From five humble factories to the world's largest supplier of stator cores for automobile engines, from the shore of Taizhou Bay to the coast of the East China Sea, from the production of single motor parts to the integration of R&D, production and marketing of automobile generator stator and assembly, micro motor rotor, electric vehicle stator and assembly, VVT, etc......
In the motor industry, the development story of Xinzhi Group is always talked about by the outside world. However, in the secondary market, the share price of Xinzhi Group has been quiet for a long time and is still hovering at a low level.
What is even more worrying is that CITIC Trust, the largest shareholder, is planning to sell it through a public solicitation of transferees. Many investors are worried that with the change of ownership of the largest shareholder, the power structure of Xinzhi Group may change.
Leading motor spare parts, new energy
Founded in July 1990, Xinzhi Group is mainly engaged in the research and development, manufacturing and sales of various motor core components. The main products are the stator and assembly of automobile generators, the rotor of automobile micro and special motors, the stator and assembly of electric bicycles, the stator of elevator traction machines, the rotor of electric tool motors, VVT (automotive variable valve timing system), the rotor of home appliance motors, etc.
Among them, the company's automotive stator core products account for more than 45% of the global market, and it is the world's largest supplier of automotive generator stator cores.
With the improvement of environmental protection awareness and the increasingly serious energy crisis, new energy vehicles, as a low-carbon and environmentally friendly means of transportation, are gradually attracting global attention and respect.
As one of the three core components of new energy vehicles, "battery, motor and electronic control", the motor is the direct source of power for new energy vehicles and has a decisive impact on the power performance of the vehicle.
In order to achieve the rapid advancement of new business and promote the stable development of the company's business, the company has launched the strategic plan of "one red flower and two green leaves" since 19 years, taking the new energy vehicle business as the development direction and relying on the development model of traditional motor parts and electric bicycle parts.
In November 2020, Xinzhi Group produced the first stator and rotor product of high-voltage oil-cooled motor, and in December 2021, the first new energy stator and rotor assembly production line was successfully delivered.
In October 2022, the EDS1 project, the first new energy vehicle drive motor cooperated by Xinzhi Group and Geely Weirui, was put into production, and the most advanced flat wire technology was applied to the project. In the EDS1 project, Xinzhi Group conquered the eight-layer flat wire technology, broke the international monopoly technology, and filled the domestic gap.
In the same year, Xinzhi Group became a batch supplier of stator and rotor business of Fodi Power Co., Ltd., a wholly-owned subsidiary of BYD, providing new energy stator and rotor cores and some assembly businesses.
At present, in the field of new energy business, Xinzhi Group has connected with specific customers such as BYD, UMC, Geely, Shanghai Electric Drive, Dongfeng Wind Power Drive, etc., and has become a leading enterprise in the field of new energy drive motors.
With the rising market penetration rate of new energy vehicles and the continuous expansion of the market scale of related parts, investment and production expansion have become an inevitable choice for many industrial chain enterprises.
In 2023, Xinzhi Group's new energy vehicle motor stator and rotor assembly project will start construction in Chongqing Liangjiang New Area, with an investment of 1.31 billion yuan, and will build a R&D and production base with an annual output of 3 million new energy vehicle drive motors.
Details of the projects under construction of Xinzhi Group
On January 26, 2024, Xinzhi Group announced that based on the company's strategic planning and future business development needs, the company plans to build a new energy vehicle motor stator and rotor assembly digital factory in Junshan New Town, Wuhan Economic and Technological Development Zone, with an annual output of 2 million new energy vehicle stator and rotor assembly projects, to provide supporting services for new energy vehicle enterprises in Wuhan and surrounding areas. To this end, the company plans to set up a wholly-owned subsidiary, Xinzhi Motor (Wuhan) Co., Ltd., as the main body of the project construction to carry out the promotion and implementation of the project.
On February 18, Xinzhi Group's construction project with an annual output of 3 million new energy vehicle stator and rotor assemblies started in Jiaojiang. With an investment of 1.5 billion yuan, the project will build a R&D and production base with an annual output of 3 million sets of stator and rotor assemblies for new energy vehicles. After it is put into production, it is expected to produce 3 million sets of stator and rotor assemblies for new energy vehicles annually, with annual sales of 4.8 billion yuan and more than 2,000 jobs.
It is reported that since September last year, Xinzhi Group's orders have skyrocketed, and it has now been scheduled for the second quarter of this year. In January 2024, the order volume increased by more than 20% year-on-year, and the output value is expected to hit a record high in the first quarter.
According to the report for the third quarter of 2023, Xinzhi Group achieved operating income of 3.282 billion yuan in the first three quarters, a year-on-year increase of 19.79%, and net profit attributable to shareholders of listed companies of 169 million yuan, a year-on-year increase of 24.72%.
CITIC Trust seeks another equity transfer
On the evening of April 1, Xinzhi Group announced that the company's largest shareholder, "CITIC Securities, CITIC Trust and CITIC General Stock Pledge Directional Asset Management Plan", intends to transfer 25.59% of the company's shares held by it by agreement through public solicitation and transfer.
According to public information, the equity that CITIC Trust intends to transfer originally came from the Yin Xingman family. Yin Xingman's family is the founder of Xinzhi Group and the actual controller of the company, and is in an absolute controlling position.
On April 12, 2017, Yin Xingman, the controlling shareholder of Xinzhi Group, and the actual controller of Xinzhi Industry and Trading, signed the "Share Transfer Agreement" with Changying Tianqi, and the two intend to transfer 25.70% and 0.30% of the equity to Changying Tianqi respectively, with a total of 26% equity, and the transfer price is 23.26 yuan per share, with a total price of 2.419 billion yuan.
After the completion of the above-mentioned equity transfer, the Yin Xingman family cashed out 2.419 billion yuan and gave up the position of the largest shareholder, but still retained the position of the actual controller. Changying Tianqi became the largest shareholder with a shareholding ratio of 26%, but did not obtain control of Xinzhi Group.
Since then, Changying Tianqi has suffered a debt crisis, and its shares of Xinzhi Group have been auctioned, but the auction has not been successful. The court ruled that the 104 million shares of the company held by the executor Changying Yunqi should be valued at 1.572 billion yuan, equivalent to 15.113 yuan per share, and handed over to CITIC Securities Co., Ltd., the executor, to pay off the same amount of debt, and the asset management plan became the largest shareholder of Xinzhi Group.
However, since June last year, CITIC Asset Management has repeatedly issued relevant announcements for public solicitation, and intends to transfer the company's shares by agreement, but it has never been successful.
"CITIC Trust doesn't want to be the largest shareholder, it needs cash. This may be the main reason for CITIC Trust's public solicitation of transferees. "In the eyes of market participants, once the equity transfer of CITIC Trust is completed, the transferee will spend more than 1.5 billion yuan to take over, and may not be willing to be a second shareholder. At that time, the power structure of the Xinzhi Group is bound to change.