Recently, Lucent Precision held a performance presentation meeting, at which it mentioned the investment in Chery. "The investment in Chery is led by the holding company of Lucent Precision, which is a pure investment behavior of individual shareholders. At present, there is no plan to inject it into listed companies."
In other words, Chery and Lucent Precision have no direct relationship, but have the same shareholder. Moreover, the holding party, Lixun Co., Ltd., has no plan to sell its shares of Chery Automobile to Lixun Precision for the time being.
At least at this stage, Chery and Lixun Precision are just "brothers". Both parties have cooperation but no equity transaction relationship. However, Lucent Precision is continuing to explore other fields, focusing on automobile, communication, medical and other related industries in the near future. Moreover, because of the relationship of Lucent Limited, the cooperation between Chery and Lucent is expected to deepen in the future.
Both parties are now on the same boat
At the beginning of 2022, the news of "Lixun Precision Investing in Chery" became very popular. But in fact, this investment is led by the controlling shareholder of Lucent Precision, Lucent Co., Ltd.
Tianyancha App shows that Lucent Co., Ltd. is the controlling shareholder of Lucent Precision, holding 38.05% of its equity. In February 2022, Lixun Co., Ltd. took over 19.88% equity of Chery Holding, 7.87% equity of Chery Shares and 6.24% equity of Chery New Energy held by Qingdao Wudaokou with RMB 10.054 billion. After the completion of the transaction, Lixun Co., Ltd. became the third largest shareholder of Chery Holdings and the fourth largest shareholder of Chery Shares.
On the surface, this transaction has nothing to do with Lucent Precision. However, in the view of insiders, this is the road for Lucent Co., Ltd. to vigorously develop its auto business.
At the same time, Lixun Precision signed a strategic cooperation agreement with Chery and proposed to jointly establish a joint venture with Chery New Energy. Both parties plan to give full play to and make use of their own resources and advantages in supporting R&D and OEM business for brand customers in the field of new energy vehicles (including but not limited to commercial, passenger, logistics and all new energy vehicles within the system of Party B's group company), and jointly cultivate R&D and production teams and develop cooperation business.
It is reported that the products created by the joint venture will not only be supplied to Chery, but also to other car enterprises. This is in line with the medium - and long-term goal plan of Lucent Precision, "becoming a leading manufacturer of Tier1 auto parts".
Lixun Precision, the "Fruit Chain First Brother", wants to ride the Dongfeng New Energy Vehicles, and Chery is the partner sought by its controlling shareholder.
Chery's mixed transformation and listing dream
From Lixun Precision, it denied that Chery would inject, which also meant that Chery would not rely on others to achieve its dream of listing.
Anyone who knows Chery's development history should know that Chery has always had the dream of going public as a whole or its auto business, and has worked hard for it for 20 years.
However, due to long-term borrowing and financing, Chery's debt ratio exceeded the warning line of 60% of the industry. Data display. From 2015 to 2019, the asset liability ratio of Chery Holdings and Chery Shares hovered around 75%; Profits have also been in a loss state for a long time. Due to the poor financial situation, Chery Holdings and Chery Shares' dream of listing has not been realized.
Chery will open the road of mixed reform again after 2019, introducing foreign aid to help itself, but also to shock the listing. Qingdao Wudaokou New Energy Automobile Industry Fund was delisted, holding 51% shares of Chery Holding and 35.58% shares of Chery with a total trading volume of 19.601 billion yuan, becoming the largest shareholder of the two companies. Subsequently, relevant senior executives from Qingdao Wudaokou settled in Chery Department, among which Zhou Jianmin served as the vice chairman of Chery Holding and the vice chairman of Chery Automobile.
In 2020, Yin Tongyue, Chairman of Chery, also said that "after the completion of capital increase and share expansion, Chery will speed up its listing on the important agenda." Zhou Jianmin also said that he would promote Chery's listing process.
However, due to capital problems, Qingdao Wudaokou pledged shares of Chery Holding and Chery Automobile for many times, and eventually withdrew from Chery family. As a result, Chery's dream of going public was dashed again.
In 2022, Lixun Co., Ltd. joined the Chery shareholders array. It took over the equity of Chery from Qingdao Wudaokou with 10 billion yuan. However, according to the agreement of both parties, after the completion of this transaction, Lixun Co., Ltd. will not control Chery Holdings, Chery Shares and Chery New Energy. However, Wang Chunlai, chairman of Lucent Precision, is now a director of Chery Holding.
At the end of last year, Chery seemed to restart its IPO plan. According to Bloomberg, Chery Holdings has restarted its plan to list its subsidiary Chery shares, and will submit its initial IPO application as soon as 2024, with a valuation of up to 150 billion yuan. Chery Automobile responded, "The company is actively preparing for listing, and other information is inaccurate."
From the perspective of sales volume and revenue, Chery Automobile should have the ability to go public. Since 2021, the sales volume of Chery Group has been booming. By 2023, the sales volume of Chery Group will reach 1.88 million, and the revenue will exceed 300 billion yuan. In particular, in terms of exports, overseas sales accounted for about 50% of the group's total sales, and ranked among the top export sales of Chinese brands.
It is reported that the internal senior management of Chery has revealed that the group's profit has exceeded 10 billion yuan, especially the huge profits created by exports.
If Chery shares can achieve continuous profits in the last three years, then the domestic IPO is just around the corner. (Gestapo Xiangtiange)
