In 2018, Foton Motor issued the proposal on launching the three year action plan business restructuring project, proposing a package of actions to speed up the reform and adjustment of non main and loss making businesses and improve the asset utilization efficiency and profitability. According to the previous plan, from 2018 to 2020, Foton will achieve the leading position in the field of heavy truck, light truck and passenger vehicle through series integration.
This year is the last year of the three-year action plan. Since the beginning of the year, Foton Motor has sold 51% of the equity of its wholly-owned subsidiary Hebei Leisa Heavy Construction Machinery Co., Ltd. (hereinafter referred to as Hebei Leisa), transferred part of the assets of Huairou heavy machinery plant, as well as the assets and liabilities involved in the stamping business of its stamping plant. The above equity and asset sales will be to Foton Tian auto brings in nearly 580 million yuan.
Although the sales volume of commercial vehicles of Foton has been in the top 5 in China, its market profit performance is not good. In 2019, the companys operating revenue was 46.966 billion yuan, an increase of 14.4% year-on-year. It benefited from the divestiture of Beijing baowo Automobile Co., Ltd. (hereinafter referred to as baowo automobile), which suffered losses in the whole year. The net profit reached 192 million yuan, but the net profit loss after deducting Africa still reached 1.614 billion yuan, which is the sixth year of the companys net profit after deducting Africa since 2014.
In the first quarter of this year, affected by the epidemic, the net loss of Foton reached 296 million yuan, a year-on-year decrease of 468.78%. It is worth noting that the companys net cash flow from operating activities was - 1.109 billion yuan, down 157.65% year on year. As of the end of the period, the companys total assets were 54.536 billion yuan, and its total liabilities reached 37.957 billion yuan.
This hot potato is finally solved by the entry of strategic investor Shenzhou Youche. In the end, Shenzhou Youche (Xiamen) Information Technology Co., Ltd., a subsidiary of Shenzhou Youche, obtained 75.2605% of the equity of baowo automobile, while the shareholding of Foton automobile in baowo automobile also dropped to 24.7935%.
Originally, it was hoped to solve the capital pressure through equity transfer, but the sudden thunder of Ruixing coffee also caused problems in the follow-up payment of Shenzhou Youches acquisition of baowo automobile: first, in the previous acquisition, Changsheng Xingye, the direct receiver, still owed Futian Automobile 1.481 billion yuan for equity transfer, which needs to be paid off before the end of this year; second, Futian Automobile borrowed 4.67 billion yuan from shareholders of baowo automobile It cant be recovered for the time being. After negotiation, the three parties agreed to adopt the method of debt repayment, but the remaining loan principal and interest of about 900 million yuan, as well as the rent to be paid by baowo automobile in the later period, Shenzhou Youche provided joint and several liability guarantee.
Foton has previously issued two consecutive announcements, and completed the delivery of the second batch of assets in the assets of Bovo. However, Foton also said in the announcement that there are several risks in the assets of Bovo: first, without the consent of Foton, Bovo and its suppliers dispose of the deposited assets without authorization, or do not properly keep the deposited assets, which may lead to the deposit assets being other assets The third party acquires or suffers damage or loss in good faith; secondly, baowo automobile may not be able to pay the rent on schedule in the future due to the deterioration of its financial situation and other reasons, and the corresponding leased assets will have the risk of impairment.
In addition, according to the financial report, as of 2019, Foton has about 810 million yuan of guarantee for Bovo. Once Bovo falls into crisis, it will also have an impact on Foton.
Fukudas concerns are not without reason. The accident of Ruixing coffee counterfeiting caused great losses to Shenzhou department. Because of the repayment of share pledge loan, Shenzhou Youche passively reduced its share of car rental in Shenzhou. On May 31, Shenzhou car rental issued a notice saying that BAIC group and BAIC group had entered into a non legally binding strategic cooperation agreement. BAIC group would purchase no more than 450 million shares from Shenzhou Youche, equivalent to 21.26% of the total issued share capital of Shenzhou car rental, which is exactly all the remaining shares of Shenzhou car rental in the hands of Shenzhou Youche. The move also means that car rental will be completely withdrawn from Shenzhou, and BAIC group may enter the ranks of major shareholders of car rental in Shenzhou. Shenzhou car rental is the most high-quality resource of Shenzhou Youche. If BAIC group takes over the whole resources of Shenzhou car rental, how many assets can Shenzhou Youche have in the future to support the amount owed by baowo automobile to Foton automobile? Source: Chen Hequn, editor in charge of the first financial network_ NB12679
Shenzhou car rental is the most high-quality resource of Shenzhou Youche. If BAIC group takes over the whole resources of Shenzhou car rental, how many assets can Shenzhou Youche have in the future to support the amount owed by baowo automobile to Foton automobile?