AutoBeta(AutoBeta.net)07/20 Report--

On the evening of July 20, Haima Motor issued two announcements one after another. China first Automobile Co., Ltd. intends to transfer 49% of its holding subsidiary FAW Haima Automobile Co., Ltd. (hereinafter referred to as "FAW Haima") and 50% of Hainan FAW Haima Automobile sales Co., Ltd. (hereinafter referred to as "FAW Haima sales") to Hainan Development Holdings Co., Ltd. (hereinafter referred to as "Hainan Holdings").

In fact, as early as the end of September last year, there were media reports that the Hainan provincial government decided to acquire FAW's stake in FAW Haima (a joint venture between FAW and Haima). According to the report, negotiations are under way, and it is planned that Hainan Holdings will succeed FAW and become the second largest shareholder of FAW Haima, taking over with major shareholder Haima Motor. However, at that time, the media contacted Hainan Holdings and FAW Group, both received a reply is "no relevant information."

Although FAW Haima is a joint venture between FAW and Haima, from a historical point of view, Haima has a deep relationship with FAW and Mazda. In 1992, Mazda and Hainan Automobile Factory, which were in difficulties in development, established Hainan Mazda. Although the products were well received, they lacked production qualification. In 1997, the Hainan provincial government transferred the Hainan provincial manufacturing plant to FAW Group with state-owned assets. It was renamed FAW Hainan Automobile Co., Ltd., thus obtaining the production qualification.

Shortly after entering FAW system, Hainan Automobile Chairman Jing Zhu established Haima Group (2000) to acquire * ST Qiongjin disk which is facing delisting and achieve backdoor listing (2002). In 2004, hippocampus Automobile and FAW Hainan Automobile Co., Ltd. merged into "FAW Haima Automobile Co., Ltd.". According to Tianyan investigation, FAW Group currently holds 49% of the shares, while Haima Motor holds 51%.

After the Prima and Fumelai models put into production by Haima Mazda were sought after by consumers, Mazda turned its attention to the more powerful FAW Group and established FAW with FAW Group in 2005. On August 31, 2006, the new Fumilai 2, which hung the seahorse logo, was officially launched, announcing that the seahorse car had changed from a joint venture brand to an independent brand. With the experience and foundation accumulated in cooperation with Mazda for many years, seahorse has successively launched models such as Haifu Star, New Prima, Haima 3, Huanxing, Cupid, Knight and so on, but these models can more or less see the shadow of Mazda. Including model naming and model design are similar to Mazda, with the exception of Prima and Haifu Xing, other models in the market sales are mediocre.

In 2012, in order to change its image, Haima began to use brand-new model naming rules, starting with "M" for cars and "S" for SUV. M3, S7, M6 and M8 models were launched successively in 2013, and a new generation of Fumelai M5 and S5 were launched in 2014. Haima Motors has also emerged from the influence of Mazda.

The SUV market continues to be hot, and major car companies are sparing no effort to launch SUV models, while Haima Motors has only launched a youth version of Haima S5 after the launch of S7 and S5. In the face of more and more new cars, the competitiveness of Haima car products is getting weaker and weaker, coupled with the lack of quality control caused by eager development, and the decline of users' reputation, Haimaima Motors is becoming more and more marginalized.

Sales of seahorse cars have changed dramatically in 2017, with total sales of 140432 vehicles in 2017, down 35.14% from the same period last year. Annual sales fell again in 2018, with total sales of only 67570 vehicles, down 51.88 per cent from a year earlier. In 2019, the plight of Haima has not improved, with sales of 29456 vehicles for the whole year, down 56.41 per cent from a year earlier.

The cliff-style decline in sales led to performance losses, and Haima was hooded by the star in April 2019. The stock, referred to as * ST seahorse for short, is at risk of delisting. Since then, Haima Motor has continuously sold more than 400 properties in Haikou and Shanghai. Although Haima believes that the sale of idle real estate is conducive to invigorating the company's idle assets, replenishing the company's liquidity and helping the company's operation and development, it can only be regarded as a painkiller to alleviate the disadvantage for Haimaima, which has suffered huge losses in a row.

However, after more than a year of adjustment, Haima Motors has improved in terms of technology, products and marketing. On May 27th this year, Haima Motors changed its short name from "ST Haima" to "Haimai Motors", and the daily rise and fall limit of stock trading price changed from 5% to 10%. According to the financial report, the net loss in the first half of 2021 was 0.8-120 million yuan, compared with a loss of 173 million yuan in the same period last year.

As the only car company in Hainan, Haima Motors may rely on local geographical advantages to transform to new energy vehicles in the future. The Hainan provincial government has issued the Hainan Provincial Clean Energy vehicle Development Plan, proposing a "total ban on the sale of fuel vehicles" from 2030 to promote clean energy vehicles. In addition, as the construction of Hainan free trade port has entered the stage of full implementation, the probability of successful transformation of Haima Motor also has more room for imagination.

However, there are analysts' tasks, even if Haima gets rid of FAW Group, but if it wants to get out of its losses, it still needs to start from its own technology, brand and other aspects to catch up.

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