AutoBeta(AutoBeta.net)10/17 Report--

The equity change of BAIC and the complete withdrawal of the foreign investor MBtech (Mercedes-Benz Technology) means that the five-year joint venture technology company is officially 100% owned by BAIC, while one of the major achievements of the original joint venture is the introduction of Mercedes-Benz platform and technology, and the birth of BAIC's own brand model BJ90. In response to the news of equity changes, Beijing Automobile Co., Ltd. officially issued a statement today.

On October 17, Beijing Automobile Co., Ltd. issued a "statement on the relevant situation of BAIC Deben." officials said that the change in BAIC's shareholding structure had no impact on the long-term partnership between BAIC and Daimler. nor will it affect the technical cooperation between BAIC and Beijing Automobile and Daimler. MBtech is no longer a subsidiary of Daimler and its activities have nothing to do with Daimler and Mercedes-Benz, Daimler said.

It is understood that Beijing Automotive de Ben Automotive Technology Center Co., Ltd. is a joint venture between Beijing Automotive Co., Ltd. and MBtech Group GmbH & Co. KGaA (referred to as "MBtech", in which the Daimler Group held a 35% stake in the company) in 2015, with Beijing Automobile accounting for 51% of the total. After 2018, AKKA acquired Daimler's entire stake in MBtech. Beijing Auto bought back 49% of the original MBtech stake in BAIC Deben in May 2020, and BAIC Deben was changed from a Sino-foreign joint venture to a wholly legal person-owned enterprise.

The establishment of BAIC Deben is mainly to enhance BAIC's ability to further transform Mercedes-Benz technology. Thanks to the joint venture and cooperation, BAIC has access to Mercedes-Benz platform technology. BAIC BJ90, which is based on the old Mercedes-Benz GL, is also a masterpiece of BAIC Deben. In addition, Mercedes-Benz also licensed the previous generation E-class V212 platform and the core technology of the front and rear axles to BAIC.

After digesting and absorbing the technology of the previous generation of Mercedes-Benz models, BAIC Deben seems to have completed its initial mission and made more changes in the direction of independent research and development.

At present, the main joint venture partner of BAIC is still Daimler.

BAIC and Daimler established a partnership as early as 2005, forming a joint venture to introduce Mercedes-Benz-branded cars to be produced and sold in China, with BAIC accounting for 51% of the joint venture and Daimler holding the remaining 49%.

In July 2019, BAIC officially announced that it had completed the acquisition of a 5% stake in Daimler AG, continuing to consolidate the partnership between the two sides. At the same time, BAIC has also become Daimler's third largest independent shareholder.

It is reported that BAIC's move is to deeply bind the cooperative relationship with Daimler.

In March last year, there were media reports that Daimler asked Goldman Sachs to help it explore ways to increase its stake in Beijing Mercedes-Benz to 65%. It was also reported that Daimler was exploring several ways to strengthen its control of Beijing Mercedes-Benz. To increase the shareholding to 75%. It is also reported that the plan has met with internal opposition from BAIC.

Beijing Mercedes-Benz is BAIC's main source of profit.

Beijing Automobile's 2019 performance report showed that its operating income for the whole year was 174.633 billion yuan, up 14.95 percent from the same period last year; gross profit reached 37.487 billion yuan, up 1.30 percent from the same period last year; and the net profit belonging to the parent company was 4.083 billion yuan, down 7.83 percent from the same period last year.

Beijing Auto said that the increase in operating revenue in 2019 was mainly due to the increase in revenue of Beijing Mercedes-Benz and Beijing brands, while the decline in net profit was mainly caused by Beijing brands and some investment enterprises feeling the intensification of competition in the domestic passenger car industry and the overall downturn in the market.

Specifically, Beijing Mercedes-Benz's total revenue in 2019 was 155.154 billion yuan, an increase of 14.58 percent over the same period last year, and gross profit was 42.215 billion yuan, an increase of 4.18 percent over the same period last year. The total revenue of the Beijing brand was 19.607 billion yuan, an increase of 17.87% over the same period last year; the gross profit was-4.728 billion yuan, and the scale of the loss was 34.47% larger than that of the same period in 2018.

Judging from the official statement, Daimler's partnership with BAIC has not changed, which may be a good thing for BAIC.

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