Regarding the news of the capital increase of Dongfeng Yueda Kia (hereinafter referred to as DYK), a stone stirred up thousands of waves.
On the evening of March 2, Yueda Investment issued an announcement that the company gave up participating in the current round of capital increase of company, and the proportion of equity held by YUDA Investment in company after the capital increase will be reduced from 25% to 4.2%.
This move of Yueda Investment has also been interpreted by the industry as the Chinese side giving up the management right of, and even more so, it has made a heartfelt remark that Kia's shareholding in it has exceeded 90%...
Various "conspiracy theories" in the field of public opinion about dyk's imminent separation can be described as endless.
So, is the news that Yueda Investment has given up the capital increase really a "comprehensive retreat"? Does the collective "singing" of the public opinion field really represent a change of hands on behalf of China's right to speak?
Kung Fu Automobile believes that simply on the move of whether Yueda Investment will increase capital, it is too arbitrary and one-sided to "judge" that the Chinese side has given up its management rights.
Behind the public opinion of this sudden event, it may also be a "misreading".
A move that was "misread"
Why would Kung Fu Auto say that Yueda's abandonment of the capital increase was a "misread" move?
First of all, everyone only focused on the words "Yueda Investment gave up capital increase" and did not have a comprehensive understanding of the entire outline of the event.
Yueda Investment, which broke the news of giving up the capital increase, is actually just a listed subsidiary of Yueda Group.
Although Yueda Investment abandons the capital increase, its "abandonment part" will be funded by Jiangsu Yueda Automobile Group Co., Ltd.
In short, the money will still come out. The money that Yueda investment has not produced will still be paid by Yueda Group.
Secondly, the remarks on the Internet such as The Chinese side gives up its controlling interest and Yueda Group is bearish on the prospects of are also purely fictitious.
If you go to the announcement released by Yueda Investment in detail, you will find that in fact, Yueda Group is a different way to express its "support" for DKY.
After this round of capital increase of $600 million, holds 50%, 45.8% and 4.2% of the shares of Kia Corporation, Yueda Automobile Group and Yueda Investment.
In other words, the shareholding ratio of South Korea's Kia and Yueda Group is still 50% each.
Looking a step further, this is just the listed subsidiary "transferring" the controlling right to the parent company, and the actual Chinese controlling right has not changed at all.
In other words, this is only a "strategic choice" for Yueda Investment, not the "right to speak" that everyone thinks that the Chinese side has given up its "controlling interest" and "right to speak".
From this point of view, "Yueda Investment abandons the capital increase" is not "Yueda Group abandons the capital increase", but also a "misreading" of it by the outside world.
Some actions that are "ignored"
In fact, not only the misreading of equity changes, but also many actions that have been ignored by the outside world in some recent major activities.
For example, in early March, the 2022 Kia Partners Conference held in Hainan, Jiangsu Yueda Group Party Secretary, Chairman of the Board, chairman of the company's chairman Zhang Naiwen attended the event.
Zhang Naiwen's presence is not difficult to show that Yueda Group attaches great importance to Kia's joint venture, and it also confirms the "misreading" of equity by the outside world.
After all, if Yueda Group does not report expectations, why should such a "heavyweight" participant attend.
In addition, in early February, Kia Co., Ltd. of South Korea signed an agreement with the People's Government of Yancheng City and Jiangsu Yueda Group to "expand investment" and will form a new joint venture company.
According to Kung Fu Automobile, the new joint venture will release its name around the Beijing Auto Show this year, and the two sides will also expand investment in the introduction of more global models and new energy models.
Yueda Group said that it will use its resources in the whole industry chain of vehicle manufacturing, research and development, parts and components and automotive service industry to actively empower the new joint venture company and achieve win-win cooperation with partners.
Let me ask you, at such a time, how can Yueda Group easily withdraw from the market?
At the moment when public opinion is so hotly speculated, a series of "ignored" actions of Yueda Group have also confirmed that it is a typical example of "low-key big things".
Looking back, kia again, it is also strategically clear.
It needs to be made clear that Kia's "2022 Strategy" has been implemented with "Yueda Kia" as the main body.
In terms of products, the first exclusive electric model EV6 has been sought after since pre-sale, which is undoubtedly a welcome.
In the future, Kia will launch more than one new electric vehicle model in the Chinese market every year with the new pure electric vehicle EV6 as the starting point, and build a new electric vehicle matrix of 6 new electric vehicles.
At the same time, Kia is actively promoting the construction of an online sales system, a charging network, and a City Store benchmark store to prepare for sales.
From organization to strategy, from product to sales, everything is new and neat, and there is a taste of momentum.
Both sides have released their sincere intentions and taken out key resources for the prospects of the new joint venture.
All kinds of indications show that both sides have released their solid sincerity and reached a consensus on the prospects of the joint venture. Therefore, it is very reasonable to have higher expectations for the joint venture between the two parties.
Kung Fu shoots
In fact, a series of actions that are easy to be "ignored" reflect that Yueda and Kia are not only working closely together, but also have full expectations for the future of the joint venture.
The cooperation between the two sides is also based on seeing the existence of "strategic opportunities" in the future, and integrating resources and working hard.
Therefore, Kung Fu Automobile believes that Yueda's "retreat" is indeed a move that has been "misread".
The series of actions of the future cooperation between the two sides is the best clarification and explanation of the remarks.