and R & D, totaling 2.4 billion yuan in three years, and strive to achieve the goal of "1 million vehicles in three years and zero loss of profit margin".

With the completion of the asset exchange between FAW cars and FAW, it cleared the "roadblock" of FAW Group's listing as a whole. Prior to this, FAW Xiali disclosed the "announcement on the progress of the implementation of major asset restructuring" and announced that the enterprise name and legal representative had been changed. The announcement shows that on February 21, the Ministry of Ecology and Environment has changed the enterprise environmental protection information, the enterprise name has been changed to "Tianjin Bojun Automobile Co., Ltd." (hereinafter referred to as "Tianjin Boxun"), and the legal representative has been changed to "HUANG XIMING". An announcement by FAW Xiali officially announced that the automobile brand, which was born in 1997, was officially launched on the historical stage.

It is understood that FAW Group is the only automobile company that has not been listed as a whole among the six major automobile groups in China. In fact, FAW Group is the first automobile company to plan a collective listing, but it has not been fulfilled for a long time because of its complex internal structure and the problem of inter-industry competition. Data show that FAW Group has four listed companies: FAW Xiali, FAW sedan, FAW Fuwei and Qiming Information. In order to speed up the overall listing, FAW Group has accelerated its internal asset restructuring.

According to the data, FAW Group sold 3.464 million vehicles in 2019, up 1.3% from the same period last year; realized operating income of 620 billion yuan, up 4.4% from the same period last year; and realized profit of 44.05 billion yuan, up 2.2% from the same period last year.

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