Recently, Shenzhen United Equity Exchange officially disclosed the listing information of 100% equity of Xi'an Lishan Automobile Manufacturing Co., Ltd. (hereinafter referred to as "Lishan Automobile"), which will be from April 1 to April 28, 2024, for a period of about one month.
The listed amount of 1 yuan has attracted attention, will this century-old bus factory have a future?
Lishan brand bus is the bus appearance in the memory of many Xi'an people, and it is also the "luxury bus" that Xu Sanduo took to the fifth class of the grassland in "Soldier Assault".
It's just that today's Lishan buses seem to only exist in people's memories and video materials, and the restructuring and transformation of the company's main business in recent years are also unable to save this nearly 100-year-old automobile factory.
The "1 yuan sale" is just a gimmick, and there are additional conditions
"1 yuan or 0 yuan transfer of equity" this operation, in the past two years unexpectedly frequent hot search, the former Huaxi Village, known as the "world's first village", transferred 80% of the equity of Huaxi Group for 1 yuan, and then there was a Super Wuhan Three Towns Club 0 yuan free transfer.
This asset restructuring operation, which was originally mostly used between enterprises controlled by the same actual controller, has also become one of the final choices for debt-ridden enterprises to find their next home.
Of course, it seems that only 1 yuan can win the surface of the enterprise, either it needs to undertake a large amount of debt, or there are many terms and conditions that cost a lot of money, and the transfer of Lishan Automobile Plant is no exception.
The takeover party needs to bear the following legacy issues of Lishan Automobile:
1. Lishan Automobile 3402 family area has not carried out the transformation of three supplies and one industry, and has been provided for the reinforcement of the real estate in the 3402 family area and the renovation costs of three supplies and one industry (the final amount is subject to the actual amount), which needs to be implemented by the transferee and the target enterprise according to the requirements of the old community project renovation plan until all the transformation standards are met and finally accepted by the competent department.
2. Lishan Automobile has accrued the "welfare expenses for absent personnel" of RMB 41,361,900 (the final amount is subject to the actual amount payable), and the transferee and the target enterprise shall fulfill the obligation to pay the welfare expenses for absent personnel in accordance with the calculation standards in the "Xi'an Lishan Automobile Manufacturing Co., Ltd. Welfare Expenses for Absent Personnel Welfare Expenses", the requirements of the employee placement plan, and the standards determined by laws, regulations and local policies.
3. Lishan Automobile has signed the "Loan Confirmation and Extension Agreement" and the "Mortgage Contract" with the shareholder China National Chemical Equipment Co., Ltd. for the shareholder's loan of RMB 56,057,050 and the repayment matters, and provided mortgage guarantee with the real estate in the factory area.
4. Lishan Automobile and Xi'an Xijing Automobile Co., Ltd. (hereinafter referred to as "Xijing Company") signed the Loan Agreement for the loan of RMB 3,264,771,290 and repayment by related parties.
5. The land in the Lishan Automobile Plant is state-owned industrial land, and if the equity transaction is conducted, there is a risk that the land in the plant area will be required by the competent government department to return or be withdrawn from the use right of state-owned construction land, or the procedures for transferring the allocated land to the land cannot be handled, or the transferee will be required to pay land compensation funds (estimated to be 374,543,845 yuan) and can only change the relevant land use to land that conforms to the government's existing planning use.
6. Lishan Automobile's production and operation capacity cannot guarantee the continuation of relevant qualifications. The automobile-related business within the scope of the company's business has been suspended.
Demolition and reconstruction costs, arrears of welfare fees, arrears of loans, land compensation funds, ...... After a rough calculation, if the transferee takes over Lishan Automobile at a price of 1 yuan, it will need to pay at least 600 million yuan to ensure that the production line and land property rights in hand are not duckweed.
The second transfer, with a debt of 250 million yuan
In fact, this is the second time that Lishan Automobile has been listed for transfer.
In 2019, Sinochem Equipment Corporation has begun to sell Lishan Automobile, which is also a 100% equity transfer, but the price has not been announced but is only negotiable.
I would like to take this opportunity to review the company's situation at that time. The core information is: total assets of 600 million yuan, more than 1,200 employees, with car manufacturing qualifications, and a variety of production car series.
It is worth mentioning that although the name of the listing party is Lishan Automobile, it is clearly mentioned in the plan that the automobile-related business within the company's business scope has been suspended.
At this point, we believe that there are two reasons for the transfer.
The first is naturally the core management issue. According to the debt data disclosed by Lishan Automobile in 2019, the debt situation in 2017 and 2018 was about 100 million yuan, the revenue was maintained at 780 million, and the operating profit was about 200,000 yuan. But in February 2024, the latest figures disclosed in this transfer are that the total assets are 60 million yuan, the total liabilities are 250 million yuan, the revenue is 1.692 million yuan, and the net profit is -3.4358 million yuan.
It is clear that the transfer was not successful at that time.
The second is policy-related. Lishan Automobile, whose shareholders have changed several times, is the latest penetration of China National Chemical Corporation. You must know that after the merger and reorganization of the "two industrializations" in April 2021, the State-owned Assets Supervision and Administration Commission of the State Council held a meeting to introduce the results and the deployment arrangements for the next step.
Among them, it mentions the "two non" (non-main business, non-advantage) divestiture and the "two capital" (inefficient assets, ineffective assets) liquidation, etc., obviously Lishan Automobile may be among them.
A further signal is that in November 2022, the management relationship of Lishan Automobile was adjusted from Sinochem Equipment to Sinochem Asset Management.
Who is Sinochem Asset Management?
As a second-level subsidiary of Sinochem Group, it has historically specialized in asset management and disposal within the group, and public data in 2021 shows that Sinochem Asset Management has revitalized more than 20 enterprises and closed down 150 institutions. For example, when assisting the group in the merger of China Seed Group, it disposed of and divested more than 50 enterprises at all levels, and completed the disposal of inefficient and ineffective enterprises and equity within three years, and operated land and other real estate assets efficiently. Therefore, two years later, Sinochem Asset once again put Lishan Automobile on the shelf.
The supplementary information is that Xi'an Real Estate, a wholly-owned subsidiary of Sinochem Asset Management, is in the process of recruiting personnel, involving multiple positions.
In the past 100 years, the automobile factory has been defeated by the tide of the times
At present, the future of Lishan Automobile is still unknown, and looking back on history, this automobile factory has left a deep enough memory for the industry.
The history of Lishan Automobile dates back to 1929. In the long history of 100 years, time has changed, and the company has also experienced ups and downs, so we can roughly divide it into five periods according to our understanding.
The first stage: 1929-1963 "formation period", initially in the Shaanxi Provincial Government Chairman Song Zheyuan, Feng Yuxiang and other deployment to create Shaanxi Automobile Repair Plant ("Xi'an Lishan Automobile Factory" predecessor), the second year, General Yang Hucheng commanded the Kuomintang 17th Route Army to preside over Shaanxi government affairs, Shaanxi Automobile Repair Plant was taken over and renamed "17th Route Army Automobile Repair Plant" (the company profile describes that "Yang founded") Its main business was the repair of automobiles and the production of auto parts, and it later developed into the largest machine repair factory in Northwest China. In addition to modifying and repairing various imported cars, it also produces some pistons, piston rings, cylinder liners, valves and other accessories.
In 1949, after the liberation of Xi'an, the factory was awarded the No. 521 Factory by the Chinese People's Liberation Army, which was subordinate to the Northwest Field Army and became an important military vehicle repair logistics support base.
The second stage: 1963-1978 "split and phased", in 1964 the factory was divided into two, the factory manufacturing department moved to the western suburbs of Zaoyuan, the establishment of an automobile factory, named "Chinese People's Liberation Army 3402 Factory", the local name is "Xi'an Lishan Automobile Manufacturing Plant", is the current location (No. 90 Zaoyuan West Road), is also the predecessor of Lishan Automobile, the main business is auto parts production; the repair part remains at the original site to form an automobile repair factory, named "Chinese People's Liberation Army 3404 Factory" , the local name is "state-owned Xijing Automobile Factory".
The entrance of Lishan Automobile Factory
The third stage: 1978-1998 "peak period", in the context of "protecting the army to civilian", the factory adjusted the direction of production, so the well-known "Lishan" brand car (mainly for buses) came out, and registered a trademark in 1985. During this period, off-road vehicles converted into off-road ambulances and emergency repair vehicles were also designed and trial-produced. At this time, the main business was "promoted" to automobile production, with an annual production capacity of 800 vehicles. According to public data, from the end of 1978 to 1989, the cumulative output of the factory (buses and off-road vehicles) was more than 4,200 units, and the product sales revenue in the early 90s was 29.31 million yuan.
The "Lishan" brand car in the footage of the TV series "Soldier Assault".
At this stage, it was the peak of Lishan Automobile, and its products were well received in the "military and civilian" market, and the types and models of vehicles were also increased to dozens of types. Not only buses, Lishan Automobile has been involved in highway buses, Tongcun buses, passenger coaches and other models. It has even become a brand product that earns foreign exchange through exports, appearing on the streets of North Korea and other countries.
Yeosan LS6911 bus operating in North Korea
The fourth stage: 1998-2017 "vesting period", due to policy adjustment, the factory was merged into the SASAC sequence to become a subsidiary of CRRC Group, the full name of CRRC Xi'an Lishan Automobile Manufacturing Plant, with a new ownership. During this period, there were two episodes, one was the "merger" return of the 3404 factory, and the other was that Yancheng Zhongda (one of the top 50 private enterprises) tried to take control, but it was not successful.
At this point, it is necessary to draw a phased period, because Lishan Automobile has bid farewell to the "factory era".
The fifth stage: the "restructuring period" from 2017 to the present, it was restructured into a company in 2017 and transferred to Sinochem Group, which is the current equity structure.
Frankly speaking, Lishan Automobile's "factory stage" has been relatively long, and it has entered a downward slope in the future, so what is the current situation?
With this question, the reporter went to No. 90 Zaoyuan West Road to find out, and found that the internal environment had almost nothing to do with the "car", only the old and dilapidated Lishan brand bus parked at the side of the factory told the traces of the past, but the word "medicine" appeared intensively, and the factory was full of a large number of pharmaceutical companies, especially the enterprise index on the first floor of the main office building pointed to Jinrui Pharmaceutical, and the closed door of the office of Jinrui Pharmaceutical Sales Department in the corridor was pasted with a "relocation" notice, and the payment time was March 13, 2024.
However, following the search of the words "Lishan Medical Industrial Park" on the door number, it was found that the official official account of "Lishan Automobile" released a tweet of "Park Style" in August 2023, and the main introduction of "No. 90 Zaoyuan West Road" in the content introduction is already the "Lishan Medical Industrial Park" that appears on the door number, and is positioned as a "comprehensive developer of medical devices, pharmaceutical storage, and pharmaceutical research and development".
You must know that the Lishan Automobile Plant covers an area of 260 acres, that is, more than 173,000 square meters, which is equivalent to the size of 24 football fields.
On the same day, the company released the title of "Company Profile丨Hello, this is Xi'an Lishan", which mentions: "The company focuses on the management ...... pharmaceutical industrial park"
In fact, as early as a year ago, clues were revealed in the changes of Lishan Automobile Industry and Commerce, such as the addition of non-residential real estate leasing and park management services.
Unexpectedly, the sound of manual chainsaw operation came from a factory at the back of the factory, and a small RV was parked inside.
Epilogue:
The development of enterprises will always face various uncertainties, especially like Lishan Automobile, which can smoothly pass through the century-long cycle, which is already remarkable, and on the basis of making contributions to the country and giving full play to its value, it is also trying to transform the "industrial park" in the new environment to try to save itself. Therefore, regardless of the follow-up, we maintain full respect for the "history of individual enterprises" and look forward to a positive outcome of this transfer. We will continue to pay attention to what kind of outcome will be ushered in in the future of Lishan Automobile after it is sold.
(Comprehensive Xi'an Financial Lollipop, Glory Xi'an Net)