Does The "Textile King" Build Cars From Tianma Or Save "Shells"?

August 21, right China Hi-Tech Group Corporation It is destined to be an extraordinary day. Less than a month after spending 9.6 million euros to acquire GINAF, a Dutch heavy truck company, overseas, it will be in the pocket of Tianma Automobile in Baoding. Roughly calculated, there are nearly 10 automobile enterprises under Hengtian, including Shandong Kaima, Zhengzhou Hongda, Hebei Lida, Baoding Dadi, Hubei Xinchufeng, Jiangxi Bailujia, which does not include a large number of engineering machinery, agricultural machinery and engine manufacturing enterprises.

Some insiders believe that a huge automobile empire is looming, while others have reservations about the continuous acquisition of Hengtian, "Hengtian is more like a collector of automobile qualifications".

　 Plot Baoding

China Hengtian Group Co., Ltd. is a large state-owned enterprise group under the supervision of the State owned Assets Supervision and Administration Commission, with a registered capital of 2.759 billion yuan spin Mechanics , Textiles clothing And trade. It is no longer news that this Chinese textile giant, known as "the country's first comprehensive strength and the world's first business scale", has stepped into "automobile manufacturing". In May this year, I interviewed Zhang Jie, the chairman of Hengtian Group, who claimed that Hengtian would become "the second Toyota".

This acquisition of Tianma Automobile is Hengtian's second acquisition in Baoding. In November last year, Baoding Hengtian Automobile, a wholly-owned subsidiary of Hengtian Group, held Dadi Automobile in Dingxing County, Baoding. Like Tianma Automobile, Dadi mainly produces SUVs and pickups.

According to the data, Dadi Automobile, formerly known as Baoding Dadi Automobile Modification Factory, is a military automobile modification enterprise, with a production capacity of 110000 vehicles per year before being held. Its products are exported to more than 60 countries and regions, including Russia, the Middle East, Africa, Central America and Southeast Asia, and its product chain covers dozens of models such as pickups and SUVs.

Since Hengtian has acquired the qualification to produce SUVs and pickups through Dadi Automobile, why did it purchase Tianma again?

According to the reporter's investigation, similar to Dadi Automobile, the predecessor of Tianma Automobile is also a military automobile refitting plant. Although it covers an area of only 100 mu, Tianma has 260 sets of production and testing process equipment, including an assembly line for automobile chain plate type platform, a suspension type push-pull assembly line, a painting line, a welding line, and a stamping line, A modern automobile inspection line.

For these two similar acquisitions, some critics believe that Hengtian's positioning of its auto business is "China's pickup truck, SUV and parts production and research and development base", and the seemingly repeated acquisitions are actually large-scale.

However, some people doubt that if Hengtian wants to concentrate on making pickups and SUVs in Hebei, why should it go to Shandong to regenerate branches?

Kaima's "doubts"

In April 2008, Hengtian Group invested 187 million yuan to become the largest shareholder of Kaima. Since then, Kma began to turn losses into profits, and even in 2009, its net profit once increased by 450% year-on-year. After Kaima was gradually on the right track, in order to avoid the anti controlling shares of another shareholder, Shanghai Quanguan, Hengtian purchased 5.93% of Kaima's equity at a super high price of 2.4 yuan per share, and spent 152 million yuan to complete the final control of Kaima.

In order to acquire Kaima, Hengtian Group spent nearly 750 million yuan before and after. However, with the gradual cooling of the domestic automobile market, the performance of KAMA plummeted.

On August 8, 2012, KAMA issued a semi annual announcement that: in the first half of 2012, due to the sluggish demand of the commercial vehicle market, the sales volume of the company's trucks and diesel engine products declined. During the reporting period, the company realized an operating revenue of 2.963 billion yuan, a decrease of 10.05% over the same period of the previous year; The profit was 23 million yuan, down 76.89% year on year.

Not only Kaima, but also Dadi Automobile failed to improve after being acquired by Hengtian. The annual production capacity of Dadi, which was originally 110000 vehicles, was reduced to 50000 vehicles. The Tuteng T1 and T2, which were listed in April this year, were criticized by the industry as "the forgery of a third class automobile enterprise". Some people even said that "Tuteng T1 is basically the label changing version of the already listed Huanghai Auto Chaishen model, while Tuteng T2 is basically a copy of Huanghai Auto Aojun pickup".

"At least so far, there are still many ambiguous points in the car blueprint of Hengtian. Which is the core business of Hengtian, Kaima and Dadi, which are engaged in light truck and SUV and pickup truck respectively? The business of Kaima and Dadi has not improved yet, and they have spent a lot of money to eat into Tianma. Hengtian's current stall is growing, but the benefits of all fronts are not high." A person in the commercial vehicle industry told the reporter, "As far as the SUV and pickup projects in Hebei are concerned, although Baoding has good geographical advantages, it is also difficult for Hengtian's Dadi and Tianma to break through in front of the Great Wall and ZTE, two powerful local rivals."

Kaima Tianma is not the same thing

On August 24, with all kinds of questions, the reporter contacted Luo Li, the brand director of Hengtian Auto, who responded that "Shandong Kaima and Baoding Hengtian Auto are two relatively independent companies. Although both belong to Hengtian Group, Kaima's performance is not representative of Baoding Hengtian Auto."

"We started to contact Tianma Motors half a year ago, when the other party was basically in a state of production suspension." Luo Li said, "After the country introduced the exit mechanism for automobile production qualification, both parties decided to complete the acquisition in a short time, which is a good result for both parties."

According to his introduction, Tianma Auto and the previous Dadi Auto are mainly used as SUV production bases. In this way, the total production capacity of Hengtian in Baoding can reach 100000 vehicles.

With regard to the alleged plagiarism of the Tuteng pickup, Luo Li responded: "This is a model that focuses on the middle and low end. Among the middle and low end models, it is very common to imitate the appearance of other models, and many independent brands have done the same thing."

"The Great Wall is indeed a strong competitor, but we also have our own countermeasures. First, we praise high quality and good service in products, and strive to be the best in the industry in terms of service. Previously, when Hengtian Tuteng T1 and T2 were listed, it had made 40 thousand kilometers of zero maintenance costs for two years," Luo Li said confidently to reporters, "With the launch of T1 and T2, the number of domestic orders has exceeded 1000, and the number of overseas orders has also exceeded 6000. Hengtian MPV prototype vehicles have come out, which may be launched in the second half of the year."

If we talk about Kaima and Hebei's Dadi and Tianma, Luo Li has already told us that the numerous acquisitions of Hengtian in other places have become the final mystery.

A lot of questions

According to the reporter's investigation, Zhengzhou Hongda and Hubei Xinchufeng are special vehicle enterprises, Hebei Lida is special vehicle enterprises, and Jiangxi Bailujia is bus enterprises. In addition, there are a large number of engineering machinery, agricultural machinery and engine manufacturing enterprises under Hengtian. What will Hengtian do with these resources? Let them develop independently or brew a large-scale integration? Or, as the outside world speculates, Hengtian is accumulating "shell resources" in order to resell them in the future?

An industry expert said to the reporter: "Although the relevant national policies on the exit mechanism of automobile production qualification have been issued, the production and sales of 1000 passenger cars, 50 large and medium-sized buses, 100 light buses, 50 medium and heavy trucks, 500 light trucks, and 100 special transport vehicles within two years can be achieved with a little effort for an enterprise. There is still room for reverse buying and selling of shell resources Yes, there are. "

The person in the commercial vehicle industry mentioned above told the reporter: "It is really rare for Hengtian to purchase so many automobile production qualifications in a centralized way. Before Hengtian has clarified all business relationships, it is a normal speculation to be suspected of reselling qualifications."

Before the deadline, a source told our reporter that Hengtian never wanted to resell its qualifications, nor was it necessary. The biggest driving force for it to win so many enterprises is the SASAC. The SASAC hopes to promote the integration of the automobile industry and reduce the number of enterprises. The state-owned enterprise Hengtian with the will and strength to do this is almost the only choice.

During the interview, Luo Li told the reporter: "In the second half of this year or the first half of next year, there will be a big action of Hengtian Auto, but it is not convenient to disclose more now." Perhaps, various mysteries about Hengtian Auto can only be solved after the appearance of this "big action".