After the announcement of the acquisition, Zhengtong automobile and Zhengtong bonds announced a temporary suspension at 9 am this morning. At present, Zhengtong motor shares closed at HK $1.08 per share, and in the first two months, its share price fluctuated below HK $1. At present, its total market value is only HK $2.913 billion, which is 80% lower than the peak value in 2017.
It is understood that Xiamen Xindas shareholding has long been a precursor. In August this year, a rights protection owner of Zhengtong disclosed to time finance and economics that, according to insiders, enterprises with Xiamens state-owned assets background will inject funds to help them out. Although many car owners have picked up the car, the capital problem of Zhengtong automobile has not been solved. According to times finance and economics, although they are slowly picking up their cars, they are still in the queue. Some owners say that this situation may last for a long time.
On October 20, time finance called Xiamen Xindas office of directors and secretaries about the acquisition and other issues. The relevant staff told time finance that the transaction between the two sides is currently in progress, and the relevant information can refer to the contents disclosed in the announcement.
In addition, Volvo and Audi have recently been exposed to cancel the distribution rights of some of Zhengtongs 4S stores, which is undoubtedly another bad news for Zhengtong automobile, which is mainly engaged in luxury car business.
Xiamen Xinda may become the largest single shareholder
According to the announcement of both parties, joy capital, the controlling shareholder of the company, holds 1383516820 shares of the company, accounting for about 51.29% of the total shares of the company. Yesterday, Wang MuQing, chairman of the board of directors, signed a sale and purchase agreement with Xiamen Xinda.
As the buyer, Xiamen Xinda plans to purchase 29.9% shares of Zhengtong motor with voting rights by cash payment. The total number of voting shares issued by Zhengtong motor is 806535284 shares. The transfer price per share is HK $1.74 per share. Subject to the agreed price adjustment mechanism, the total transfer consideration is tentatively set at HK $1403371394.
The picture is from the official website of the public
According to Tianyan survey, Xiamen Xinda has a local state-owned assets background. Its largest shareholder is Xiamen International Trade Holding Group Co., Ltd., with a shareholding ratio of 29.18%. The company is 100% owned by Xiamen SASAC.
On October 20, for the transaction between the two sides, Cui Dongshu, Secretary General of the national ride Association, told time finance that Xiamen Xinda had a state-owned capital background. For Zhengtong automobile, it was very helpful to solve its capital problem. In addition, Zhengtong automobile mainly engaged in luxury car business, and car sales developed well. At this time, Xiamen Xinda was picking up a bargain.
It is understood that Xiamen Xinda is also involved in the automobile distribution industry. The company was once selected as one of the top 100 auto dealers in China. However, as a subsidiary of Xiamen International Trade holding group, its main core business is focusing on optoelectronic and Internet of things industries.
Xiamen Xinda also said in the announcement that after the completion of the transaction, the buyer will become the largest single shareholder of Zhengtong automobile, and all parties will jointly seek to gradually improve and solve the liquidity problem of Zhengtong automobile.
However, there are still uncertainties in the transaction between the two. In Xiamen Xindas announcement, it disclosed nine delivery preconditions, including Zhengtong motors issuance of the audited consolidated statement of 2020 and the contents of the statement are satisfactory to both parties; there is no significant adverse effect change in the operating status of Zhengtong automobile, etc. With the advent of the disclosure period of the third quarter report, as well as the related problems such as vehicle collection have not been completely solved, it may become a variable of bilateral transactions.
In recent years, the development of Zhengtong automobile has been declining. According to the data, in 2018, the net profit of Zhengtong automobile reached 1.224 billion yuan, with a sharp decline of 45.77% to 664 million yuan in 2019; its operating income decreased by 6.19% to 35.138 billion yuan from 37.456 billion yuan, and its revenue and profit declined. However, Zhengtong automobile still occupies the tenth place in the list of major dealers all year round.
In the first six months of this year, Zhengtong automobile sold 21572 new cars, a year-on-year decrease of 58.6%. Among them, the sales volume of luxury and super luxury brands was 17570, with a year-on-year decrease of 57.0%; the gross profit rate of new car sales was 4.1%, which was 0.6 percentage points lower than that of the same period of last year.
In the first half of the year, the total liabilities of Zhengtong automobile rose to 29 billion yuan, and the asset liability ratio exceeded the red line of the industry, reaching 70.19%; its current ratio and quick ratio also increased correspondingly compared with the end of last year, reaching 1.03 and 0.87 respectively.
At present, Zhengtong Automobile Co., Ltd. is in the situation of high debt and fund situation, but more urgent is that its main business encounters major turbulence again.
The picture is from the official website of automobile enterprises
Recently, Volvo officially announced that due to the irreparable situation in the operation process of a very small number of dealers, it is impossible to carry out normal operation. Therefore, Volvo car sales (Shanghai) Co., Ltd. and Volvo car (Asia Pacific) Investment Holding Co., Ltd. terminated their cooperation with relevant dealers.
Time finance learned that the above dealers include 16 dealer enterprises, such as Guangdong Zhongqi Nanfang shengwo Automobile Sales Service Co., Ltd., Dongguan Zhongqi Nanfang Automobile Sales Service Co., Ltd., and Beijing Zhongguan Automobile Sales Co., Ltd., and the above dealers are the 4S stores of Zhengtong automobiles brands all over the country.
In addition, according to media reports, Audi has also cancelled the authorization of five 4S stores of brands cooperating with Zhengtong automobile. In fact, in September this year, a Shenzhen rights owner told time finance that among their nationwide user base, some car owners mentioned that Audi would cancel part of the distribution rights of Zhengtong automobile.
After the cancellation of the distribution rights of the luxury car brands mentioned above, the number of stores currently operated by Zhengtong automobile can not be determined for the time being. However, according to its annual report data, as of the first half of the year, Zhengtong automobile has 105 luxury and super luxury brand 5S / 4S stores, 13 middle and high-end brand 4S stores, including 136 stores of other brands. The distribution rights of some luxury brands have been cancelled, which has a negative impact on its business. As a well-known luxury car dealer group in China, Zhengtong automobiles development dilemma is a typical case of automobile distribution industry since this year. Now, new investors are welcome. Whether Zhengtong automobile can solve the financial difficulties and turn crisis into opportunity in the recovery wave of automobile industry deserves attention. Source: editor of time finance and Economics: Pan Zhuolun source: editor in charge of time finance and Economics: Zhong Qiming_ NF5619
As a well-known luxury car dealer group in China, Zhengtong automobiles development dilemma is a typical case of automobile distribution industry since this year. Now, new investors are welcome. Whether Zhengtong automobile can solve the financial difficulties and turn crisis into opportunity in the recovery wave of automobile industry deserves attention.