After 11 years of “co governance” with Mercedes Benz, this first joint venture Electric brand in China’s car market has returned to Byd Company Limited(002594) .
On December 24, Byd Company Limited(002594) automobile and Daimler Greater China signed an equity transfer agreement on adjusting the structure of its joint venture, Shenzhen Tengshi New Energy Automobile Co., Ltd., to complete the equity transfer of both parties in Tengshi. Upon completion of the transfer, Byd Company Limited(002594) and Daimler will hold 90% and 10% shares of Tengshi respectively. Relevant matters need to be approved by relevant regulatory authorities and are planned to be completed in mid-2022.
” Byd Company Limited(002594) will devote more resources and core technologies to Tengshi’s business and help Tengshi to a new level in product R & D, intelligent manufacturing, channels and sales services.” For the change of equity, some Byd Company Limited(002594) insiders disclosed that Tengshi plans to launch three new models in the Chinese market in the next two years, including MPV and SUV. Among them, a new car will be put on the market in 2022.
As for after-sales and channels, Daimler confirmed to the associated press that “it will return to Byd Company Limited(002594) management”.
According to public information, in May 2010, Byd Company Limited(002594) signed a contract with Daimler to establish Shenzhen Byd Company Limited(002594) Daimler New Technology Co., Ltd. with equal shares. In March 2012, Tengshi brand was officially released; In October of the following year, the first mass production vehicle Tengshi 300 developed on the basis of Mercedes Benz B200 platform was put on the market. In the following February 2017, March 2018 and July 2019, the replacement models Tengshi 400, 500 and X were listed successively.
After the completion of this equity transfer, Byd Company Limited(002594) with absolute control will determine the future of Tengshi. According to Daimler’s official statement, ” Byd Company Limited(002594) will give greater support to Tengshi in operation to promote its success in the future. At the same time, Daimler will still support Tengshi’s sustainable development as a shareholder”.
“There is just a gap between ( Byd Company Limited(002594) ) Han and Tang Dynasties. Tengshi can make up for this range and make the market system of Byd Company Limited(002594) more complete.” Insiders said that with the continuous additional investment of both shareholders, Tengshi still maintained the attribute of high-quality assets, but lacked a popular product to “realize” this high-quality asset.
Prior to the official announcement of the news by Bi and Dai, Byd Company Limited(002594) announced on the same day that the holding subsidiaries Byd Company Limited(002594) automotive industry and Daimler planned to increase the monetary capital of Tengshi new energy by 1 billion yuan respectively according to the shareholding ratio. After the capital increase by shareholders of both parties is completed, Byd Company Limited(002594) automotive industry and Daimler will continue to hold 50% equity of Tengshi new energy respectively.
This is the 12th capital increase since Tengshi in 2012. According to the statistics of the financial Associated Press, from 2012 to 2021, Daimler and Byd Company Limited(002594) successively increased capital for Tengshi 12 times, with a total capital increase of more than 7 billion yuan. Before the equal capital increase of RMB 1 billion, the latest capital increase occurred in January 2020. At that time, Byd Company Limited(002594) announced that through the resolution of the board of directors, Byd Company Limited(002594) automobile decided to increase the capital of Tengshi new energy by 350 million yuan.
However, the continuous blood transfusion of shareholders still can not save the declining trend. According to the financial report of the first half of 2021, Tengshi brought a net loss of 65.8 million yuan to Byd Company Limited(002594) in the current period.
Sales also show this. According to the sales data of Gaishi Automobile Research Institute, the cumulative sales volume of Tengshi was only 18258 from 2014 to 2020. Among them, the sales volume was 2888 in 2015 and 2287 in 2016, a year-on-year decrease of 21%. In 2017, when the modified model Tengshi 400 was launched, Tengshi recorded the highest sales volume of 4713 vehicles since its establishment. Then, in 2018 and 2019, after the delisting of Tengshi 500, the sales volume fell sharply to 1974 vehicles and 2089 vehicles respectively.
In June 2019, Daimler’s joint venture in China, Beijing Benz, announced that it would take over part of the business of Tengshi brand from July 1 of that year. At the same time, the first new car of Tengshi in five years would be mass produced and delivered at the beginning of 2020. Since then, the sales volume of Tengshi x, a new car included in the sales channel of Beijing Benz, has rebounded in 2020, but the sales volume of that year was only 4175.
For the change of share ratio, Daimler and Byd Company Limited(002594) will jointly plan the future development of Tengshi, and Daimler and Byd Company Limited(002594) will continue to promote the successful long-term partnership between the two sides in terms of battery supply.
(Financial Associated Press)
