Teng Shi born with a “golden spoon” is like the disappointing child raised by Byd Company Limited(002594) and Daimler, and the two “parents” are also considering who will continue to “support” 11-year-old Teng Shi.
The reporter of Beijing business daily learned that Byd Company Limited(002594) has signed an equity transfer agreement with Daimler on adjusting the structure of its joint venture Shenzhen Tengshi New Energy Vehicle Co., Ltd. (hereinafter referred to as “Tengshi”). After the completion of the transfer of , Byd Company Limited(002594) and Daimler will hold 90% and 10% equity of Tengshi respectively, and the equity transfer is planned to be completed next year.
Tengshi, with the endorsement of Daimler and Byd Company Limited(002594) , was once one of the representatives of high-end electric vehicles in China, but it has become more and more on the edge of the car market in recent years. This adjustment of equity ratio is also considered as the last fight in the industry. at present, the new energy vehicle market does not seem to have much time for Tengshi.
hand in hand for 11 years
Byd Company Limited(002594) and Daimler jointly announced that both parties have signed an equity transfer agreement on adjusting the structure of Tengshi and intend to complete the equity transfer of both parties in Tengshi. After the completion of transfer, Daimler and Byd Company Limited(002594) will hold 10% and 90% shares of Tengshi respectively, and the equity structure held by both parties has been broken.
It is revealed that after this adjustment, the development of Tengshi will be dominated by Byd Company Limited(002594) . “Relevant matters need to be approved by relevant regulatory authorities and are planned to be completed in the middle of next year.” The relevant person in charge of Daimler said that as a pioneer of new energy vehicles, Tengshi has made steady development with the joint efforts of shareholders. Byd Company Limited(002594) will give greater operational support to Tengshi to promote its success in the future. Daimler will continue to support the sustainable development of Tengshi as a shareholder. Daimler and Byd Company Limited(002594) will continue to promote their successful long-term partnership.
It is understood that in May 2010 Byd Company Limited(002594) signed a contract with Daimler to establish Shenzhen Byd Company Limited(002594) Daimler New Technology Co., Ltd. in the proportion of 50%: 50%; In March 2012, Tengshi brand was officially released; In 2014, Tengshi launched its first new car, which is positioned as a medium and high-end new energy model.
At that time, Daimler and Byd Company Limited(002594) jointly launched the Tengshi brand. On the one hand, they hoped that the brand could become a new profit point for both sides, and on the other hand, they could learn from each other in technology.
however, after 11 years of holding hands with shareholders, Tengshi failed to become a first-line new energy vehicle brand in China. Tengshi develops slowly in terms of product renewal iteration, sales performance and marketing. Although Tengshi has launched Tengshi 300, Tengshi 400 and Tengshi 500 models, they are actually based on the improvement of the first model . In the context of no replacement models, Tengshi’s sales continued to be depressed.
In order to pull Tengshi back from the edge of the market, Daimler chose to sell in 2019 and announced that Beijing Benz sales company would take over part of Tengshi’s business. in addition to product R & D and manufacturing, Tengshi’s sales, service, marketing and communication, network construction and other businesses are incorporated into Mercedes Benz sales company.
Subsequently, Tengshi launched a new model, Tengshi x, which is divided into pure electric version and hybrid version. However, Mercedes Benz’s sales channel has not become a bonus for this “homologous” model with Byd Company Limited(002594) Tang. According to the data of , the sales volume of Tengshi X in the first 11 months of this year was only 4268 . A Mercedes Benz 4S store salesperson told the Beijing Business Daily: “the sales volume of Tengshi x pure electric model is not ideal after it is launched. It can’t sell a few cars a month. At present, it has been discontinued.”
Yan Jinghui, a member of the expert committee of China Automobile Circulation Association, said that the establishment of Tengshi brand for many years did not return Daimler’s investment, and there was no improvement with the help of Mercedes Benz channel in 2019. Now, by adjusting the equity ratio and handing over the main control to Byd Company Limited(002594) who knows more about the Chinese market, on the one hand, it can reduce its own burden, on the other hand, it also hopes that Tengshi can find a development path more flexibly.
“blood transfusion” to make up for losses and find vitality
Byd Company Limited(002594) while adjusting the equity structure of Tengshi with Daimler, how to awaken the brand has become the focus of attention.
In this regard, while both shareholders signed the equity transfer agreement, Byd Company Limited(002594) announced that the board of directors of Byd Company Limited(002594) had considered and approved the monetary capital increase of Tengshi by its holding subsidiaries Byd Company Limited(002594) automotive industry and Daimler. This means that Tengshi will receive a total capital injection of 2 billion yuan from both shareholders.
In the face of sluggish sales, Tengshi continued to lose money. According to statistics, Tengshi lost 1.3 billion yuan, 477 million yuan and 888 million yuan respectively from 2016 to 2018. The cumulative loss of Tengshi in recent five years has exceeded 3.5 billion yuan . And Byd Company Limited(002594) and Daimler also continued to “transfusion” for Tengshi. from 2012 to 2021, both shareholders increased capital for Tengshi 12 times, with a total capital increase of more than 7 billion yuan. according to the insiders, with the equity structure adjustment, the capital injection of 2 billion yuan obtained by Tengshi may be the last effort made by Daimler and Byd Company Limited(002594) in terms of capital .
The announcement shows that the capital increase of RMB 2 billion will be mainly used for the daily operating funds of Tengshi, which is conducive to promoting the sustainable development of Tengshi new energy vehicle business and providing financial support for Tengshi new energy to build higher quality and more competitive products.
It is worth mentioning that with the funds in place, Tengshi’s product planning has also been put on the agenda.
It is understood that at present, there is only one model of Tengshi x under Tengshi, which is mainly sold and serviced by Mercedes Benz dealers. The relevant person in charge of Daimler said that Tengshi will launch a new model next year to further expand the new energy vehicle market. Tengshi’s operation team will ensure that existing Tengshi customers can continue to receive relevant customer services. In addition, it is reported that Tengshi will launch three new models in the next two years, including MPV and SUV.
In fact, Byd Company Limited(002594) has always been a must for the high-end new energy vehicle market. It is reported that a new high-end brand will be launched next year. The price range of the high-end brand model is expected to be RMB 500000-1 million, and it will operate independently in terms of brand, products, sales service network, operation team, etc. At the same time, Byd Company Limited(002594) automobile business will be composed of “Dynasty network”, “Ocean network”, Tengshi and high-end brands.
Yan Jinghui said that in recent years Byd Company Limited(002594) has been planning to attack the high-end market. In addition to launching new brands in the future, Tengshi has also become one of the starting points. Although the development of Tengshi has not been smooth for many years, it is mainly due to the lag in the promotion of models. After Byd Company Limited(002594) takes control, it is bound to use its own technical advantages to help Tengshi improve product R & D and intelligent manufacturing.
(Beijing business daily)
