"Car Circle Layer" Peng Baoxuan
Edited by Ge Fanmei
On February 12, Anhui Jianghuai Automobile Group Co., Ltd. (hereinafter referred to as "Jianghuai Automobile", 600418.SH) released the January 2022 production and sales express, Jianghuai Automobile produced 51,400 units in January, with sales of 51,600 units, and production and sales fell by 10.17% and 10.64% respectively month-on-month.
Jianghuai Automobile told Thinking Finance that the sales volume of Jiangqi Group declined in January 2022, which was objectively affected by factors such as the Spring Festival holiday earlier than last year and the repeated epidemics.
In addition, Jianghuai Automobile also issued an announcement on the results of shareholder reduction on February 23. From the second half of 2021 to the present, the shareholders of Jianghuai Automobile holding more than 5% of the shares have frequently reduced their holdings.
At the same time, due to the issuance of a number of government subsidy announcements by Jianghuai Automobile in 2021, the disposal of sub-asset equity, and the replacement of self-raised funds by raising funds, the issue of whether the company's cash flow is sufficient has attracted much attention.
Sales of electric passenger cars have soared
According to the January 2022 production and sales report, Jacque Automobile's passenger car sales were 24,100 units, commercial vehicle sales were 27,400 units, and passenger cars and commercial vehicle sales accounted for 47% and 53% respectively.
According to the China Automobile Association, in January 2022, domestic commercial vehicle sales reached 344,000 units, down 25.1% year-on-year. Jianghuai Automobile told Thinking Finance that the company's commercial vehicle sales in January fell by 21.9% year-on-year, outperforming the overall level of commercial vehicles. Because commercial vehicles account for a relatively high proportion of the company's business, the overall decline has been widened.
However, Jac Motors' pure electric passenger cars increased by nearly 90%, achieving sales of 15,500 units.
Jianghuai Automobile told "Thinking Finance" that due to the strong demand for pure electric passenger car terminal market, and Jianghuai Automobile's increased research and development efforts in the field of intelligent new energy vehicles, its Sihao E10X has won the favor of the majority of users based on accurate market positioning and excellent product strength, boosting the overall sales of a significant increase.
According to the official website, Jianghuai Automobile listed pure electric vehicles "A00-level Sihao E10X", "A-class Sihao E40X" and "A-class Sihao E50A" in 2021, all of which belong to the Sihao brand of Jianghuai Automobile.
From the price point of view, the Sihao brand covers the low-end market segment. The price of the E10X series is 46,900-76,900 yuan per unit, the price of the E40X is 130,000-149,900 yuan per unit, and the price of the Sihao E50A is 140,900-164,900 yuan per unit.
The Sihao E10X carried the brand sales banner. According to Pacific Auto Network, the Sihao E10X achieved sales of 4,509 units in January 2022, down nearly 24% from 5,578 units in December 2021. The sales performance of the Sihao E40X and Sihao E50A was average, with only 25 Sihao E40X units sold in January 2022 and 302 Sihao E50A sold.
From the perspective of the automobile market with a unit price of less than 100,000 yuan, the sales volume of Sihao E10X is slightly inferior. According to the data of the Association, SAIC Motor's brand Hongguang MINI continued to rank first in the sales list of new energy cars, achieving sales of 26,700 units in January 2022. Chery Automobile's "rising star" QQ ice cream has sold considerable sales since its launch in December 2021, achieving sales of 9,984 units in January 2022, ranking fifth in the sales list of new energy cars.
In fact, the Sihao brand has a close relationship with Volkswagen (China) Investment Co., Ltd. (hereinafter referred to as "Volkswagen China"). In 2017, JAC Automobile and Volkswagen China jointly invested in the establishment of JAC Volkswagen Co., Ltd. (hereinafter referred to as "JAC Volkswagen") with 50% and 50% of the equity respectively. Subsequently, JAC Volkswagen launched the Sihao brand in April 2018 and released the first electric SUV model, the Sihao E20X.
In 2020, Volkswagen China increased its investment in JAC Motors. First, it acquired a 50% stake in Jianghuai Automobile Group Holdings Co., Ltd. (hereinafter referred to as "Jianghuai Automobile Group"), the parent company of Jianghuai Automobile.
Volkswagen China then increased its stake to 75% to achieve control over JAC Volkswagen. After the completion of the capital increase, JAC Volkswagen changed its name to Volkswagen (Anhui) Co., Ltd. and is the third pure electric vehicle plant established by Volkswagen China in China.
Regarding the cooperation with Volkswagen China, Jianghuai Automobile told Thinking Finance that it is currently starting construction of a series of JIANGHUAI Volkswagen strategic cooperation projects with a total investment of more than 20 billion yuan, and the project will build a production capacity base of 350,000 new energy vehicles in phases. The first phase has completed the acquisition of the assembly and painting workshop of the second plant of Jiangqi Passenger Vehicle, and started the work related to the new stamping and welding workshop, which is expected to be completed by the end of 2022 and achieve mass production in 2023, with a planned operating income of 30 billion yuan by 2025 and 50 billion yuan by 2029.
In addition, Jianghuai Automobile also "hand in hand" WEILAI Automobile, which is the foundry of WEILAI Automobile since 2016, and the main cooperation is Weilai ES8, ES6, EC6 and other products. In March 2021, Jianghuai Automobile and NIO Automobile established Jianglai Advanced Manufacturing Technology (Anhui) Co., Ltd. to deepen strategic cooperation.
Major shareholders frequently reduce their holdings
Entering February, Jianghuai Automobile successively issued an announcement on the shareholder reduction plan on February 12, and issued an announcement on the results of the reduction on February 23, the main entities of the reduction are Construction Investment Investment Co., Ltd. (hereinafter referred to as "Construction Investment") and Anhui State-owned Capital Operation Holding Group Co., Ltd. (hereinafter referred to as "Anhui State Holding Group").
Among them, CCIC Investment plans to reduce its holdings by auction from March 7 to June 4, 2022, and the number of shares planned to be reduced does not exceed 21.84 million shares, and the proportion of the reduction does not exceed 1%.
Previously, CCIC Investment just ended the previous round of reduction plans from August 2, 2021 to January 27, 2022, with a cumulative reduction of 279 million yuan. Before the reduction, CCIC Invest held 6.05% of the shares of Jianghuai Automobile, and after reducing its holding of 16.5 million shares, CCIC Invest held 4.49% of the shares.
Time back in time, CCIC had planned to reduce its holdings from January 8 to July 7, 2021, but in the end it did not implement the reduction due to market reasons.
Judging from the stock price trend of Jianghuai Automobile, the closing prices on January 8 and July 7, 2021 were 11.41 yuan / share and 11.56 yuan / share, respectively. As of the close of trading on February 23, 2022, the stock price of Jianghuai Automobile was 14.38 yuan per share, with a total market value of 31.406 billion yuan and PE (TTM) 106.4 times.
As another major shareholder who originally held more than 5% of the shares, Anhui State Holding Group completed its shareholding reduction plan on February 22, 2022, accumulating 379 million yuan in cash. Since August 30, 2021, Anhui State Holdings Group has reduced its holdings by a total of 21.76 million shares, holding 4.33% of the shares after the reduction.
In the car enterprise market, it is not uncommon for major shareholders to reduce their holdings and cash out. According to the statistics of the operator's financial network, in addition to Jianghuai Automobile's name on the "2021 Annual Car Company Shareholder Cash-out List", there is also Zotye Automobile (000980. SZ), Beiqi Blue Valley (600733. SH), BYD (002594. SZ) and other car companies on the list.
Among them, Zotye Automobile did not sell a car in 2021, but the shareholders cashed out more than 100 million yuan. The shareholders of Beiqi Blue Valley, who originally held 5.36% of the shares, reduced their holdings by a total of 493 million yuan in April 2021. Li Ke, an executive of BYD, cashed out about 205 million yuan in 2021, the shareholders who originally held 5.96% of the shares cashed out about 2.358 billion yuan, and the director of BYD, Xia Zuo, now cashed out about 3.102 billion yuan.
Is the cash flow sufficient?
Behind the shareholder reduction, Jianghuai Automobile has not released the 2021 annual performance forecast. In this regard, Jianghuai Automobile told "Thinking Finance" that the Shanghai Stock Exchange did not make mandatory requirements for performance express reports, and since the annual report had not yet been completed, it did not release a performance forecast, and the company planned to disclose the 2021 annual report on March 25, 2022.
In the first three quarters of 2021, Jianghuai Automobile achieved operating income of 30.797 billion yuan, a year-on-year decrease of 0.21%; net profit was only 134 million yuan, down 42.68% year-on-year; and net profit attributable to the mother was 195 million yuan, a year-on-year increase of 359.98%.
Among them, Jianghuai Automobile's net profit attributable to the mother in the third quarter of 2021 was 283 million yuan, down nearly 249% compared with the data in the third quarter of 2020. Jianghuai Automobile said in the announcement that it received large government subsidies in the third quarter of 2020 and the increase in the disposal of large assets of subsidiaries, resulting in an increase in revenue in the third quarter of 2020.
However, Jianghuai Automobile also continued to receive a lot of government subsidies in 2021.
Wind data shows that from January 1, 2021 to February 8, 2022, Jianghuai Automobile issued a total of about 16 announcements to receive government subsidies, which show that government subsidies will have a positive impact on profits in 2021. According to the incomplete statistics of the researchers of "Thinking Finance", Jianghuai Automobile and its holding subsidiaries have received a total of 1.565 billion yuan in government subsidies in 2021.
Regarding the specific amount of government subsidies, Jianghuai Automobile replied to "Thinking Finance" that because it involves the annual report data of enterprises, the amount after the audit of the accounting firm needs to prevail.
In addition, Jianghuai Automobile will also dispose of some sub-assets in 2021.
On October 30, 2021, JIANGHUAI Automobile intends to transfer 10% of the equity of Kaimeisi New Energy Technology Co., Ltd. (hereinafter referred to as "Kaimeisi") to the parent company Jiangqi Group, and after the completion of the transfer, Jianghuai Automobile will no longer hold the equity of Kaimeisi at a transfer price of 81.7603 million yuan.
Caymeis is an electric vehicle charging pile developer established in 2019 by Volkswagen China, China FAW Co., Ltd., Wanbang Digital Energy Co., Ltd. and JacHuai Automobile, holding 30%, 30%, 30% and 10% of the shares respectively.
Jianghuai Automobile said that the transfer is due to the fact that Caymeis is in the early stage of development and is still in a state of loss, through the transfer of Kaimeis equity, resource integration can be realized, which is conducive to The kaimeis to achieve better development.
On the same day, JIANGHUAI Automobile also publicly listed and sold 37% of the 67% equity of Anhui Jianghuai Fuzhen Body Equipment Co., Ltd. (hereinafter referred to as "Jianghuai Fuzhen Body"), with a corresponding value of 63.3643 million yuan. The transfer of part of the equity of Jianghuai Automobile is to further promote Jiangfu Vehicle Body to further develop the external market and improve business efficiency. After the completion of the transaction, JAC Automobile will lose control of the Jiangfu vehicle body.
Whether it is government subsidies or the disposal of sub-assets, it has a positive impact on cash inflows.
It is worth mentioning that Jianghuai Automobile also uses the raised funds to replace self-financing. The funds raised came from Jianghuai Automobile's non-public issuance of shares to Jiangqi Group. As of November 30, 2021, Jianghuai Automobile received a net amount of RMB1.979 billion in proceeds. Jianghuai Automobile plans to use the 1.2 billion yuan raised to repay the bank loan, and the remaining funds will be used to supplement the working capital after deducting the issuance fee.
Regarding whether the company's cash flow is sufficient, Jianghuai Automobile told Thinking Finance that Jianghuai Automobile completed a non-public issuance of shares in the fourth quarter of 2021, raising about 2 billion yuan. And the net cash flow generated by operating activities in the first three quarters of 2021 was 517 million yuan, and the capital flow of Jianghuai Automobile can meet the needs of current development.