AutoBeta(AutoBeta.net)10/20 Report--

According to the website of the Guangdong United Property Rights Exchange Center, GAC Group will publicly transfer its 49% entire equity interest in Guangzhou GAC BYD New Energy Bus Co., Ltd., with a transfer base price of 104 million yuan. After the completion of this property rights transfer transaction, GAC BYD New Energy Buses will no longer be allowed to continue to use intangible assets such as "GAC" brand name and trademark, and will not continue to carry out business activities in the name of subsidiaries of state-funded enterprises.

Data shows that Guangzhou GAC BYD New Energy Bus Co., Ltd. was established on August 4, 2014. It is a joint venture between Guangzhou Automobile Group Co., Ltd. and BYD Co., Ltd., of which GAC Group holds 49% and BYD holds 51%. The registered capital is 300 million yuan, and the registered address is No. 6 North Mingzhu Avenue, Mingzhu Industrial Park, Conghua Economic Development Zone, Guangzhou. The legal representative is Chen Daohong, who is the director of the Operation and Management Department of GAC Group.

The announcement shows that GAC BYD currently has 21 employees. After GAC Group transfers the equity of the joint venture company, if employees of GAC BYD New Energy Bus choose to leave, the economic compensation will be borne by GAC BYD New Energy Bus, in addition to the economic compensation corresponding to the length of service in GAC Group Bus Co., Ltd.(hereinafter referred to as "Guangke").

How did GAC Group and BYD get together? In 2014, GAC Group and BYD simultaneously issued an announcement stating that they would jointly establish GAC BYD New Energy Bus Co., Ltd. According to the announcement, GAC Group, a state-owned enterprise, holds 49% of the shares, while BYD, a private enterprise, holds 51%, which means that BYD has a controlling stake. Such a shareholding ratio really proves some information. At that time, GAC Group was still in a blank period in the new energy market and had almost no technology. BYD had already made small achievements. GAC Group was willing to cede control and let BYD's brand and technology be retained. It was indeed because it took a fancy to BYD's new energy vehicle technology and entered the new energy market through the help of BYD's technology.

However, things did not seem to have gone in the expected direction. The two car companies eventually parted ways, which proved that the performance of the joint venture company was a little disappointing, whether in terms of operation, technology, or cooperation between the two car companies. The announcement shows that in 2023, GAC BYD New Energy Bus Co., Ltd. has operating income of 6.53 million yuan, net loss of 51.79 million yuan, total liabilities of 779.86 million yuan, and total assets of 679.72 million yuan. As of June 30, 2024, GAC BYD New Energy Bus Co., Ltd. has operating income of 99.86 million yuan, net profit of 48.83 million yuan, total liabilities of 808.83 million yuan, and total assets of 757.53 million yuan. It is already insolvent.

Of course, the fact that GAC Group withdrew from GAC BYD and no longer participated in cooperation projects with BYD does not mean that it will not cooperate with BYD, but only that the cooperation on the project is terminated. Some people believe that GAC Group may consider bidding for other bus companies to enter the local area to jointly build its own electric buses. At present, GAC Group has made some achievements in the development of the new energy market and should allow itself to have absolute control.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat