According to the news from Chongqing Qin’An M&E Plc(603758) recently, the relocation of the company’s headquarters base and new energy base has entered the full start-up stage. According to the plan, the centralized relocation of production equipment will be carried out after the Spring Festival. In addition, the installation, commissioning and normal operation of the two production lines have been completed before, and the overall settlement is expected to be completed in the first half of 2022.
It is understood that the construction of headquarters base and new energy base is an important part of the overall development strategy of Chongqing Qin’An M&E Plc(603758) “reengineering and upgrading”. After the construction and operation of the new base, it will be conducive to the expansion of existing project products, the upgrading of follow-up products and the implementation of Meifeng Qin’an new energy vehicle drive system project, a wholly-owned subsidiary. The headquarters base is used to undertake the functions of existing business and R & D center, and also produce basic parts for new energy vehicle drive system; The new energy vehicle drive system base is used to develop and produce the new energy vehicle drive system (hybrid drive system assembly); There are also shared projects such as technical center, experimental center and customer reception center.
According to the relevant person in charge of the company, the new base was started in June 2020. At present, all construction work has been completed one by one. Considering that there are many fixed assets and heavy value, it is difficult to relocate; At the same time, with the recovery of production and sales in the automotive industry and major customers, the increase of orders and the possible delay of product delivery caused by line suspension and relocation, the company has reasonably arranged the relocation plan of production equipment after careful arrangement and preparation: on the one hand, actively carry out product storage to ensure customer supply, reduce product delivery risk and alleviate delivery pressure; On the other hand, the combination of step-by-step relocation and delayed relocation is adopted to ensure the seamless connection between the production and operation of new and old bases.
When it comes to why the hybrid system is chosen as the development direction of the company’s new energy strategy, Chongqing Qin’An M&E Plc(603758) the person in charge said that after long-term close tracking and comprehensive comparison, the company believes that the future automotive power will show a diversified development pattern, and various technical routes have advantages over each other, but the market competitiveness of the hybrid system will be stronger without government subsidies. It is estimated that by 2035, the sales of energy-saving vehicles and new energy vehicles in China will account for half respectively, of which hybrid passenger vehicles will account for 50% to 60%, with broad market space. The excellent performance, good energy conservation and emission reduction and increasingly mature supply chain of the hybrid system are closely in line with the company’s deep heritage in the fields of engine and reducer and its ability to integrate international resources in motor and electronic control, and can forge new core competitive advantages through coordinated development. In addition, the motor and electric control technology in the hybrid system can also be used in the field of pure electric.
It is revealed that since the ignition of the first hybrid special engine prototype was completed in March 2021, the company has continuously completed the offline operation of the hybrid special reducer and the A-Sample manufacturing of five components of the hybrid drive system. Next, the company will continue to steadily promote the A-Sample manufacturing of other components of the hybrid drive system and the test and testing of motors and electronic control products, and plans to start the carrying test of relevant customers as soon as possible in 2022.
By the end of September 2021, Chongqing Qin’An M&E Plc(603758) monetary fund balance had reached 1.070 billion yuan, accounting for 34.94% of the total assets, far higher than the average level of 14.86% of the auto parts industry, and the net cash flow from operating activities in the first three quarters had also reached 258 million yuan. After the cessation of futures investment, the stable financial foundation and abundant cash flow have laid a solid material foundation for the company to implement the new energy strategy and actively repay investors.
