AutoBeta(AutoBeta.net)07/12 Report--

On the evening of July 11, Guanghui Automobile issued a reminder that the controlling shareholder signed the "Equity Cooperation Framework Agreement" and the proposed change of control. According to the announcement, Xinjiang Guanghui Industrial Investment (Group) Co., Ltd. (hereinafter referred to as "Guanghui Group"), the controlling shareholder of Guanghui Automobile Service Group Co., Ltd. (hereinafter referred to as "Guanghui Group") and Xinjiang Jinzheng New material Technology Co., Ltd. (hereinafter referred to as "Jinzheng Technology") signed the Equity Cooperation Framework Agreement. After December 19, 2024, Guanghui Group will transfer 24.5% of the company's shares, that is, 2.03 billion shares to Jinzheng Technology, and the total consideration of the underlying shares will be determined by both parties through consultation. If a formal agreement is finally signed and the delivery is completed in accordance with this framework agreement, the control of the company will be changed. In other words, Guanghui Motor will usher in a new controlling shareholder.

However, this equity transfer requires the signing of a formal equity transfer agreement and confirmation of compliance by the Shanghai Stock Exchange before it can go through the equity transfer formalities in the Shanghai Branch of China Securities Registration and Clearing Co., Ltd.

Or hit by the above news, as of July 12, Beijing time, Guanghui Motor shares closed at 0.96 yuan per share, up 10.34%, with a total market capitalization of 7.958 billion yuan. However, as Guanghui Motor's share price is still less than 1 yuan, its delisting alarm has not been lifted.

On June 20, Guanghui Motor announced that the company's shares closed at 0.98 yuan per share that day, lower than 1 yuan for the first time. It is understood that Guanghui Motor has closed at a price of less than 1 yuan per share on the 16th trading day. According to regulations, if the daily closing price of the company's shares is less than 1 yuan for 20 consecutive trading days, the company's shares may be suspended from listing on the Shanghai Stock Exchange.

People in the industry believe that behind Guanghui Motor's proposed change of controlling shares, it is hoped that the new controlling shareholders can return its share price to 1 yuan, eliminating the risk of "face value delisting".

It is understood that the above-mentioned Jinzheng Technology was established in April 2008, with a registered capital of 110 million yuan. It is a digital transformation enterprise of a professional service enterprise under Xinjiang Jinzheng Group. The controlling shareholder of the company is Xinjiang Jinzheng Industrial Group Co., Ltd. (hereinafter referred to as "Jinzheng Group"), which was founded in 1993 and established in 2007 with a registered capital of 1.768 billion yuan. It is mainly engaged in four sectors: science and technology industry, energy and chemical industry, engineering construction and trade logistics. On the same day, Guanghui Motor said in a separate announcement that Jinzheng Technology was in good condition and that there were no obstacles to its ability to pay to Guanghui Group. Jinzheng Group promised that Jinzheng Technology would pay 100 million yuan in intention money to the designated account of Guanghui Group by July 20.

Guanghui Motor was founded in 2006 and started with mainstream joint venture brands such as Toyota, Honda, General Motors and Volkswagen. As a former head car dealership, Guanghui Motor is now having a hard time. According to the statistics of Automotive Industry concern, from 2018 to 2020, Guanghui Automobile achieved net profits of 3.257 billion yuan, 2.601 billion yuan and 1.516 billion yuan respectively, with net profit growth rates of-16.27%,-20.16% and-41.72% respectively. Net profit in 2021 increased slightly compared with the same period last year, but there was another huge loss in 2022, with an annual loss of 2.669 billion yuan, down 265.92% from the same period last year. Guanghui Automobile turned from loss to profit in 2023, with annual revenue of 137.998 billion yuan, but net profit of only 392 million yuan. After entering 2024, the operation of Guanghui Automobile continued to deteriorate, with total revenue of 27.79 billion yuan in the first quarter, down 11.49% from the same period last year, and net profit of 70.9405 million yuan, down 86.61% from the same period last year.

By the end of the first quarter of this year, Guanghui Automobile's asset-liability ratio reached 61.98%. At the same time, it is deep in the whirlpool of delisting, and Guanghui Automobile urgently needs to take substantial action to reverse the current situation. As one of the largest car dealer groups in China, Guanghui Automobile is indeed a sad situation today, but the dilemma Guanghui Automobile is facing is not alone, but only a microcosm of the development of many dealer industries. According to the 2023 National investigation report on the living conditions of Automobile Dealers released by the China Automobile Circulation Association, only 27.3% of the dealers have achieved their annual sales targets in 2023. In addition, the proportion of dealers' losses in 2023 was 43.5%, but the loss area narrowed and the profit ratio was 37.6%.

Since 2024, the plight of domestic dealers has not been significantly improved. According to the above association data, there is an obvious differentiation in the completion of dealer sales tasks in the first half of 2024, with 18.4% of dealers completing tasks, 34.8% of dealers with a task completion rate of more than 80%, and 13.5% of dealers with a completion rate of less than 50%. The China Automobile Circulation Association said that at present, the pessimism among dealers is spreading, and they are more cautious about the expectation of the automobile market in the second half of the year. It is suggested that dealers should rationally estimate the actual market demand according to the actual situation.

Nowadays, the car market is becoming more and more open and the competition is becoming more and more fierce. if we are not careful, we may face a cruel exit. In the face of the increasingly fierce stock competition and the continuous price war, the automobile dealer industry is under collective pressure. in this context, it is worth thinking about how car dealers seek change.

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