Some analysts pointed out that Chery's reform was not a simple equity transfer, but a long-term state-owned enterprise reform. In the view of Chery executives, 2018 is the first year of automobile industry reform. As a typical capital and technology intensive industry, the layout of automobile industry often requires a lot of capital and resources. Information picture
Some people say that China's reform and opening up is an incredible miracle. Even economists who accurately predicted that China would move towards a market economy more than 30 years ago did not expect that Chinese enterprises would grow so fast.
More and more Chinese enterprises are moving towards the global market and seizing the highland of industrial transformation. Today, it is well known that the valuation of Tesla, Weilai and other enterprises has successively exceeded that of traditional automobile enterprises. This makes people wonder what the traditional automobile enterprises need to do to guide a new round of automobile science and technology reform and even the automobile industry revolution?
There is no doubt that the Pre announcement of Chery Holding Group Co., Ltd. on Capital Increase and Share Expansion, which was pre disclosed on September 17, is the most appropriate place to find the answer.
According to the announcement, Chery Holdings and Chery Shares plan to introduce investors by means of capital increase and share expansion at the same time. The investors will contribute cash to subscribe for the newly increased registered capital of Chery Holdings of 1962151751 yuan and 1012931633 new shares of Chery Shares.
After the completion of this capital increase and share expansion, the registered capital of the increased enterprise is 6240558251 yuan. Among them, Wuhu Construction Investment held 27.4975% shares, Ruichuang Investment held 25.3823% shares, Huatai Asset Management held 15.6782% shares, and new investors held 31.4419% shares. (The tail difference in the total equity ratio is caused by rounding - reporter's note) According to the reporter, this capital increase and share expansion will not have an impact on the daily business activities of Chery. The new capital is only the largest shareholder, and Wuhu capital will still dominate.
It is worth noting that this announcement has always used "capital increase and share expansion" rather than the previously widely rumored "equity sale", explicitly denied the rumor of "selling oneself", and frankly stated the goal of "raising funds to repay the liabilities to Chery shares and the development and daily operation of Chery Holding's existing and new businesses".
Some analysts pointed out that Chery's reform was not a simple equity transfer, but a long-term state-owned enterprise reform. According to Jin Yibo, spokesman of Chery, 2018 is the first year of the transformation of the automobile industry. As a typical capital and technology intensive industry, the layout of the automobile industry needs a lot of capital and resources.
In addition, the reporter learned from the internal senior management of Chery that this capital increase and share expansion is a key link in Chery's enterprise reform. As planned, Chery will achieve spin off and listing in the future, and will layout in many fields, including new energy, artificial intelligence, mobile travel services, core components, etc. "Let one Chery become four or five Cheries".
In a wave of industrial change driven by new energy, artificial intelligence technology and emerging business models, many multinational car companies with deep pockets have set goals to promote enterprise transformation through the layout of new businesses. In contrast, Chinese self owned brand car enterprises are eager to try in mentality and ready to launch in spirit, but they are still not ready for the short development time in terms of material conditions and system construction.
In order to meet the coming new round of industrial revolution, auto enterprises accustomed to "immersing themselves in making cars" not only need to break the shackles of old thinking, but also need to build an enterprise system and market layout that adapt to the new trend as soon as possible to find new sources of power.
Therefore, in order to better understand Chery's way of increasing capital and shares, we must first understand several new businesses developed by Chery in the process of enterprise transformation. Without seeing this, any description of Chery's reform is incomplete.
It is reported that Chery Automobile, which has a strong engineer culture and believes that "no more province can save research and development", has invested at least 4 billion yuan in research and development every year. From the wireless charging and automatic driving technologies of the forward-looking technology R&D center to the first V2X Internet of Vehicles demonstration road in Anhui Province... Chery's technical capabilities accumulated over the years have been recognized by most people. It is understood that in 2017, Chery ranked seventh in the number of patents in China, and one after another comparable to the international "black technology" of automobiles has become Chery's potential to be released urgently.
It is understood that Chery has established a new energy vehicle research team as early as 1999, and has carried out a large number of layout in the field of new energy vehicle core parts. At the same time, Chery's cooperation with Baidu, iFLYTEK and other technology companies in the research and development of intelligent connected vehicles has reached a very high level.
In recent two years, nothing in the investment circle is more popular than "new energy", "artificial intelligence" and "mobile travel services". Traditional automobile enterprises are looking for partners with wide eyes, and they are scrambling to announce "to be smart cars and transform into service-oriented enterprises"; The capital market never fell asleep. Baoneng and Evergrande waved checks to buy tickets.
As the saying goes, "When the troops are not moved, food and grass go first". In every battle, the general will send the most elite and well-equipped troops to take the lead. Similarly, an enterprise will naturally invest its superior resources in emerging businesses.
For Chery, which has built a V-shaped positive R&D system, only by "preparing enough ammunition" can we freely improve the new layout. It is understood that the resources raised by this capital increase and share expansion will mainly be invested in new energy, artificial intelligence and internationalization. At the same time, Chery's reform process will also continue to accelerate and intensify efforts.
It is worth noting that Chery's capital and share increase this time is not simply "the higher the price, the better", but to comprehensively consider the strength of the enterprise, protect the interests of Chery's existing partners and employees, and select the partner with the richest resources and strongest strength. A Chery executive told the reporter that the new shareholders should be able to provide different incentive mechanisms, new technologies, new perspectives and other key elements for Chery's reform. He believes that after this round of capital increase and share expansion, Chery will be closer to its dream of "becoming an independent leading and international brand".
Statistics show that from January to June this year, Chery Group sold 343000 cars, up 8.8% year on year, and achieved a counter trend growth. Among them, the global sales volume in August reached 61845, up 10.7% month on month and 32.7% year on year.
On September 17, Chery officially launched a letter from Chairman Yin Tongyue to all Chery people, which emphasized the legendary role of Anhui born by Chery in the process of China's reform and opening up. In fact, Chery's enterprise development history also reflects the legend of reform and opening up. Therefore, Yin Tongyue put forward the goal of "hoping Chery can become the 'Xiaogang Village' of China's automobile industry". This inspiring goal was first proposed by Yin Tongyue at the Beijing International Auto Show in April this year. Nearly half a year later, Chery Holding Group and Chery Shares were pre listed in Anhui Changjiang Property Rights Trading Center on the project of capital increase and share expansion, and Chery began to establish a more effective modern corporate governance structure.
From driving local economic development by virtue of the spirit of "grass house" to taking the lead in going abroad to participate in global competition... For Chery, which once grew savagely and stimulated the confidence and desire of its own brand with its own efforts, each step is closing the gap between China and the global auto market, whether it is a heroic step to the peak or a road to revitalization from the bottom to the top. Therefore, this announcement of capital increase and share expansion is regarded as the watershed of Chery's development and may also be the prelude to the reform of China's automobile enterprises.
At the end of this open letter, Yin Tongyue pointed out: "All the past is the prologue." After this round of capital and stock increase, the legend is expected to turn a new chapter.
