AutoBeta(AutoBeta.net)05/19 Report--

According to the Daily Economic News, an insider of Fujian Xinlongma told reporters,"Great Wall Motor is making a handover with the company for the acquisition of Longyan factory." A person close to Fujian Xinlongma said: "As early as April this year, Great Wall Motor has signed an acquisition-related agreement with Fujian Xinlongma and is currently renovating the original factory building. Meanwhile, the former Fujian Xinlongma employees have been notified to wait for re-recruitment." In response to this matter, Great Wall Motor said only: "There is no news available for release yet." At the same time, Fujian new Longma also said: "The company and Great Wall Motor cooperation related matters are not clear."

According to the data, Fujian Xinlongma was founded in April 1997. Its shareholders are jointly composed of Fujian Province Automobile Industry Group Co., Ltd. and Longma Automobile Industry of Longyan City Government. It is a directly controlled enterprise of Fujian Province Automobile Industry Group. In April 2011, the headquarters of the company moved to Longyan, entered the mini commercial vehicle market, gradually expanded the series of commercial vehicles and passenger cars such as micro cards, MPVs, SUVs, cars and new energy vehicles, and committed to building the largest small vehicle production base in Fujian Province and East China. In August 2016, Fujian Xinlongma was restructured by Swedish National Energy Electric Vehicle (NEVS), which and its affiliated companies held 65% of shares and Fuqi Group held 20%. Subsequently, with NEVS acquired by Evergrande in 2019, its cooperation with Xinlongma also ended. According to Sky Eye, Fujian Xinlongma is currently the largest shareholder of Fuqi Group (holding 53.915%) and Longyan Investment Group is the second shareholder (holding 43.347%).

According to Fujian Xinlongma's business plan for the next four years, the Company strives to realize the positive operating cash flow in 2023, and realize the profit turning into profit in 2025. Under such background, it may be one of the few choices for Fujian Xinlongma to activate production capacity with the help of Great Wall Motor. According to Fujian Xinlongma official website, its main model brand is "Qiteng", passenger cars on sale include N30, EX7, M70, as well as medical vehicles, postal vehicles and other special models, it only has a complete vehicle manufacturing plant in Longyan factory, with an annual output of 150,000 cars and an annual output of 150,000 engines. According to the data of China Automobile Association, the cumulative sales volume of Fujian Xinlongma from January to April 2022 was 1299 vehicles, down 23.99% year-on-year.

According to the inquiry of automobile industry, Longyan Branch of Great Wall Motor Co., Ltd. was established on April 18,2022, with registered address of No.8 South Ring Road, Huangtian Village, Gaopo Town, Longyan City, Yongding District, Fujian Province, which is the same as the official website address of Fujian Xinlongma. At the same time, Great Wall Motor has issued a number of bidding announcements related to "Longyan Factory", and started recruitment for production, R & D and other related positions in Longyan, Fujian Province, and the relevant work address is only 3 kilometers away from Fujian Xinlongma Automobile Co., Ltd.

In sharp contrast to Fujian New Dragon Horse, it is the rapid development of Great Wall Motor. According to the data of the Passenger Association, the cumulative wholesale sales volume (excluding commercial vehicles) of Great Wall Motor from January to April 2022 was 281,000 vehicles, down 19.9% year-on-year, ranking ninth among passenger car enterprises. According to the "2025 Strategy" of Great Wall Motor, by 2025, it will achieve annual sales of 4 million vehicles worldwide and operating revenue of more than 600 billion yuan, 80% of which are new energy vehicles.

In order to achieve this goal, Great Wall Motors has been frantically merging and restructuring over the past year, including the Jingmen production base of Liebao Automobile, the former Zhongtai Linyi production base located in Linyi City, the second phase factory of Hanteng Automobile located in Shangrao, Jiangxi Province and the Hanlong Automobile Factory in Daye, Hubei Province. According to the available data, the total production capacity of Great Wall Motor's nationwide production base exceeds 2.5 million vehicles.

During the "two sessions" this year, Wang Fengying, president of Great Wall Motor, suggested that for idle resources, production capacity utilization rate is low, but with certain market foundation, transformation and upgrading conditions and outstanding cluster advantages, it is suggested that the local government should take the initiative to introduce powerful automobile enterprises to settle down and tilt resources in terms of funds and policies, so as to activate production capacity and drive economy. The personage inside course of study thinks,"Compared with building new factory, Take over the existing factory of other automobile enterprise to carry on transformation upgrade, Effectively save capital and time cost, More conducive to head enterprise expansion."

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