Chapter 1156 JAC
After finalizing Hynix's future development strategy and Xu's future layout in South Korea, the two went to Hynix's industrial park together.
We walked around the factory, chatted with company executives, and had dinner together.
The next day, Xu Liang led the company's senior management for another team building session, and Xu Liang's inspection of Hynix came to an end.
As the person behind the scenes, he only needs to make sure that there are no problems with Hynix's strategy, that there are no major setbacks in the company's management, and that there are no loopholes in the financial fundamentals. The rest can be left to Sun Mingzhen and Hynix's senior management.
……
"Torch and Wanxiang join hands to build a world-class auto parts giant." - Sina.
"The birth of China's largest auto parts giant." - CCTV Finance.
"Strengths join forces to create a new legend for China's automobile industry." - NetEase.
"A monopoly giant that occupies 45% of China's auto parts industry." - Southern Evening News.
Xu Liang looked through the online reports.
The negotiations between Torch and Wanxiang have been going on for more than two months since May.
The two sides disagreed on the acquisition methods, payment methods, and management, and the debate was fierce.
Lu Guanqiu also called him frequently.
Now the dust has finally settled.
Overall, the development of Wanxiang Qianchao is still very good.
The just-released mid-year report shows.
Wanxiang’s total assets are 4.908 billion Chinese coins.
Shareholders' equity, that is, net assets, is close to 1.7 billion Chinese dollars.
The total revenue in the two quarters of 2007 was 3.25 billion Chinese dollars, and the net profit of the main industry was 243 million Chinese dollars.
In comparison, Torch Group's three major businesses, Torch Auto Parts, Torch Power Tools, and Torch Garden Machinery, had a total revenue of 7.97 billion Chinese dollars in the second quarter of 2007.
Because of the acquisition of the American Maori Company, the U.S. garden machinery market alone provided the company with sales of US$470 million.
In terms of auto parts, Torch Auto Parts is undoubtedly the largest auto parts giant in China, and its business scale is still larger than Wanxiang.
The result is that Torch Group's business revenue is almost 2.5 times that of Wanxiang.
In terms of net profit, the integration of Torch Group is not satisfactory, slightly weaker than Wanxiang.
But there are also 554 million Chinese coins.
Both parties are in the machinery industry, so valuations are relatively easy.
Wanxiang Qianchao, which was listed in 1994, has a total market value of 32.7 billion Chinese dollars.
According to the agreement reached between the two parties, the assets divested by Torch are valued at 75 billion Chinese dollars.
Wanxiang Qianchao wants to take advantage of the assets spun off by Torch. It’s not like a snake swallowing an elephant, but it’s not too far off.
It must be difficult to just rely on the universal money tide.
But behind the Wanxiang money wave is the Wanxiang Group.
The latter holds 61.5% of the former's shares.
According to the agreement reached by both parties.
Wanxiang Group acquired 51% of the equity of Torch Machinery Assets for 38.3 billion Chinese yuan.
After the merger of Wanxiang Qianchao and Torch Machinery Assets, Wanxiang Group holds 54.23% of the new company's equity and is undoubtedly the largest shareholder.
Torch Group holds 34.07% of the new company's equity and is the company's second largest shareholder.
The rest is held by investors.
After the merger, the new company was renamed Wanxiang Torch, and its annual sales soared to more than 20 billion Chinese dollars, accounting for nearly 45% of China's auto parts market.
Although it is not as good as the monopoly giant described in the sensational media.
But it also widens the qualitative gap with the third place.
Even after the new company resumed trading, the stock price also continued to rise.
In just a few days, it hit seven consecutive daily limits.
This directly caused the new company's market value to exceed 160 billion Chinese coins.
Hanhua Securities also made a lot of money as the underwriter of Wanxiang Torch.
Moreover, apart from a small part of Wanxiang Group's 38.3 billion Huaxia currency acquisition funds, Hanhua helped resolve most of it.
Not only did they contact Guangdong Development Bank, Standard Chartered Bank, and ICBC to provide a loan of 20 billion Hua Xia Yuan.
It also helped Wanxiang issue a corporate bond worth 12 billion Chinese yuan.
The total service fees and consulting fees earned hundreds of millions of Chinese dollars.
I ate a big one in one go.
Xu Liang took out his phone and called Torch CEO Peng Zhiyu.
The call was picked up within a few seconds of ringing.
"Mr. Xu."
"Lao Peng, did you answer the phone so quickly?"
"Haha, I was about to call, and you called me."
There was excitement in Peng Zhiyu's tone.
The deal with Wanxiang will definitely not be exciting. After all, what he is selling is the property he has worked so hard to manage.
"Did the negotiation with Jianghuai succeed?"
"The progress is very fast, and the transaction price has almost been negotiated. The main discussions now are payment methods, JAC's later development, management and employee placement, and later welfare guarantees.
Also, after we promised not to withdraw JAC’s production base from Hui Province and would continue to invest in expansion, Hui Province was also very supportive. ”
Listening to his excited tone, Xu Liang smiled lightly.
Of course Hui Province supports it. He specifically authorized SMIC to negotiate with Hui Province to invest US$5 billion in Luzhou in 2009 to build a 12-inch, 10 wafers/month, 45nm wafer chip foundry.
This is US$5 billion, and JAC's current market value is just over 40 billion Chinese dollars.
For the government, it has not lost JAC's profits and taxes, but can also get a US$5 billion technology investment.
Naturally, I am absolutely sure.
“After the wholly-owned acquisition of JAC, the truck business was merged into the Torch truck business segment, and the passenger car business was established as a separate subsidiary.
In the auto parts segment, the core production and research and development of engines and gearboxes will be retained, while non-core businesses will be sold to Wanxiang Torch. ”
"Okay."
"Also, Wanxiang Torch's 34.07% shareholding is too much. You will sell half of it within the next year."
"Mr. Xu, is that too much? Wanxiang Torch is now a domestic monopoly auto parts giant, occupying nearly half of the national auto parts market, and Torch also purchases parts from them.
Whether from an investment perspective or to ensure the security of the company's industrial chain, sufficient shares should be maintained to ensure the existence of Torch in Wanxiang Torch. ”
"Lao Peng, your suggestion is good, but the domestic stock market is already a bit too high. A temporary exit is a better buy in the future."
Peng Zhiyu suddenly understood and agreed quickly without asking any more questions.
He has always admired the big boss's investment ability.
"Mr. Xu, when do you think the domestic stock market will correct?"
"Why, are you planning to come in and make a fortune?" Xu Liang said with a smile.
"Haha, the risk of the stock market is too high, so I'd better forget about my ability. The main thing is the acquisition of JAC Motors. Originally, I planned to acquire it all in cash.
If you judge that the domestic stock market will correct, I would like to issue a corporate bond through Hanhua.
When the stock market corrects, it will definitely affect the bond market.
A 100 yuan bond will definitely be discounted.
When the time comes, I can buy these bonds back and make a profit. ”
Xu Liang heard this and was somewhat impressed by this guy.
"Okay, Lao Peng. He also said that he doesn't understand finance and the stock market, but he's so good at buying low and selling high."
"You think too highly of me. If it weren't for your prediction of the future trend of the financial market, I wouldn't dare to do it here."
Xu Liang smiled and said, "Contact Hanhua. You can decide how many bonds to issue. As for the time, it can be three to five years. The interest rate can be slightly higher than similar bonds in the market, and it will be easier to sell when the time comes." ”
"Understood." After the two chatted for a while, Xu Liang hung up the phone.
I retrieved JAC data from Hanhua's database and looked at it again.
The predecessor of Jianghuai Automobile Group was the Luzhou Jianghuai Automobile Manufacturing Plant founded in 1964.
There are also some legendary stories in the middle.
In 1958, in order to build the Chaohu Gate, Hui Province established the Chaohu Gate Machinery Repair Factory, which was responsible for repairing and maintaining the gate machinery.
After successfully completing the task of building the Chaohu Gate, in order to accommodate workers, the relevant parties proposed the idea of upgrading the Chaohu Gate Machinery Repair Shop into an auto parts factory.
On May 20, 1964, Chaohu Auto Parts Factory was officially established.
When it first started, the Chaohu Auto Parts Factory mainly produced some parts for FAW Jiefang and Nanjing Automobile Yuejin, but did not yet have the ability to manufacture complete vehicles.
In the same year, through the matchmaking led by China Automobile Corporation, Jinling Automobile Manufacturing Plant transferred the 1-ton off-road vehicle and G492 automobile engine to Chaohu Auto Parts Factory at no cost.
Hui Province wrote a report to the superiors: Leader, we also want to build cars.
Check out the 16-9 book bar and see the correct version!
The above said: You are thinking too much.
Huixiang’s little face tightened: I want it.
Not only do they say so, but the old people in Huizhou Province also do this.
In 1968, in order to promote the development of the automobile industry, Hui Province established the Provincial Automobile Group.
It was in this year that JAC people developed and trial-produced two HF270 engines and a 2.5-ton HF130 light truck with the help of patchwork equipment and technical personnel and workers supported by all parties.
This was the first car manufactured in Hui Province. Its successful trial production opened the curtain on the development of Hui Province's automobile industry.
In 1969, Chaohu Auto Parts Factory produced the first batch of 20 cars, which were named "JAC".
Later, Chaohu Auto Parts Factory was renamed as Jianghuai Automobile Manufacturing Factory.
Jianghuai Automobile began to emerge in the Chinese automobile industry.
In the 1980s, during the transition from a planned economy to a market economy, JAC fell into unprecedented difficulties and was even on the verge of bankruptcy.
In that era, bus chassis were generally modified from truck chassis, which lacked safety and comfort.
JAC people saw this market pain point and put forward the strategy of "focusing on the development of special chassis for passenger cars and developing complete vehicles in a timely manner".
To this end, the factory sold its engine production line in exchange for 3 million yuan in start-up capital.
Since then, JAC Motors has embarked on its second entrepreneurial journey without hesitation.
Through repeated technical explorations and hand-made work, it was not until 1990 that JAC finally developed China's first truly special chassis for passenger cars, the HFC6700, which filled the gap in the market for special chassis for passenger cars in China. Become famous.
The whole process is no different from the process of polishing firearms by old watchers on the Internet thirty years later.
The tools were crude and the environment was harsh, but it was done.
After that, JAC Motors continued to focus its research and development on chassis design, and successively developed new products such as the first rear-engine chassis in China. It became the king of domestic passenger car chassis in the field of special chassis for passenger cars.
In 2003, JAC's passenger car chassis was rated as one of the 50 most influential products for the 50th anniversary of the Chinese automobile industry.
Of course, JAC Motors has not forgotten its roots - trucks.
In 1996, JAC's light truck "Shuai Ling", code-named HFC1061, was launched on the market, creating a trend of China's light trucks becoming sedans.
In the same year, JAC Motors took over the Luzhou Bus Factory.
Passenger cars and trucks are moving forward hand in hand, and JAC Motors is showing a prosperous image.
In 1996, JAC Motors and Hyundai Motor Group joined hands in the field of passenger trucks. In 2001, they further cooperated on the Ruifeng commercial vehicle project, and in 2003, they launched a heavy-duty truck cooperation project.
In March 2002, Ruifeng commercial vehicles officially rolled off the production line.
In October 2003, the first heavy-duty truck named Gerfa rolled off the production line, marking the formation of JAC's light, medium and heavy-duty commercial vehicle product lines.
Now, JAC's vehicle production capacity has reached 450,000 units.
In 2007, the company produced and sold more than 200,000 vehicles of various types, achieving sales revenue of 14.273 billion Chinese yuan.
The net profit of the main industry is 380 million Chinese dollars.
The sales volume of special chassis for passenger cars has ranked first in the country for 13 consecutive years.
JAC light truck ranks first among similar products in terms of brand loyalty and reputation, and ranks second in market share. In 2006, it sold 210,000 units, second only to Foton light truck with 290,000 units.
Gerfa heavy-duty trucks are also very successful. In 2006, production and sales ranked first in the industry with an increase of more than 500%.
In April this year, Gerfa made another effort, with production and sales exceeding 1,000 units, a year-on-year increase of approximately 400%, and the growth rate once again ranked first in the industry.
Although Torch, China Heavy Duty Truck, and Dongfeng still firmly occupy the top three of China Heavy Duty Truck's sales list, their brands have accumulated such sales for many years.
‘Gerfa’ has been officially on the market since 2005, and it has only been two years now.
Progress is too fast.
Of course, everything happens for a reason.
First of all, domestic heavy-duty trucks generally use traditional heavy-duty truck technology platforms, while JAC Gelfa heavy-duty trucks use the heavy-duty truck technology platforms of Germany's Dyke Company and South Korea's Hyundai Company.
Compared with some heavy-duty truck technologies introduced in the 1980s, its level is far ahead.
Secondly, although it has not been in the heavy truck industry for a long time, JAC has more than 40 years of chassis and light truck manufacturing history.
The three major parts of a car are the engine, gearbox and chassis.
As long as one of the three is used, you can create a good car.
Finally, advanced production lines, 6,000-ton hydraulic presses, and fully automatic robot welding lines.
You must know that it was only after he took over that Torch began investing heavily in technological transformation of its automobile factories last year.
Refeng commercial vehicle is also a flagship product of JAC.
In the MPV field, in the two quarters of this year, the Yangcheng Honda Odyssey ranked first with sales of 22,500.
The GM Buick GL8 ranked second with sales of 21,200.
JAC Ruifeng ranked third with sales of 20,600.
It can be said that there is not much difference in sales between the three companies.
If you put some effort into marketing, Ruifeng Commercial Vehicles will be number one.
Although the 'Ruiying off-road vehicle' launched last year is not as popular as the Ruifeng commercial vehicle, which is among the top four SUVs such as Haval, Tiggo, CRV, and Tucson, it still sold 4,000 units in the two quarters of this year, ranking ninth in the country in sales. , there is not much difference with the JMC Landwind and Nissan Paladin in front.
He still vaguely remembered that when he had just graduated and started working in his previous life, the manager in charge of his department drove a Rui Ying.
When the guy who often makes dirty jokes evaluates 'Rui Ying', the word that often comes to his lips is 'ugly'.
Not only is the appearance ugly, the interior is even uglier.
For China in this era, put aside those extremely expensive imported cars.
In the same class, JAC has good vehicles, but the design is too poor.
To be honest, you don’t know how to design and you can’t afford a top designer, but you still don’t know how to copy homework?
Take a look at the BYAT F3, with cumulative sales exceeding three million units in fifteen years.
There are also BAIC and Zotye, which can be called the ‘kings of copycats’.
You can't even copy homework, and you haven't made any progress in designing on your own.
If you are not unlucky, there is no justice for you.
It's a pity that Ruiying and Ruifeng were both popular for a while and laid a good foundation, but they couldn't follow up.
Keep looking back.
"Bin Yue?!"
Information shows that JAC has developed a medium-sized car and is preparing to launch it in November this year. The name is ‘Bin Yue’.
Xu Liang's heart was full of mixed emotions.
After graduating from college, he worked hard and finally saved enough money to buy his first car, a 'Bin Yue'.
Of course I can't afford a new car that costs nearly 120,000 yuan.
He bought it second hand.
The other party has been driving it for two years and has traveled less than 50,000 kilometers, and only sells it for 50,000 yuan.
He thought he was getting a bargain, but when he started using it, he discovered that it was really a scam.
The fuel consumption is too high, 12 fuel per 100 kilometers, which makes his body hurt when driving.
(End of chapter)