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Recently, FAW Group disclosed its "three major actions" plans for the next three years at an internal meeting. The "three major actions" are "Longteng Action", which is based on its own brand, core key technologies and emerging businesses, "Tiger Leap Action", which is based on joint venture and cooperation 2.0, and "Pegasus Action", which includes spare parts, logistics and other businesses.

In the disclosure of the "three major actions" plan, the independent brand-based "Longteng Action" is the focus of FAW Group's development in the next three years. In this regard, FAW Group has also made a three-year planning goal for its own brands, Red Flag, Pentium and Liberation. For the Red Flag brand, FAW plans to spend 400 million yuan on the brand and research and development of Red Flag in each of the next three years, totaling 2.4 billion yuan, in order to achieve the goal of 400000 vehicles and 6% profit in three years. As for the Pentium brand, FAW will invest 500 million yuan and 300 million yuan in each of the next three years to support the Pentium brand and research and development, and strive to reach the goal of 1 million vehicles in three years. In terms of the Jiefang brand, FAW will support 200 million yuan in research and development, totaling 600 million yuan, to achieve the goal of 500000 vehicles in three years and a profit margin of 6%.

Previously, due to the relatively old models and no choice of products, Red Flag brand sold only 3,000 to 4,000 vehicles a year. Since Xu Liuping became chairman of FAW Group, he strongly supported the Red Flag brand. In 2018, the sales of the Red Flag brand exceeded 30,000 vehicles. In the first half of this year, the Red Flag brand reached the sales performance of 30,000 vehicles in the whole year last year. Thanks to a low base, sales of the Red Flag brand increased by 225% in the first half compared with the same period last year. According to the current growth trend of Red Flag and the group's investment in the Red Flag brand, Red Flag is expected to achieve its target of 400000 vehicles by 2022.

In contrast to the Pentium brand, FAW wants to achieve the sales target of 1 million vehicles in 2022, which is undoubtedly a great challenge; judging from the sales volume of the first half of this year, although the sales volume of Pentium has increased in the first half of this year, the cumulative total sales volume is only less than 50, 000 vehicles. FAW still has a long way to go to achieve its goal of 1 million Pentium vehicles in the next three years.

As for the Liberation brand, it is not difficult for FAW to achieve its sales target of 500000 vehicles in three years. In 2018 alone, FAW Jiefang's sales volume reached 313000 vehicles, with operating income and net profit of 76.985 billion yuan and 2.37 billion yuan respectively. FAW Group insiders said that there was no pressure to achieve the sales target of Jiefang Brand in 2022.

The plan is the biggest move since the change of chairman of FAW Group. Outsiders claim that this is a signal that FAW Group is about to go public as a whole, but insiders of FAW Group said that FAW will not take the road of listing as a whole for the time being. Instead, it will push each unit to list. For FAW, the overall listing is also faced with the problem of how to deal with its non-performing assets, including FAW Xiali, FAW Jilin, etc., the above move is to pave the way for the listing of commercial vehicles, because for FAW, the overall listing is "a long way off".

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