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Chongqing Xiaokang Industrial Group Co., Ltd. (hereinafter referred to as Xiaokang Industry), which has been on the market for many years, has also received a timely rain. Recently, the China Securities Regulatory Commission announced the IPO pre-disclosure list, and Xiaokang Industry intends to list on the Shanghai Stock Exchange. According to the pre-disclosure document published by Xiaokang Industry, the funds raised by the listing will be used for investment in auto parts projects.
In recent years, Xiaokang Industry has become one of the top three in the field of micro-cars. However, the battle for the micro-car field is becoming increasingly fierce. To stabilize the position of the top three, the well-off industry must obtain greater assistance at the level of funds.
Huge investment In many years ago, Xiaokang Industry formulated an ambitious listing fundraising plan. However, the sluggishness of China’s capital market once made this plan seem to be in the foreseeable future.
In 2012, Xiaokang Industry submitted to the China Securities Regulatory Commission the listed EIA materials, indicating that it is planned to issue no more than 150 million shares on the Shanghai Stock Exchange, and the proposed funds will not exceed 1.537 billion yuan. The funds will be invested in auto parts, engine parts and auto transmissions. . However, due to the suspension of the IPO review and issuance by the China Securities Regulatory Commission, the listing plans of many companies have been delayed. It was not until two years later that Xiaokang Industry appeared in the IPO pre-disclosure document.
The pre-disclosure document of Xiaokang Industry shows that among the three auto parts projects with a total investment of 1.769 billion yuan, the funds raised will be 1.34 billion yuan. The company also suggested that if the funds raised cannot meet the funding needs of the proposed investment project, the short part is planned to be self-financed by means of bank loans: if the actual amount of funds raised is greater than the amount of funds to be raised in the above projects, it will be used to supplement The company's main business needs funds. This means that the well-off industry at least plans to raise more than 1.34 billion yuan.
Senior executives of Xiaokang Industry also said that after the listed funds are invested in auto parts projects, they will promote the self-production and supply of high-value parts and components, and promote the transformation and upgrading of vehicle products.
In the view of Xiaokang Industry, the current parts suppliers, due to their financial strength, limit their investment in machinery and equipment, so that they have insufficient processing in parts and components, and can not meet the future precision of parts processing for vehicle customers. Claim. Most of the existing parts suppliers use manual to control the consistency of product quality and quantity. There are many human factors, which affect the quality of the products and cause batch differences. People in the well-off industry said that if there is a problem with the heavy parts, it will have a great impact on the reputation and reputation of the OEM.
In fact, in the accessory system, the influence of human factors on the whole vehicle is extremely important. The reporter learned from the contact with some supporting companies that some car companies in the micro-car industry even have “eat and take cards†in the procurement control of parts and components. "The problem. In this atmosphere, some suppliers have adopted bribery and other means to integrate into the supporting system, and some products with poor quality have also entered the car enterprises, which has brought a deep impact on the safety of the whole vehicle. Auto analysts believe that controlling the production of key and important parts is also the core competitiveness of vehicle companies. For example, Ford, GM and other multinational vehicles are controlling the core components such as engines and transmissions.
People close to the well-off industry also said that Xiaokang Industry has further consideration of cost considerations in addition to ensuring the quality of its parts by improving its self-supply capacity. Data show that from 2011 to 2013, the operating income of Xiaokang Industry was 9.730 billion yuan, 7.901 billion yuan and 8.323 billion yuan respectively, and the net profit for the same period was 585 million yuan, 372 million yuan and 424 million yuan respectively. Obviously, the profit growth of the well-off industry has been resisted. After the implementation of key component projects, it may be possible to provide an opportunity for the profit of the well-off industry. Of course, Xiaokang Industry also confessed that the short-term related projects will not affect the company's return on net assets, and the company's return on net assets will rise steadily.
Increased competition There is still a long process from pre-disclosure to formal listing. Due to the fierce competition in the auto industry, before the listing of funds raised, Xiaokang Industry will use its own funds and bank loans to promote the construction of related parts and components.
For the well-off industry that wants to defend the top three in the industry, this is a must-have “gambleâ€. The relevant person in charge of Xiaokang Industry said that as a micro-car manufacturer, it is necessary to strengthen the control of key components to be able to withstand the supporting risks, and then realize the transformation and upgrading of the company's vehicle products and defend the status of the industry. It is understood that Xiaokang Industry and Dongfeng Motor jointly established Dongfeng Xiaokang, implemented the micro-car complete vehicle business through Dongfeng Xiaokang, and established two major production bases in Hubei and Chongqing.
Data show that in 2013, SAIC-GM-Wuling micro-cars sold 1.499 million vehicles, with a market share of 52.62%; Changan Automobile was 514,000, with a market share of 18.04%; Dongfeng Xiaokang was 281,200, with a market share of 9.87%; Beiqi Weiwang is 130,200 units with a market share of 4.57%. These four companies have a market share of more than 85% in the entire micro-car industry. It can be said that the micro-cars have formed a semi-strong pattern.
However, there is still fierce competition in the top four of the micro-cars. In Chongqing, the capital of the micro-car, the infighting of the top four of the micro-cars is very obvious.
A few years ago, after Changan Automobile focused on the car segment, the share of micro-cars continued to decline, and the gap with SAIC-GM-Wuling was growing. The data shows that the market share of Changan Automobile in 2011 was 23.18%, which was only 22% lower than that of SAIC-GM-Wuling. However, by 2013, the gap between Changan Automobile and SAIC-GM-Wuling reached 34%.
At present, SAIC-GM-Wuling is still implementing a strategy to further increase its market share. At the end of 2012, SAIC-GM-Wuling officially dispatched troops to Chongqing to build a production base in Liangjiang New District, Chongqing. The base project is constructed in two phases with a total capacity of 800,000 units. The reporter learned from the person in charge of the SAIC-GM-Wuling Chongqing factory that if there is no accident, the base will be officially put into operation in November this year, and it is expected that the production and sales scale will be 200,000 in 2015. Faced with the aggressiveness of SAIC-GM-Wuling, Changan Automobile is also implementing the construction of a follow-up project for the fish mouth base in Liangjiang New Area, thereby strengthening competition with SAIC-GM-Wuling.
As the third Dongfeng Xiaokang in the industry, facing the strangling of SAIC-GM-Wuling and Changan Automobile, the rising brand of Beiqi's micro-car brand is also very big. In 2010, the first model of Beiqi Weiwang was launched in Zhuzhou, Hunan. This is an important milestone for BAIC to enter the micro-car industry. Beiqi Group has set up a micro-car production base in Zhuzhou and other places in Hunan. In 2010, BAIC also established Beiqi Yinxiang Automobile Co., Ltd. with Chongqing Yinxiang Group. The company is headquartered in Chongqing, with a production capacity of 300,000 units in Chongqing. It mainly produces Weiwang brand micro-cars. After intervening in the micro-car field, the market share of the Weiwang brand under the BAIC Group continued to increase. In 2012, Beiqi Weiwang sold only 46,300 units with a market share of 1.7%. In just one year, the market share has increased by nearly three percentage points, gradually narrowing the gap with Dongfeng Xiaokang.
In recent years, under the impact of strong competitors, the market share of micro-cars has dropped from 12.51% in 2011 to 9.87% in 2013, and sales have dropped from 335,500 in 2011 to 281,200 in 2013.
It is in this grim situation that Xiaokang Industry has actively sought to make breakthroughs in the capital market, so as to prepare "ammunition" for further competition in the future. According to relevant persons from Xiaokang Industry, Xiaokang Industry will promote the upgrading of vehicle products through the creation of parts and components system. The vehicle business will continue to narrow the gap with industry leaders on the basis of stabilizing the existing market share.
However, will the micro-car industry continue to decline if the listing can be smoothly completed? Under various uncertainties, the well-off industry still faces a serious test.
·The competition in the micro-car industry is intensifying. Xiaokang Industry intends to list on the Shanghai Stock Exchange.