Zhidou, once the “king of micro electric vehicles”, may return to the market after delisting for many years.
Recently, Yinyi Co.Ltd(000981) ( Yinyi Co.Ltd(000981) , SZ; yesterday’s closing price of 1.41 yuan), which is in the midst of the storm of reorganization, announced that in order to accelerate the company’s strategic deployment in the field of new energy vehicle manufacturing and enhance the company’s core competitiveness and sustainable development ability, it plans to invest no more than 400 million yuan to participate in the reorganization of Zhidou automobile.
Yinyi Co.Ltd(000981) said that at present, it has signed a memorandum with the manager of Zhidou automobile, that is, the company intends to act as the new reorganization investor of Zhidou automobile, obtain the actual control and independent operation right of Zhidou automobile, and realize the regeneration of Zhidou automobile.
” Yinyi Co.Ltd(000981) participating in the reorganization of Zhidou automobile has a certain relationship with the broad development prospect of micro electric vehicle market. He is optimistic about the huge development space of this segment market and the production qualification of Zhidou automobile, which are very valuable assets.” Cui Dongshu, Secretary General of the national passenger car market information joint committee, said in an interview with the reporter of the daily economic news. However, as a “White Knight”, Yinyi Co.Ltd(000981) still has the risk of being terminated from listing, and it is unknown whether Zhidou automobile can make a turnaround.
value Zhidou production qualification
The reason why Yinyi Co.Ltd(000981) is involved in the reorganization of Zhidou automobile is closely related to the production qualification of new energy passenger vehicles held by the latter.
“Although Zhidou has been out of the market for many years, it still has production qualification, production capacity and other resources. After Yinyi Co.Ltd(000981) takes over, it can effectively revitalize these resources and make effective use of the production qualification and production capacity of the automobile industry. It is a very valuable thing.” Cui Dongshu said.
Public information shows that Zhidou automobile was jointly established by xindayang Electromechanical group and Geely Holding Group in 2015 to launch Zhidou automobile D series models. Zhidou automobile covers the R & D, production, sales, operation and other businesses of electric vehicles. Zhidou automobile’s official website shows that it is the only eight enterprises with independent and complete new energy vehicle production qualification approved by the national development and Reform Commission and the Ministry of industry and information technology.
Zhidou automobile is headquartered in Ninghai County, Ningbo, Zhejiang Province. Its core asset is its wholly-owned subsidiary Lanzhou Zhidou Electric Vehicle Co., Ltd. (hereinafter referred to as Lanzhou Zhidou). Lanzhou Zhidou has independent new energy passenger vehicle production qualification and obtained the reply of the national development and Reform Commission on the approval of the construction project of Lanzhou Zhidou Electric Vehicle Co., Ltd. with an annual output of 40000 pure electric passenger vehicles on February 28, 2017. The Lanzhou base covers an area of more than 800 mu, It has a complete new energy vehicle production line and professional equipment, and has normal vehicle production and operation conditions. Ninghai base covers an area of 563 Mu and has the qualification of non independent new energy vehicle production. At present, the new energy vehicle assembly workshop built in the base has been completed.
In addition, the rapid development of China’s micro electric vehicle market in recent years is also an important reason to attract Yinyi Co.Ltd(000981) into the market. According to the data of China Passenger Car Association, the sales volume of micro electric vehicles in China has increased from 28000 in 2013 to 890000 in 2021, becoming a major growth point in the new energy vehicle market.
According to Cui Dongshu, the sales volume of micro electric vehicle market will remain at a high level this year, which is expected to reach about 1.5 million, with huge market demand and growth potential.
“In the next five years, the micro electric vehicle market will still be in the rising channel. It is not surprising that Zhidou, as a former leader in this market, has capital attention and participation.” Auto analyst Ren Wanfu told reporters.
In fact, Zhidou automobile is one of the automobile enterprises that stepped into the field of micro electric vehicles earlier. According to the data, from 2015 to 2017, the annual sales of Zhidou vehicles were 25300, 24000 and 43000 respectively. Among them, Zhidou D2 ranked sixth in the global new energy vehicle sales list in 2017, comparable to traditional vehicle enterprises. However, the good times did not last long. With the decline of national new energy vehicle subsidies in 2018, Zhidou automobile sales began to decline all the way, and fell into turmoil such as sharp decline in production and sales and arrears of wages. Finally, it came to the situation of bankruptcy and reorganization in 2019, and then slowly faded out of the public view.
reorganization related to Geely
Yinyi Co.Ltd(000981) the latest announcement shows that the company has entered the implementation stage of the reorganization plan. If the company cannot or does not implement the reorganization plan during the implementation of the reorganization plan, the company will be declared bankrupt and liquidated by the court. If the company is declared bankrupt and liquidated by the court, according to the stock listing rules of Shenzhen Stock Exchange (revised in 2022), the company’s shares will face the risk of delisting.
Yinyi Co.Ltd(000981) and Zhidou automobile, two poorly managed companies, have Geely background Yinyi Co.Ltd(000981) ‘s reorganized investor, zihejinxin equity investment partnership (limited partnership) (hereinafter referred to as zihejinxin), includes Chiji holding group, Geely maijie Investment Co., Ltd. (hereinafter referred to as Geely maijie), Qingdao Haili Huiyin investment partnership and Ningbo Yingong venture capital partnership, among which Geely maijie is subordinate to Geely Holding Group.
Zhidou automobile is jointly established by xindayang Electromechanical group, Geely Holding Group, Ninghai Yinshi investment fund and Jinshajiang venture capital fund.
According to sources, the combination of Yinyi Co.Ltd(000981) and Zhidou automobile has a lot to do with Geely Yinyi Co.Ltd(000981) participated in the reorganization of Zhidou automobile with 400 million yuan, and Geely’s investment in Yinyi Co.Ltd(000981) was returned to Zhidou automobile invested by Geely, which is likely to be the agreement made by Geely when participating in Yinyi Co.Ltd(000981) reorganization at that time.
In this regard, the reporter contacted the relevant persons in charge of both sides for confirmation, and neither side responded. However, Yinyi Co.Ltd(000981) seems to be deepening its bond with Geely Yinyi Co.Ltd(000981) said that through its wholly-owned subsidiary, it plans to invest 260 million yuan to acquire part of the equity of xiaolinggou Travel Technology Co., Ltd. (hereinafter referred to as xiaolinggou travel). Xiaolinggou travel is also a company invested by Geely, and its third largest shareholder is Hangzhou Puzhao Technology Co., Ltd., which is 100% owned by Geely. Meanwhile, the sixth largest shareholder of xiaolinggou travel is Zhidou automobile.
Due to the existence of related party transactions, the acquisition case also attracted the attention of Shenzhen Stock Exchange, asking questions one by one about the overestimation and potential benefit transmission involved in Yinyi Co.Ltd(000981) related acquisitions. As of press time, Yinyi Co.Ltd(000981) did not reply.
Zhidou can take the opportunity to turn over the sector
In fact, Yinyi Co.Ltd(000981) which started from real estate has been looking for new pillar industries. Until 2016, Xiong Xuqiang, the leader, opened the road of transformation and transformed Yinyi Co.Ltd(000981) a listed company with single main business of real estate into a comprehensive company with double main businesses of “real estate + high-end manufacturing”.
In that year, Yinyi Co.Ltd(000981) spent 12 billion yuan to acquire three industry-leading foreign auto parts manufacturers – arc of the United States, Elliott of Japan and Bunge of Belgium, and injected two of them into Yinyi Co.Ltd(000981) shares. At present, Yinyi Co.Ltd(000981) ‘s main business is the R & D, production and sales of auto parts, and is committed to the R & D and production of hybrid and pure electric powertrain systems.
Yinyi Co.Ltd(000981) said that the proposed participation in Zhidou automobile restructuring is an important strategic deployment made by the company based on its own advantages in the field of new energy vehicles, forming an obvious synergy with the company’s existing auto parts manufacturing business, and an important measure of the company’s long-term strategic layout. At the same time, this investment also helps to enhance the company’s core competitiveness and sustainable development ability, which is in line with the long-term development interests of the listed company and all shareholders.
For Zhidou automobile, with the help of Yinyi Co.Ltd(000981) “White Knight”, it can not only revitalize the production capacity and production qualification, but also hope to regain a new life in the vast micro electric vehicle market.
However, it is worth noting that at present, more and more car enterprises are seizing the attractive cake of the mini car market. With the continuous filling of players, the decline of subsidies and other factors, the competitive environment of this segment market is also more challenging.
According to the latest subsidy policy for new energy vehicles, the subsidy standard for new energy vehicles in 2022 will decline by 30% from that in 2021. Among them, there is no subsidy for cars with a range of less than 300km; The mileage of electric cars will be reduced by 3900 ~ 300km. This will undoubtedly add some difficulty to the sales of micro electric vehicles.
In addition, in the context of soaring prices of raw materials for power batteries, micro electric vehicles with “cost-effective” advantages will face challenges. Recently, due to the continuous sharp rise in the price of upstream raw materials and other factors, “wanghong” micro electric vehicle Wuling Hongguang miniev has recently announced a price increase ranging from 4000 yuan to 8000 yuan.
“Consumers in the micro electric vehicle market are highly price sensitive. The rise in the price of raw materials has promoted the rise in the price of micro electric vehicles. Coupled with the impact of the epidemic, it may combat the desire of some consumers to buy cars. Therefore, it is expected that the market scale of micro electric vehicles this year will be between 1 million and 1.1 million.” Ren Wanfu said.
In Ren Wanfu’s view, Zhidou automobile delisted in 2019 due to its poor operation, and the micro electric vehicle market has changed greatly in three years. For Zhidou automobile, it is difficult to return to the peak, but there is still great hope to survive.
