Shaanxi Heavy Duty Control Competition Focus
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Weichai Power, which has always focused on building a heavy truck gold industrial chain, is facing the possibility of losing control over Shaanxi Heavy-duty Trucks after it was cut off by China National Heavy Duty Truck after a joint venture with German Mann.
According to the latest news, Shaanxi Provincial Government is actively preparing for the overall listing of Shaanxi Automotive Group Co., Ltd. (hereinafter referred to as Shaanxi Auto). The Shaanxi Provincial State Assets Supervision and Administration Commission hopes to take Shaanxi Automobile's controlling power from the hands of Weichai Power through the overall listing of Shaanxi Automobile.
Shaanxi Automobile recently reported at its internal work conference that Shaanxi Automobile's overall listing has been listed as a plan of Shaanxi Province and Shaanxi Automobile hopes to land on the domestic A-share market. Shaanxi Auto, as the leading automobile manufacturer in Shaanxi Province, owns 51% of Shaanxi Zhongqi's equity in Weichai Power. Shaanxi Automobile holds only 49% of shares in Shaanxi Zhongqi, and it is difficult to load Shaanxi Heavy Gas assets, which account for 80% of Shaanxi Automobile's operating revenue, into future listed companies.
Due to the previous development direction for Shaanxi Auto, there were differences with Weichai Power. Shaanxi Province has always hoped that Weichai Power will give up control of Shaanxi Heavy Industries.
Shaanxi Auto must go into the stock market
In June of this year, Shaanxi Automobile's former chairman Zhang Yupu retired in Xi'an, not Shandong Weifang arranged by Tan Xuguang. In 2007, Tan Xuguang, chairman of Weichai Power, once arranged for Zhang Yupu to become CEO of Weichai Power.
Shaanxi Automobile, including Shaanxi Heavy Duty Truck, is still under the management of Zhang Yupu for another two years. In June this year, when Zhang Yupu left office, it formulated an overall listing plan for Shaanxi Auto and determined the next stage for the management team. Strategic Goals - Continue to strengthen heavy trucks, and seek all-round development in China Card, passenger cars, mini-vehicles, key parts and special vehicles, and become commercial vehicles including heavy, medium, light, micro, and large passenger vehicle business. group.
As the second largest shareholder of Shaanxi Heavy Duty Truck, Shaanxi Automobile's development is still centered on heavy trucks. Shaanxi Automobile has set aside the Weichai power and formulated its own plan. It is supported by the Shaanxi Provincial Government. As a Shaanxi enterprise, Shaanxi Automobile is Leading automobile industry in Shaanxi Province.
After Zhang Yupu delivered the baton to Fang Hongwei, the general manager of Shaanxi Automobile, the party as the new chairman began to flex its muscles. On June 15th, the groundbreaking ceremony for Shaanxi Automobile's mini vehicle base was held in Baoji City. Fang Hongwei said on the same day that it plans to invest RMB 3 billion in 2009 to build an auto industrial park in Baoji, Shaanxi Province, with major products such as China Card, special-purpose vehicles, mini-vehicles, and auto parts. The final output value will be 30 billion yuan.
Three days later, on June 18, Shaanxi Automobile signed an agreement with China CITIC Bank Xi’an Branch. CITIC Bank will grant RMB 3 billion to Shaanxi Auto to use for the development of the company.
Relying solely on bank loans to get rid of funds is one of the main reasons why Shaanxi Province is eager to promote the overall listing of Shaanxi Auto. According to sources, “China National Heavy Duty Truck Co., Ltd. went to Hong Kong for listing in 2007 and raised more than 10 billion yuan in funds. The funds in terms of new product research and development, market development, and overseas expansion are more than adequate. Shaanxi Automobile is facing competition with Weichai Power for Shaanxi. The issue of auto ownership has been unable to achieve independent development."
After Weichai Power acquired the Hunan Torch and successfully implemented the share reform, it currently holds 51% of the shares of Shaanxi Heavy Duty Truck and Shaanxi Fast Gear, respectively. The remaining 49% of the shares of these two companies are held by Shaanxi Provincial SASAC. Weichai Power Holdings, the two leading companies in Shaanxi Automobile Industry, has always been unable to relieve the Shaanxi Province.
Shaanxi Automobile has been preparing for the overall listing by deepening institutional and institutional reforms. At present, Shaanxi Automobile has 15 equity holding subsidiaries such as Shaanxi Heavy Duty Truck, Baoji Huashan Engineering Vehicle Co., Ltd., Shaanxi Oushuute Automobile Co., Ltd., Xi'an Cummins Engine Co., Shaanxi Hande Axle Co., Ltd., and Shaanxi Heavy Duty Truck Auto Parts Co., Ltd. The above subsidiaries will all be within the listing plan of Shaanxi Auto.
At present, Shaanxi Automobile has not disclosed the specific timetable for the overall listing. Since Weichai Power has already installed 51% of Shaanxi Zhongqi's equity in the listed company, it does not make any sense for Shaanxi Auto to put only the remaining 49% of its equity in the listed company. "Since Shaanxi Automobile currently occupies most of Shaanxi Auto's operating income, it is difficult to lobby investors if it does not achieve control," said Li Chunbo, chief auto analyst of CITIC Securities.
Shaanxi steam centrifugal force
Shaanxi Auto is a leading company in the domestic production of heavy-duty trucks with a capacity of more than 15 tons, and it is a major adjustment of the industrial structure of the company since its establishment. Shaanxi Automobile's foreign ministry's explanation is that Fang Hongwei’s explanation is “measures to be taken to cope with the current financial crisis, take the road of connotative development, and extend the industrial chain.â€
In fact, Fang Hongwei’s real intention is to gradually get rid of the shadow of control of Weichai’s power. At present, Shaanxi Automobile's core enterprises are Shaanxi Heavy Duty Truck and Hande Axle. However, the share ratio structure is: Weichai Power holds 51% and Shaanxi Auto holds 49%. Shaanxi Auto should gradually operate independently and only expand into other areas.
When Xi'an Cummins Engine Co., Ltd. was established at the end of 2005, public information indicated that it would hold 25%, 25%, 37.5% and 12.5% ​​of shares by Shaanxi Automobile, Shaanxi Heavy Gas, Cummins Corporation, and Cummins (China) Investment Co., Ltd. respectively.
However, at the beginning of August 2007, Xi'an Cummins officially started production. According to its introduction, the company is an engine manufacturing company jointly established by Cummins Inc. and Shaanxi Auto with a 50:50 investment ratio. Due to Weichai Power's holding of Shaanxi Heavy Duty, and with Cummins as a competitor for engine manufacturing, Shaanxi Automobile finally excluded Shaanxi Heavy Gas out of Xi'an Cummins.
Shaanxi Province has sought Shaanxi Automobile's independence and hopes to regain control of the company's shares, and has made various efforts. On December 7, 2006, under the leadership of the Shaanxi Provincial State Assets Supervision and Administration Commission, Shaanxi Yanchang Petroleum (Group) Co., Ltd., the fourth largest oil extraction and refining company in the country, officially took a share in Shaanxi Auto and invested RMB 1 billion in Shaanxi Auto. Shaanxi Auto, in its capacity as Shaanqi, the second largest shareholder of Shaanxi Heavy Duty Truck, will transfer this fund to Shaanxi Heavy Gas, which will be used for Shaanxi Heavy Duty's "Eleventh Five-Year" development project to fulfill the investment agreement reached with Weichai Power. .
After the investment, Yanchang Petroleum does not participate in the management and decision-making of Shaanxi Auto. It only enjoys the right to shareholder's investment income. The rights of its shareholders are exercised by the Shaanxi Provincial State-owned Assets Supervision and Administration Commission, extending the oil's 1 billion yuan in funds, equivalent to Shaanxi Provincial Government's entrustment of Shaanxi Province. Provincial SASAC investment.
Extending the entry of oil has forced Weichai Power to follow up on additional investment. On June 12, 2007, Weichai Power announced that it intends to increase capital of 416 million yuan for Shaanxi Zhongqi and Shanxi Auto to contribute the same amount of capital, with a total investment of 400 million yuan. After the capital increase was completed, the shareholding structure of both parties remained at 51% and 49%.
Analysts pointed out that the use of Shaanxi state-funded enterprises and the cooperation between Shaanxi domestic enterprise resources and Shaanxi Auto may be an effective way to counterbalance Weichai's power. The Shaanxi Tongjia Automobile Co., Ltd. established at the end of April this year is Shaanxi Airlines and AVIC Shaanxi Aircraft. Industrial (Group) Co., Ltd. jointly funded the formation of Shaanxi Auto's attempt to "strengthen heavy trucks and cultivate new growth points."
Weichai gold chain may break
The core competitiveness of Weichai Power has always been the “heavy truck gold industrial chain†that it promotes. This mainly refers to the core technology and production capacity of gearboxes, axles, and vehicles in the heavy truck industry, including powertrains. , complete vehicle business and parts and components three major businesses.
Tan Xuguang said in an interview that in 2005 through the acquisition of the Hunan Torch, Weichai Power initially possessed a complete heavy truck gold industrial chain model of “transmission + engine + axleâ€. Weichai has performed this model in recent years. Dig deeper and explore the competitive advantages of industrial chain integration in the heavy truck industry.
The three major businesses complement each other and operate independently, forming a complete "golden industrial chain" for heavy trucks. The companies involved in the industrial chain are: Weichai Power, Shaanxi Heavy Gas, Shaanxi Fast Gear, and Hande Axle. However, the latter three companies are actually controlled by the Shaanxi Provincial State-owned Assets Supervision and Administration Commission with a 49% stake. Weichai Power Holdings has 51%. The so-called "golden industrial chain" is not solid.
Shaanxi Fast Gear and Hande Axle are both monopoly suppliers in China's heavy truck industry, and Fast Group also has plans for an overall listing within three years. Therefore, in the face of Weichai Power's control over the three leading automotive companies in Shaanxi Province, Shaanxi Province has long had the idea of ​​regaining control, because even without the engine support of Weichai Power, Xi'an Cummins can fully constitute the “golden industry†with the above three companies. chain".
With the overall listing of Shaanxi Auto, Shaanxi Province will certainly compete with Weichai Power for a controlling stake in Shaanxi Heavy Gas. If the control of these three “Shaanxi†enterprises is lost, the largest domestic commercial vehicle camp headed by Weichai will face the danger of “dissolutionâ€. Tan Xuguang walked at a new crossroads.