Shuguang shares 132 million yuan acquisition of old model assets to receive an inquiry letter, layout of new energy can save themselves

The dividends of the new energy vehicle market are attractive again, and the long-dormant Shuguang shares are brewing to enter the pure electric passenger car market.

On the evening of September 28, Liaoning Shuguang Automobile Group Co., Ltd. (hereinafter referred to as "Sugon Shares") received an inquiry letter from the Shanghai Stock Exchange, asking it to explain the rationality of acquiring the relevant assets from the controlling shareholder even though the two models had been discontinued for many years.

The day before receiving the inquiry letter, Sugon announced its intention to acquire the unpowered body assets of the S18 (Ruilin M1) and S18D (Ruilin X1) models held by related parties, and said that the move was to accelerate the development of pure electric passenger car projects. However, for the move of Shuguang shares, some investors expressed their incomprehension, which is obviously bearish news. As of the close of trading on September 28, Sugon closed at 3.7 yuan per share, up 3.64%.

The acquisition of the "car shell" for 132 million yuan was questioned by investors about the old technology of the model

Sugon co., Ltd. said in the announcement that it intends to acquire the advanced and mature technology of Chery S18 (Ruiqi M1) and S18D (Ruiqi X1) models held by Tianjin Meiya New Energy Automobile Co., Ltd. (hereinafter referred to as "Meiya New Energy") to develop and produce pure electric cars and SUVs to accelerate the progress of pure electric passenger car projects; It is reported that Meiya New Energy is a wholly-owned subsidiary of Huatai Automobile Group (hereinafter referred to as "Huatai Automobile"), the controlling shareholder of Sugon Shares, that is to say, it is a related party of Sugon Shares.

For the purpose of the acquisition, Sugon indicated that in order to follow the national strategy of encouraging the development of strategic emerging industries such as new energy vehicles, extend and expand the new energy passenger car market, fill the gap in the pure electric passenger car market by accepting mature technology and continuous digestion and absorption of independent research and development, accelerate the transformation of product structure, develop and produce pure electric cars and SUVs, and promote pure electric passenger car projects.

However, it is worth noting that Shell Financial Reporter found from the related party transaction announcement disclosed by Sugon that the assets purchased by Sugon include a total of 2138 fixed assets of ruiqi M1 and ruiqi X1 models, including invention patents, design patents, etc. The intangible assets of ruiqi M1 and ruiqi X1 models The technology transfer price of the above transaction is based on the relevant assets of 140 million yuan obtained by Meiya New Energy from Chery Automobile, deducting the discount fee of 7.7 million yuan, and after the discount, 132 million yuan is used as the purchase consideration.

It is reported that ruiqi M1 and Ruiqi X1 are miniature cars launched by Chery Automobile in 2009, and the electric version of Ruiqi M1 was launched in 2010; but due to poor market performance, Chery Automobile discontinued these two models and the entire Ruiqi brand in 2012. In 2017, Meiya New Energy acquired the related assets of these two models through related transactions with Chery Automobile. For The acquisition of unpowered body by Shuguang Shares, Cui Dongshu, secretary general of the National Passenger Car Market Information Joint Association, said that perhaps because after having the body structure, the layout of the three-electric system can be quickly mass-produced.

But for the move of Shuguang shares, most investors have doubts. Some investors have asked, "Why did you buy two car shells, and what is the urgent use?" Some investors directly said why they would acquire such backward technology, and more investors questioned whether this move was a relief for major shareholders. Shell financial reporters found from platforms such as Stock Bar that investors' doubts are more concentrated on the old models and old technology of these two cars, and why Sugon shares should spend 132 million yuan to buy.

Sugon's move was not only questioned by investors, but also by the Shanghai Stock Exchange. On the evening of September 28, Sugon issued an announcement that it had received an inquiry letter from the Shanghai Stock Exchange, requesting supplementary disclosure of the main situation of the two models, explaining the market competitiveness of the relevant models after mass production and the quality of the acquired assets, explaining the main considerations and rationality of acquiring the relevant assets from the controlling shareholders even though the two models had been discontinued for many years, and whether the transaction conveyed liquidity to the controlling shareholders and the actual controllers.

Sold more than 100 vehicles in a single month, the capacity utilization rate in the first eight months was only 10.7%

Whether it is the information revealed by the announcement of the related party transaction of Sugon shares to purchase assets, or the general view in the industry, it is believed that Sugon shares' move or want to achieve self-help through pure electric passenger cars.

The choice of the first from the micro-electric vehicle into the new energy vehicle market, on the one hand, this market segment is the current hot spot in the new energy vehicle market; data from the Association of Passenger Transport shows that as of the end of August, Wuling Hongguang MINI EV has been sitting on the new energy vehicle sales champion for 12 consecutive months, from the perspective of the overall market of micro-electric vehicles, low-end electric vehicles in August are still strong, and the market share of A00-level pure electric vehicles accounts for 33% of the total share of pure electric vehicles.

On the other hand, Ren Wanfu, an analyst in the automotive industry, said that compared with other levels of pure electric vehicles, the technical requirements are not high, and it is relatively easier to achieve mass production. For the current Shuguang shares, it is more urgent to quickly realize the mass production and listing of pure electric vehicles.

It is reported that the main business of Shuguang Co., Ltd. is divided into light vehicles, commercial vehicles, axles and other auto parts business, with two brands of Huanghai Bus and Shuguang Axle. Sugon production and sales data in August shows that the total sales of Sugon in August were 161 vehicles, down 75.1% year-on-year, of which bus sales were 0; not only that, the production of complete vehicles in August was only 34 vehicles, down 93.06% year-on-year. In fact, in recent years, Shuguang's vehicle sales have continued to decline, with vehicle sales of 21,100 units, 15,600 units, 7,710 vehicles and 7,892 vehicles in 2017-2020, respectively; in the performance report, it has also repeatedly stated that it will develop new energy vehicle buses and new energy axles.

Shell financial reporter statistics combed and found that in the first 8 months of this year, the comprehensive capacity utilization rate of Shuguang shares was only 10.7%. Sugon's three vehicle plants have a combined production capacity of 68,500 units, compared with 7,892 vehicles sold in 2020, with a capacity utilization rate of less than 13%.

The decline in vehicle sales directly affects the performance of Shuguang shares, and the net profit attributable to the shareholders of listed companies in the first half of this year was about -100 million yuan, a year-on-year decrease of 715.82%. Not only that, the rough statistics of Shell financial reporters found that from 2012 to the first half of this year, the cumulative loss was 1.84 billion yuan.

Major shareholder stakes were frozen and management was in turmoil

Sugon shares this year's semi-annual report shows that all the shares of Shuguang shares held by the controlling shareholder Huatai Automobile have been frozen by the judicial round, and the freezing period is three years. Some securities analysts said that the freezing of the equity of major shareholders will affect the funds and business of Sugon shares to a certain extent.

In 2017, Huatai Automobile entered the ownership of Shuguang shares, and before the acquisition, Huatai Automobile had acquired Shuguang shares at a high price of 23.21 yuan / share, on the one hand, it was considered to be for backdoor listing, on the other hand, it was considered to want to borrow Shuguang shares to obtain the production qualification of new energy buses. However, it is clear that the combination of the two has not formed a synergy, Huatai Automobile's semi-annual report this year shows that as of June 30, Huatai Automobile's direct debt overdue amount is about 3.822 billion yuan, of which the amount involved in litigation is 3.822 billion yuan; Shuguang shares are also gradually on the verge of falling behind.

Not only that, but the management of Sugon shares is also turbulent. On August 21, Sugon issued an announcement that President Ye Ziqing resigned for personal reasons, and 4 days later, Sugon issued another announcement that Fan Dongchun, director and financial director of the company, resigned. Shell financial reporter combed the announcement of Shuguang shares and found that in the past three years, Sugon shares have replaced three chairmen; 14 directors, supervisors and senior managers have left their posts, of which three board secretaries have left within three months.

For Shuguang Shares, self-help is obviously urgent, but it is still doubtful whether the acquisition of the technical assets of the old models eliminated by Chery Automobile 10 years ago can help it start the pure electric passenger car business.

Beijing News reporter Wang Linlin

Edited by Chen Li Proofreader Li Shihui