FAW Group's frequent capitalization of its assets "mixed reform" is about to open?

FAW, which is undergoing in-depth reforms, has also been active in the capital market recently.

On June 5th, Fuao Co., Ltd. (6.980, -0.06, -0.85%) (000030, SZ) issued the "Foo Ao shares details of changes in equity report," said the company's shareholder China First Automobile Group Co., Ltd. (hereinafter referred to as FAW The Group intends to transfer approximately 316 million A shares of the company held by the company (accounting for 24.41% of its total share capital) to FAW Equity Investment (Tianjin) Co., Ltd. (hereinafter referred to as FAW Investment).

Coincidentally, Changchun Yidong (600,148, SH) also announced in its “Changchun Yidong detailed equity change report” issued on June 5 that the company’s shareholder, FAW Group, intends to transfer the company held free of charge. A total of approximately 33,327,500 shares (accounting for 23.51% of its total share capital) of A-shares were invested in FAW.

From this point of view, this time of asset transfer, FAW Group handed over all its shares in Fuao and Changchun Yidong, and it was transferred to FAW Investment at no cost. FAW Investment was established on March 28, 2018. Its single shareholder is FAW Group and its main business is investment and investment management.

"The unconditional transfer of assets by FAW Group may be a request from the SASAC." The relevant person in charge of Changchun Dongdong Directorate Office told the reporter of "Daily Economic News" that even if it handed over all shares of Fuao and Changchun Yidong FAW Group is still the actual controlling party of the two listed companies.

FAW Capital operates frequently

In addition to extending assets, listed companies in the FAW Group are conducting a series of intensive capital operations.

On June 5th, in addition to the announcement of changes in equity, Changchun Yidong also issued a “Annual Announcement on the Restructuring of Major Assets Restructured by Changchun Yidong Clutch Co., Ltd.”. The announcement indicated that Changchun Yidong Clutch Co., Ltd. planned to acquire equity assets of Jilin Dahua Machinery Manufacturing Co., Ltd. and Shandong Pengxiang Automobile Co., Ltd., subsidiaries of the controlling shareholder Jilin Dongguang Group Co., Ltd., and it is expected to obtain state-owned assets of the State Council before June 15. Committee pre-audit agreed.

At the same time, on May 31, Dongfeng Motor (4.420, 0.04, 0.91%) Parts & Components (Group) Co., Ltd. and Foosi Co., Ltd. signed a joint venture contract for oil pump business in Wuhan. The two parties will co-fund the establishment of Dongfeng Fu'ao Pumps. Limited company.

The same Kaiqi Information (8.960, 0.07, 0.79%) (002232, SZ) of the FAW Group, announced on May 24 the announcement of the progress of Qiming Information Technology Co., Ltd. on planning major issues, said that the company is planning For major events, this event may involve major asset restructuring. The target company belongs to the automotive electronics industry.

In addition, FAW Xiali (4.190, -0.11, -2.56%) (000927, SZ), which has received much attention in the FAW reform process, has recently been reported frequently or will be reorganized in the near future. In September last year, FAW Xiali was included in the management of the Pentium Division in the institutional reforms initiated by FAW Group. This industry generally believes that this is the beginning of the "mixed change" operation of FAW Xiali.

As to whether FAW Xiali is in contact with new partners in the reorganization of assets and whether there will be new actions in the future, Wang Zhiping, general manager of Tianjin FAW Automobile Sales Co., Ltd. once told the reporter of “Daily Economic News”: “Everything is possible. "It is worth noting that since the reorganization of FAW Xiali at the end of May, the stock price of FAW Xiali continued to rise, accumulating more than 8%, and the stock price closed at 4.30 yuan as of June 5.

The "mixed reform" curtain is about to open?

“One-time allocation of the equity of the two listed companies to a professionally-invested second-tier company. This arrangement should be to prepare for 'mixed reform'.” Cao He, President, All-China Vehicle Investment Management (Beijing) Co., Ltd. Told reporters.

Since Xu Liuping went straight to the chairman of the No. 1 Automobile Group, he opened the reform curtain of FAW Group with lightning speed. In September last year, FAW Group began to make major adjustments to its organizational structure and personnel. The Pentium Business Division was established to include all FAW Group's autonomous passenger vehicle business including FAW Xiali, FAW Car (8.840, -0.06, -0.67%), FAW Jilin, etc.; intensive personnel adjustment, full competition to stimulate staff vitality Completely divest the red flag assets; and signed strategic cooperation agreements with Dongfeng and Chang'an two central SOEs.

In order to further promote the reform, on May 16th this year, FAW Group issued a "Notice on Adjusting the Organizational Settings of Certain Group Organizations and Related Responsibilities to Further Define the Relevance of Related Functions," and established the Mobile Travel Division and the Hongqi Small Town Management Department. The four major departments have established an early product strategy committee to take charge of the mid-to-long-term planning of the Hongqi brand. In addition, the company also sorts out various departments such as R&D, product planning, capital operation, strategic management, corporate auditing, and legal affairs. Further clarify the relevant ownership.

With FAW reform gradually entering the deep-water zone, the outside world is curious, when will FAW "mixed reform" the curtain will be opened. "From the perspective of FAW Group itself, since the overall listing cannot be achieved at present, it is only necessary to start with its subsidiary companies to revitalize resources. Only after the preparatory work is done well can we introduce external shareholders to carry out 'mixed reform'. This time is almost 3 Months to six months." Cao He thinks.

Earlier, Xu Liuping, chairman of FAW Group, said in an interview with the reporter of the "Daily Economic News" that only reform can release the energy resources owned by China FAW. “In the near future, we will regard FAW's overall reform as a very important task for the next step in its development. The overall level of FAW should move toward a mixed ownership system and fully market-oriented corporate governance. This is an important FAW reform. Sign, or an important indicator."