FAW cars major asset restructuring was unconditionally approved by CSRC

category:Finance
 FAW cars major asset restructuring was unconditionally approved by CSRC


According to the disclosed restructuring draft, FAW sedan set 100% of its limited equity value of RMB 5.088 billion and replaced the assets of FAW liberation with the value of RMB 27.009 billion, and the difference will be made up mainly through the form of directional issuance of shares.

Before this transaction, FAW cars main business is research and development, production and sales of passenger cars. After the completion of the transaction, the main business of the listed company will be changed to the R & D, production and sales of commercial vehicles.

As the only automobile enterprise among the six state-owned automobile groups that fails to realize the overall listing of the group, FAW Group owns Hongqi, FAW Jilin and other passenger vehicle brands, while FAW Xiali, another listed company of FAW Group, owns Xiali passenger vehicle brand, and FAW sedan owns Pentium brand, both of which previously had horizontal competition. This means that the main business of FAW sedan will shift from passenger vehicles to commercial vehicles in the future, which will solve the industry competition problems left over by FAW Group for many years. An analyst who has long paid close attention to FAW Group believes that the next important task of FAW Group will be to mix and Reform in order to achieve the improvement of its core competitiveness. At present, the profitable sectors of FAW Group are mainly joint-venture passenger vehicles and independent commercial vehicles. In the future, it is necessary to improve the profitability of the independent passenger vehicle sector, and then realize the overall listing after the improvement of passenger vehicle profitability. Source: First Financial Editor: Zhong Qiming

As the only automobile enterprise among the six state-owned automobile groups that fails to realize the overall listing of the group, FAW Group owns Hongqi, FAW Jilin and other passenger vehicle brands, while FAW Xiali, another listed company of FAW Group, owns Xiali passenger vehicle brand, and FAW sedan owns Pentium brand, both of which previously had horizontal competition. This means that the main business of FAW sedan will shift from passenger vehicles to commercial vehicles in the future, which will solve the industry competition problems left over by FAW Group for many years.

An analyst who has long paid close attention to FAW Group believes that the next important task of FAW Group will be to mix and Reform in order to achieve the improvement of its core competitiveness. At present, the profitable sectors of FAW Group are mainly joint-venture passenger vehicles and independent commercial vehicles. In the future, it is necessary to improve the profitability of the independent passenger vehicle sector, and then realize the overall listing after the improvement of passenger vehicle profitability.