AutoBeta(AutoBeta.net)12/22 Report--

On the evening of December 22nd, Jianghuai Automobile Group Co., Ltd. (hereinafter referred to as "Jianghuai Automobile") intends to acquire project assets related to equipment installation project (including equipment and tooling assets) held by NIO Automobile (Anhui) Co., Ltd. (hereinafter referred to as "Anhui NIO"). The transaction price is expected to be 1.704 billion yuan. Jianghuai Motor stressed in the announcement that the acquisition of assets will not affect the normal production and operation of the company, if the smooth implementation of this transaction, it will help to continue to deepen strategic cooperation with Lulai Motor.

Another announcement, entitled "Independent opinions of Independent Directors on the proposed acquisition of some assets in Lulai, Anhui Province," shows that Jianghuai Motor will hold its eighth sixth board of directors on December 22, 2022. According to the relevant provisions of the Company Law of the people's Republic of China, the Stock listing rules of the Shanghai Stock Exchange and the articles of Association, as independent directors of Jianghuai Automobile, based on the independent judgment position, the independent opinions on this matter considered by the board of directors are as follows: the acquisition of assets will not affect the normal production and operation of the company, if the transaction is carried out smoothly It will help to continue to deepen the strategic cooperation between the company and Xilai Motor. The consideration of this matter is in line with the relevant laws and regulations such as the Company Law, the Securities Law and the articles of Association, and there is no harm to the interests of shareholders and medium and small investors. Therefore, we agree to this matter.

Jianghuai Automobile is the contract factory of Lai Automobile, which is responsible for the production of electric vehicle products. Its ES6 and ES8 are all manufactured by JAC Motor. Before that, Jianghuai Automobile also relied on the small SUV Ruifeng S3 to achieve good performance in the domestic market. Shortly after its launch in 2013, Jianghuai Automobile won the championship of small SUV sales for two consecutive years in 2015 and 2016, respectively, and handed over a net profit of 1.162 billion yuan in 2016.

But for a long time, Jianghuai Motor has been losing money since 2017, and its sales began to decline obviously. In order to cope with the pressure, Jianghuai Motor chose the "contract manufacturing" way to deal with it, and Jianghuai Automobile cooperated with NIO Automobile and Volkswagen in 2016 and 2017 respectively. In April 2016, Jianghuai signed a strategic cooperation framework with NIO to produce ES8 and ES6 models. In March 2021, Jianghuai Automobile and Xilai Automobile reached a deepening cooperation to establish Jiang Lai Advanced Manufacturing Technology (Anhui) Co., Ltd., in which Jianghuai Automobile and Xilai Automobile each own 50%.

However, the "contract manufacturing" approach has not made JAC's life any smoother. The data show that the government subsidies included in the current profits and losses of JAC from 2019 to 2021 are 1.117 billion yuan, 1.303 billion yuan and 2.005 billion yuan respectively, while the net profits of returning home are 106 million yuan, 143 million yuan and 200 million yuan respectively. It can be said that if JAC had no government subsidy, it might have been "ST" by now.

As for Xilai Automobile, it is difficult to improve the delivery volume after entering 2022, and it has been surpassed by Xiaopeng, ideal, Nezha and other new power brands. Take the delivery volume in November before 2022 as an example, only 106700 NIO cars were delivered in the first 11 months, compared with 112000 ideal cars and 109500 Xiaopeng cars. In addition to "Wei Xiaoli", the second-tier new power brand Naha delivered 144300 cars and 102700 zero-running cars.

For Jianghuai Automobile, the production performance of NIO affects not only production and sales, but also operating performance. The latest data show that in the first three quarters of 2022, Jianghuai Motor had an operating income of 27.544 billion yuan and a net loss of 784 million yuan. According to statistics, from 2014 to the third quarter of 2022, JAC made a total net profit of 1.86 billion yuan, that is to say, the acquisition of some assets of Anhui Lulai spent nearly eight years and nine months' net profit.

Or affected by this, as of today's close, Jianghuai Motor rose more than 1% to 13.67 yuan, with a market capitalization of 29.855 billion yuan.

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