On May 19, Great Wall Motor Company Limited(601633) a shares rose sharply at the end of trading, impacting the limit, and the share price rebounded more than 60% from the low level. On the news side, there are market rumors that Great Wall Motor Company Limited(601633) may acquire Longyan factory of Fujian xinlongma automobile Reporter: no insider of the securities times. On the same day, Great Wall Motor Company Limited(601633) closed at 35.76 yuan / share, up 6.21%
Only official publicity Great Wall Motor Company Limited(601633) or the acquisition of Fujian Xinlong malonyan factory has started the recruitment of production and R & D posts
On the way of capacity expansion, Great Wall Motor Company Limited(601633) continues to run wildly.
“For the acquisition of Longyan factory, Great Wall Motor Company Limited(601633) is handing over to the company.” On May 18, an insider of Fujian xinlongma disclosed to the reporter of daily economic news.
The reporter noted that Great Wall Motor Company Limited(601633) recently issued a number of bidding announcements related to “Longyan factory” and started the recruitment of production, R & D and other related posts in Longyan, Fujian. On May 18, the reporter asked Great Wall Motor Company Limited(601633) for confirmation. The other party only said: “there is no news for release yet.” At the same time, relevant personnel of Fujian xinlongma also said: “we are not clear about the matters related to the company’s cooperation with Great Wall Motor Company Limited(601633) company.”
Although the two sides chose to remain silent, there are various signs that Great Wall Motor Company Limited(601633) the acquisition of Fujian Xinlong malonyan factory seems to be only announced.
Great Wall Longyan factory has started recruitment
The reporter noted that as early as April this year, ” Great Wall Motor Company Limited(601633) Longyan Branch” was registered and established. The legal representative is Feng Gaofeng. The address of the company is No. 8, South Ring Road, Huangtian village, Gaopo Town, Yongding District, Longyan City, Fujian Province. Coincidentally, this address is the same as the official website address of Fujian xinlongma.
Up to now, Great Wall Motor Company Limited(601633) has successively issued many bidding announcements related to “Longyan base”. On April 28, Great Wall Motor Company Limited(601633) issued the bidding announcement of Great Wall Motor Company Limited(601633) Longyan base commercial vehicle road logistics transportation project, which undertook the commercial vehicle transportation business of Longyan factory to Great Wall Motor Company Limited(601633) dealers or Great Wall Motor Company Limited(601633) designated delivery locations all over the country, and disclosed that Longyan factory planned to be put into operation by the end of August 2022.
Then, on May 13, Great Wall Motor Company Limited(601633) issued the bidding announcement of Great Wall Motor Company Limited(601633) Fujian factory coating workshop cleaning project, requiring the whole body coating workshop and all its internal structures and facilities to be thoroughly cleaned within 30 days after entering the site.
As the production time of Longyan plant approaches, Great Wall Motor Company Limited(601633) has started the recruitment of relevant posts. The reporter learned from a recruitment website that Great Wall Motor Company Limited(601633) is recruiting for positions such as “coating process engineer”, “automobile assembly process engineer” and “welding process post”. The Department is Great Wall Motor Company Limited(601633) production technology development center. Prior to that, Great Wall Motor Company Limited(601633) once recruited the posts of “administrative specialist” and other functional departments in Yongding District, Longyan city.
It is worth noting that the location of the above recruitment positions is marked as “Longyan Branch of Fujian xinlongma Automobile Co., Ltd.” in the recruitment information.
Image source: Liepin screenshot
In addition to the posts involved in the production line, Great Wall Motor Company Limited(601633) also recruits “harness development engineer” and other R & D posts in Longyan Xinluo District, with a working address only 3 kilometers away from Fujian xinlongma Automobile Co., Ltd.
Fujian xinlongma is suspected to be semi discontinued
Baoding, Hebei, is nearly 2000 kilometers away from Longyan, Fujian, but this does not prevent Great Wall Motor Company Limited(601633) “winning” Fujian xinlongma.
A person close to Fujian xinlongma said: “as early as April this year, Great Wall Motor Company Limited(601633) has signed an acquisition agreement with Fujian xinlongma. At present, the original plant is being transformed. At the same time, the original Fujian xinlongma employees have received notice and are waiting for re recruitment.”
From the sales data, Fujian xinlongma is suspected to be in a semi shutdown state. According to the information on its official website, its main model brand is “QiTeng”, including N30, EX7, M70, medical vehicle, postal vehicle and other special models. However, according to the data of China Automobile Association, in April this year, Fujian xinlongma only released the sales data of QiTeng M70, which was 337 vehicles, a year-on-year decrease of 53.45%; From January to April, the cumulative sales volume was 1299, a year-on-year decrease of 23.99%.
Public information shows that Fujian xinlongma has an annual production capacity of 150000 vehicles and 150000 engines. “At present, it is still in normal production. We only have Longyan factory, and all models are produced here.” On May 18, relevant personnel of Fujian xinlongma told reporters.
While the capacity utilization rate is low, Fujian xinlongma is also in a dilemma in some terminal sales markets. On May 18, the reporter visited the only Fujian xinlongma sales store in Beijing and found a notice of “suspension of business” posted on the door. The southeast automobile 4S store next to the store, which belongs to the “Fuqi Department”, is also in the state of “suspension of business”.
A staff member in the store told reporters: “at present, affected by the epidemic, the exhibition hall is temporarily closed, and there is also an M70 new energy model produced in November last year.”
want to use the Great Wall to revitalize production capacity
With the halo of “the vehicle factory with the most complete production qualification in Fujian Province” and “one of the three new energy vehicle production bases in Fujian Province”, Fujian xinlongma has not been smooth along the way. Fujian xinlongma, founded in 1997, initially focused on agricultural vehicles. In 2011, it moved to Longyan to build a micro vehicle production base and cut into the micro commercial vehicle market. In 2014, it released QiTeng brand and successively launched a variety of micro card / light truck, micro passenger / light passenger, MPV and SUV models.
However, China’s mini car market has been shrinking in the past decade, including the transformation of SAIC GM Wuling, Jiangling Motors Corporation Ltd(000550) and other car enterprises, while Fujian xinlongma has been a step slower. According to public data, the annual sales volume of Fujian xinlongma was about 11300 in 2015, and the sales volume decreased to 5843 in 2016.
The surplus production capacity has attracted the attention of NEVs (Swedish company of Guoneng electric vehicle). In August 2016, NEVs restructured Fujian xinlongma, which “separated” from Fuqi group.
Then, with NEVs being acquired by Evergrande motor in 2019, its cooperation with Fujian xinlongma also ended.
Qixinbao shows that in the latest ownership structure of Fujian xinlongma, the company is controlled by Fuqi group, with a shareholding ratio of 33.32%. Returning to the Fuqi group, Fujian xinlongma began internal reform. The above-mentioned internal staff of Fujian xinlongma said: “in the past two years, the company has been carrying out internal reform, including market-oriented employment of personnel, adjusting the organizational structure, integrating the technology department into a technology center and other measures.”
In 2021, Fujian xinlongma restarted QiTeng brand and returned to commercial vehicle business. According to the business plan of Fujian xinlongma for the next four years, the company will strive to turn its operating cash flow into positive in 2023 and turn its profit from loss to profit in 2025. In this context, relying on Great Wall Motor Company Limited(601633) to revitalize production capacity may be one of the few options for Fujian xinlongma.
Great Wall continues to challenge the annual sales target of 1.9 million vehicles
When Fujian xinlongma, which has surplus production capacity, meets the Great Wall Motor Company Limited(601633) , which has expanded production capacity, “in-depth cooperation between the two” has become a seemingly reasonable choice.
Over the past year or so, Great Wall Motor Company Limited(601633) has successively “taken over” the former Zhongtai Linyi production base in the Chinese market, and acquired hanteng automobile phase II plant in Shangrao, Jiangxi Province and Hanlong automobile plant in Daye, Hubei Province. According to the available data, Great Wall Motor Company Limited(601633) the total production capacity of the production base nationwide exceeds 2.5 million vehicles.
According to Great Wall Motor Company Limited(601633) “2025 strategy”, by 2025, the global annual sales volume will be 4 million and the operating revenue will exceed 600 billion yuan, of which 80% will be new energy vehicles.
From this point of view, Great Wall Motor Company Limited(601633) capacity expansion will continue. During the “two sessions” this year, Wang Fengying, President of Great Wall Motor Company Limited(601633) group, suggested that for production projects with idle resources and low capacity utilization, but with certain market foundation, transformation and upgrading conditions and outstanding cluster advantages, it is suggested that the local government should take the initiative to introduce powerful automobile enterprises to settle down, and tilt resources in terms of capital and policies, so as to revitalize production capacity and drive the economy.
At present, the production capacity of tank 300 and other popular models of Great Wall Motor Company Limited(601633) has been limited. A few days ago, the Secretary of Great Wall Motor Company Limited(601633) board of directors revealed in response to investors’ questions, “the maximum monthly production capacity of tank 300 is 15000.” According to the tracking data of relevant research institutions, there are still more than 100000 undelivered orders for tank 300.
During the “two sessions” this year, Wang Fengying also said in an exclusive interview with reporters that ” Great Wall Motor Company Limited(601633) whether there will continue to be a merger and reorganization plan” that ” Great Wall Motor Company Limited(601633) will give priority to the development of existing production capacity, actively adjust product structure and increase R & D investment in pure electric technology”.
Affected by the epidemic situation and other factors, the production and sales of Great Wall Motor Company Limited(601633) in the first four months of this year were affected, and the cumulative production and sales were about 341200 and 337300 respectively. On May 16, Great Wall Motor Company Limited(601633) board secretary said in response to investors’ questions: “we have no plan to adjust the sales target at present. In the second quarter, with the development of chips and the improvement of the epidemic situation, Great Wall Motor Company Limited(601633) will still challenge the sales target of 1.9 million vehicles this year.” (source: Daily Economic News)
