The bus shares announced the "Report on Major Asset Sale and Issuance of Asset Purchase Related Assets and Related Party Transactions". So far, the bus reorganization plan of concern has settled.
Affected by many market factors, in recent years, the profits of the public transport bus and taxi business of the Bus Group's main business have continuously declined, and the space for development has been greatly limited. Since 2005, earnings per share after deducting non-recurring gains and losses were 0.12 yuan, 0.10 yuan, and 0.06 yuan respectively, showing a year-on-year downward trend. In order to realize the sustainable development of the company and create higher value for the shareholders, the bus shares have been carefully thought out and decided to retreat from public welfare buses and other businesses through asset restructuring and implement an overall transformation of the main business. After the reorganization is completed, the bus shares will usher in a magnificent turn and become the largest listed auto parts company in China's A-share market. With the support of the world's top 500 companies, SAIC, the restructured listed companies will fully advance into the ranks of world-class auto parts giants in accordance with the development strategy of “neutralization, zero-levelization, and internationalizationâ€.
New Perspective: Decryption and Reorganization of the "5+3" Advantage
Why will the bus shares transform into auto parts industry? It is understood that this transformation has benefited from the five major external environmental advantages and three internal core advantages that bus stocks have entered into the auto parts industry, namely the “5+3†advantage.
Five external environmental advantages
From the external environment of the auto parts industry, there are many market opportunities.
First, the independent development of the “neutralization†of the auto parts industry has taken on an international trend. In recent years, major auto companies in the world have adopted global production and global sourcing. They have changed from purchasing from multiple auto parts manufacturers to purchasing from a few system suppliers, from single auto parts procurement to module procurement, and from implementing domestic procurement changes. Purchasing for the world. To this end, auto parts manufacturers gradually develop a neutral trend.
Second, it has policy opportunities. According to the national auto parts industrial policy, in order to support the development of China's auto parts industry, China strives to form a group of parts and components industry clusters with certain competitive advantages in 10 years or so, and develop 2 to 3 more in five years. Component industrial cluster with strong international competitive advantages.
Thirdly, the continued growth of the entire vehicle market in China will promote the rapid development of the auto parts supporting business. In 2007, China's auto production and sales have reached 88.2 million units and 8,792,200 vehicles respectively. In the next few years, the Chinese auto market will still maintain a double-digit growth rate, which is bound to drive the rapid development of China's auto parts industry.
Fourthly, the rapid increase in domestic car ownership makes the after-sales parts business more dynamic. At present, the number of domestic cars is rapidly rising. In 2007, the number of private cars in China was about 35.34 million. By 2010, the number of private cars in China is expected to reach 65 million, and the aftermarket parts market has a vast space for development.
Fifth, benefiting from globalized procurement, export growth is strong. The cost advantage of auto parts in China has prompted auto manufacturers to increase the procurement of domestic components. In 2007, the export value of China's auto parts has reached 15.6 billion US dollars, an increase of 35.4% year-on-year. It is estimated that by 2010, the scale of auto parts exports will reach 30 billion yuan. Around the dollar.
If the above five points are the advantages of the external market environment that bus companies have in entering the auto parts industry, what are their internal advantages as a restructured bus company?
According to relevant sources, after the completion of the reorganization, the bus shares will have a mature independent supply of auto parts business under SAIC Motor Corporation, covering three major business segments, interior and exterior trim, functional assembly and thermal processing, both in terms of asset size and profitability. Both the degree of marketization and the development prospects are superior to the original assets. Among them, Yanfeng Visteon, Xiaozhan headlights, Shanghai Natiefu, Sandian Bellow, Valeo Electric and other companies have long maintained the market in their respective interior and exterior trims, lights, transmission shafts, air-conditioning compressors, and generators. Sales first.
Three internal core advantages
SAIC's independent supply of auto parts business has obvious advantages:
First, it has established a complete independent supply auto parts industrial chain. The independent suppliers of auto parts business are mostly first-class component suppliers and occupy the high end of the industrial chain. Currently, the products have entered or are about to enter the global procurement of GM, Ford, and Volkswagen, etc. System, with strong modularity and systematic support capabilities, strong bargaining power.
Second, it has domestic leading component R&D capabilities. SAIC Group's independent supply of auto parts and components companies has all established its own technology center or technology development department. Through the absorption and re-innovation of imported technologies, it has continuously improved the level of independent research and development on the basis of making full use of existing resources and mastering advanced international technologies. The company has formed an overall development capability covering design, verification, process development, mold development and manufacturing, and has integrated into the global synchronous development system in some areas, and has the capability of simultaneous development with the entire vehicle company.
The third is to have a successful joint venture model and cooperation experience. The SAIC Group's independent supply of spare parts business involves a number of joint ventures. Its major foreign partners include Visteon, Valeo, Federal-Mogul, and Kosaka, which are well-known multinational parts companies that are in the leading position in their respective fields. The joint ventures have accumulated rich experience in manufacturing processes, quality management, product development and market expansion, and have gathered and cultivated a strong and capable talent team. After the completion of this transaction, the joint venture will be in technology, management, and culture. The leading edge will be inherited.
New Speed: Future Strategy Ensures Sustainable and Healthy Growth of Bus Shares
After the reorganization, how the bus shares will protect their continued healthy growth has become the focus of attention in the industry. According to informed sources, the bus shares after the reorganization transaction will be transformed into an independent supplier of auto parts in China. The auto parts industry has a broad space for growth in China. The company's future development strategy states that there are three major development strategies: neutralization, zero-levelization, and internationalization.
To achieve a national layout
Neutralization refers to the consolidation of the existing industrial bases, as well as the nationwide layout of the entire vehicle, actively infiltrating other markets, and gradually increasing the scale of external support. The company will rely on the advantages of the parts and components companies to be purchased in the market, management and technology, combined with the development of the Yangtze River Delta region and the development of the country’s western region and the revitalization of the old northeast industrial zone's development strategy, with emphasis on the coastal, Midwest and Northeast regions. To expand and realize a nationwide layout, through joint ventures, cooperation, mergers, reorganizations, and other forms, efforts will be made to increase business outside the Group's market and gain greater room for development.
Synchronous vehicle company
Zero-levelization refers to the ability to develop in tandem with the entire vehicle company and become a strategic partner for vehicle companies. The company will make full use of its core competitiveness to participate in the simultaneous development of complete vehicle companies, module supply, system integration and supply chain management, etc., to provide more value-added for the vehicle companies, and then realize the common development with the vehicle companies. .
Expand international business
Internationalization refers to actively integrating into the global supply chain of auto parts and forming new breakthroughs in the international business field through mergers and acquisitions. On the one hand, the company will seize the opportunity of the reorganization of the value chain of the international auto parts industry and actively participate in the procurement business of multinational vehicle manufacturing companies and parts and components companies. Based on the technical advantages and management advantages accumulated over many years, the company will continue to track zero. Component frontier technology, further increase production efficiency and quality levels, achieve economies of scale, and actively integrate into the global supply chain of auto parts. On the other hand, the company will seize the opportunity of mergers and reorganizations of overseas auto parts companies, aiming at mergers and acquisitions that can form close synergies with existing systems and meet the company’s long-term development strategy in technology, products, supply chain, etc. Resource integration, rapid access to new technologies and new customers, seeking breakthroughs in international business, expanding the proportion of overseas sales, and achieving an international development strategy.
In general, the bus shares will continue to improve the R&D level of parts and components, form a lean and highly efficient component manufacturing system, take the domestic market as the leading factor, consolidate and develop supporting passenger car business, and actively expand the commercial vehicle parts market and aftermarket parts and components. The market and overseas markets, optimize the industrial structure, establish and improve the auto parts supply system with core competitiveness and international operation capabilities, and become part suppliers that are integrated into the global parts industry chain.
According to the “Broadcast Model Simulation Profit Forecast of Bus Shares†reviewed by Deloitte Touche Tohmatsu CPA Limited, the calculation of the total capital stock after the issuance and the company’s simulated pro forma consolidated financial statements attributable to the net profit of the parent company, 2007, 2008 By May, the company’s earnings per share were 0.445 yuan and 0.24 yuan, respectively, an increase of 162% and 699% respectively compared with the pre-transaction, and the ROE increased by 72% and 297% respectively. The company’s profitability and sustainable development capacity will Greatly enhanced.