AutoBeta(AutoBeta.net)04/10 Report--

On the evening of April 9, as the net assets of FAW Xiali at the end of 2019 were negative, FAW Xiali was treated as a "delisting risk warning" since the 10th, and the stock abbreviation was changed from "FAW Xiali" to "* ST Xiali".

According to the annual report released by FAW Xiali in 2019, the operating income in 2019 was 429 million yuan, down 61.85% from the same period last year; the net profit attributed to listed companies was-1.481 billion yuan, down 4068.32% from the same period last year; the net profit after deducting recurrent profit and loss attributed to shareholders of listed companies was-1.561 billion yuan, down 23.57% from the same period last year. At the end of 2019, the net assets belonging to shareholders of listed companies were-1.387 billion yuan, down 1585.65% from the same period last year. In terms of production and sales, FAW Xiali's cumulative production and sales volume in 2019 was 4023 and 1186, down 81.4% and 93.69% from the same period last year. Most of the cars sold last year were in stock, with 95 remaining by the end of 2019.

This is that the net profit of FAW Xiali deducting non-recurrent profit and loss and the net cash flow generated by operating activities for three consecutive years is negative. According to the annual report data of the past years, the net profit of deducting non-recurrent profit and loss belonging to shareholders of listed companies from 2017 to 2019 is-1.666 billion yuan,-1.263 billion yuan and-1.387 billion yuan.

FAW Xiali said that it is actively taking measures to eliminate the risk of delisting as soon as possible. Carry out staff improvement activities and explore diversified ways to dispose of idle assets, invigorate idle assets, increase revenue and reduce expenditure, implement multi-angle, multi-level and multi-category cost improvement projects, and increase efficiency and improvement while reducing costs; reduce energy consumption, control costs, and make good use of preferential policies to reduce losses.

Data show that FAW Xiali, founded in July 1997, is an economical car manufacturing enterprise of China FAW Group, which mainly produces "Xiali", "Weizi", "Weile" and "Weizhi" series cars, which was once called "national car". However, the performance of FAW Xiali in recent years is not satisfactory, and it has been losing money since 2013.

In 2018, FAW Xiali confirmed that the "Xiali" brand stopped production, and Junpai became the main brand of FAW Xiali. In April 2019, FAW Xiali plans to contribute with assets and liabilities related to land, plant and equipment, while Boxun Automobile invests in cash, and the two sides set up a joint venture in Tianjin; in June of the same year, FAW Xiali Junpai production line was suspended. In December 2019, FAW Xiali announced that FAW intends to allocate its 43.73% stake in FAW Xiali to China Railway Materials Co., Ltd., while FAW Xiali will also acquire a controlling stake in China Railway Wusheng. FAW Xiali said, "after the completion of this transaction, the company will completely divest the less profitable vehicle manufacturing and sales-related assets." In March this year, FAW Xiali changed its name to Tianjin Boxun, the enterprise name changed to "Tianjin Bojun Automobile Co., Ltd." and the legal representative changed to "HUANG XIMING". At this point, the first generation of miraculous cars officially retired from the stage of history.

Some analysts said that the main reason why the "national car" has fallen to this stage is that FAW Xiali has a lack of understanding of the domestic automobile market, coupled with weak brand building, insufficient product innovation and weak marketing ability. as a result, the upgrading pace of FAW Xiali products has failed to keep up with the market demand of consumption upgrading in the automobile market.

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