Changan, China, Financing 1 Billion 500 Million Yuan &Nbsp; Blood Pfusion To Help Hafei Changhe Recovery

Following January

In March 23rd, China Changan automobile announced that it issued 1 billion 500 million yuan 3 year unsecured medium-term notes in March 28th.

According to the announcement, a total of 1 billion 500 million yuan of financing in Changan, China is Hafei Automobile.

Hafei Changhe enriching blood 750 million yuan

The first phase of the medium term paper prospectus issued by China Changan Automotive Group Limited 2011 (hereinafter referred to as the prospectus) shows that the above 1 billion 500 million yuan financing will be mainly used for two blocks: one is the company's operating capital requirements, the total capital is 450 million yuan, will supplement the working capital of 4 parts enterprises of Chongqing Qingshan pmission branch and 250 million yuan, and add 200 million yuan to the Hafei Automobile and Changhe Automobile supplementary operation fund; the remaining 1 billion 50 million yuan will be used to return bank loans, of which Jiangxi Changhe bank repayment of bank loans is 200 million yuan, Hafei Automobile repayment bank borrowings 350 million yuan, the company headquarters repay bank loans 500 million yuan.

According to this calculation, half of the 1 billion 500 million yuan will be exported to Hafei and Changhe motors.

From the financial point of view, Hafei Automobile and Changhe Automobile Financial and financial pressure are not small.

Before joining China's Changan banner, Hafei Automobile and Changhe Automobile business have been in trouble, with a total loss of nearly 700 million yuan. Changan, China is facing heavy responsibilities of integrating and turning losses.

Before the "blood pfusion", Changan, China has sent a management team to Hafei and Changhe.

Reporters learned that Changan, China's restructuring of Hafei Automobile Changhe Automobile in the year, Hafei lost 470 million yuan, Changhe lost 220 million yuan.

In the first three quarters of last year, Hafei and Changhe were improved to varying degrees. Hafei lost 270 million yuan, and the loss of Changhe was 93 million 350 thousand yuan.

As of September 30, 2010, Hafei Motor's total assets amounted to 4 billion 100 million yuan, with a total liabilities of 6 billion 100 million yuan, operating income of 4 billion 300 million yuan in the first three quarters of 2010, 100 million yuan in operating net cash flow, 153 thousand vehicles in sales, 4 billion 600 million yuan in Changhe motor's total assets, 4 billion 600 million yuan in total liabilities, and 4 billion 300 million yuan in revenue in the first quarter of 2010, 670 million yuan in operating net cash flow, and 4 billion 600 million in vehicle sales.

According to the announcement, the Jiangxi Changhe bank borrowed 850 million yuan as of the day when the prospectus was signed, and Hafei Motor bank borrowings reached 3 billion yuan.

An automobile industry analyst in Shanghai said, "Hafei Automobile and Changhe motor itself do not have the ability of hematopoiesis (capital replenishment), and they certainly need the support of large shareholders."

China and Changan are optimistic about the financial situation of Hafei and Changhe. "Changhe motor company expects to achieve 6 billion 500 million yuan in 2011, and the sales scale will increase by 50 million yuan per month. According to the 75 days of the historical operation cycle, it is necessary to increase the working capital by 150 million yuan, considering the value added tax factor. Hafei Automobile is expected to achieve 8 billion 200 million yuan in 2011, and the sales scale will increase by 150 million yuan per month. According to the 77 days of the historical operation cycle, we need to increase the working capital by 450 million yuan in consideration of the added value tax."

In September last year, Xu Liuping, President of China's Changan, said in an interview that "recent data show that the two companies have improved and have made profits in some months.

However, the development cycle of automobile products is very long, and it takes nearly 3 years to turn around the whole. "

Expanding too fast and facing financial pressure

At the just concluded two sessions of the National People's Congress, the NPC deputies and mayor of Chongqing, Huang Qifan, put together a "thumping table" admonition. "I have a hunch that these auto companies will spend all the money they have accumulated over the past 20 years in 5 years, and will have all the bad debts in the future."

The object of Huang Qifan's reference is probably the rapid development of Changan automobile group in recent years.

Earlier, the media reported that Changan China's "aggressive" strategy has enormous financial pressure.

Public figures show that only in Shenzhen, Hefei, Hebei, Dingzhou and Beijing, Changan automobile investment amounted to 25 billion yuan.

In addition, according to the agreement, Changan group will invest 6 billion yuan in return in the next 5 years.

In this way, the Changan group has a total gap of about 31 billion yuan.

However, some industry analysts pointed out that "this algorithm of investment accumulation is not scientific. Enterprises can solve the source of funds through rolling development, but whether Changan's automobile profits can keep up with the huge investment demand is full of uncertainties. Changan is undoubtedly gambling."

The above prospectus disclosed that in the past two years, the ratio of current liabilities to total liabilities was around 90%. From 2007 to 2009, the ratio of current liabilities to total liabilities was 99.40%, 87.04% and 92.09% respectively, and 91.62% at the end of 2010.

The higher ratio of current liabilities constitutes a certain pressure on the issuer's debt repayment ability.

"When the company acquired Hafei Automobile and Changhe Automobile in 2009, the asset liability ratio rose from 61% at the end of 2008 to 76% at the end of 2009, and the asset liability ratio rose rapidly. In 2010, the asset liability ratio at the end of 9 was 74%, and the company was facing the risk of excessive debt repayment pressure."

The securities analysts said, "the stalls in Changan, China are too big to ignore assets profitability.

Changan started with a mini car, and its profit margin was limited. The high-end layout was understandable, but the layout of the national enclosure was too aggressive.