The original main business of Qianfeng Co., Ltd. (600733.sh) was real estate development and sales. It has been losing money continuously for the past two years. Currently, it mainly sells stock garages.
In this asset restructuring plan, the company plans to place all of its assets and liabilities, replace them with the equivalent portion of the BAIC New Energy shares held by the BAIC Group, and issue shares to purchase all remaining shares. The overall valuation of BAIC New Energy is 28.8 billion yuan.
Shares were not publicly issued, supporting capital raised no more than 2 billion dollars, invested in the Beijing New Energy Innovation and Technology Center project, etc.
BAIC New Energy was founded in October 2009 with a registered capital of 100 million yuan. The company's early financing was mainly led by BAIC, with a cumulative investment of up to 2.1 billion dollars.
In 2016 and 2017, the company raised $3,072 million in Series A and $11.118 billion in Series B, respectively. Up to now, the company has raised 16.3 billion dollars.
The BAIC Group directly or indirectly controls 41.19% of the shares of BAIC New Energy and is the controlling shareholder of BAIC New Energy.
The Beijing Municipal State-owned Assets Administration Commission indirectly holds 100% of the shares of the BAIC Group and is the actual controller of BAIC New Energy.
Industrial cooperative shareholders include manufacturers of key components of electric vehicles such as batteries, motors, electronic controls, and charging piles.
Cooperation in the entire NEV industry chain can provide comprehensive solutions for the electrification of transmission systems
After deducting the fees of relevant intermediaries, all of the supporting funds raised by this share issuance were used for the Beijing New Energy Innovation and Technology Center project, the BAIC New Energy C35DB model project, the N60AB model project, and the N61AB model project.
In 2018, BAIC New Energy will launch four new models, including the compact sedan EU450, the compact SUV ET400, the pure electric sports car ARCFOX-7, and a crossover boutique.
Guided by customer demand, BAIC New Energy implemented the “large, medium, small” and “high, medium, and low” product strategies, and completed the new platform models EC180, EC200, LITE, and partner models such as the EV, EU, EX, and EH series.
The development and mass production of pure electric vehicle products covers A00 class, A0 class, A class, B class, etc., and the maximum range has exceeded 400 kilometers, achieving full market segment coverage.
In 2016, the company launched the ARCFOX high-end brand, becoming the first domestic enterprise to achieve a dual brand in the field of new energy.
Offline: Through the combined layout of 4S stores+secondary network+urban showrooms, a total of 165 first-level dealers and 83 second-level dealers were built in 139 cities.
Online: Online sales are carried out in cooperation with e-commerce companies such as JD, First Electric, Electric Bank, National Grid, and Gome Online.
BAIC New Energy has also established a direct sales model for major customers. In order to meet public sector needs such as taxis, rental cars, microbuses, express delivery vehicles, and timeshare leasing, BAIC New Energy adopted a direct sales model for major customers to strengthen communication and promote sales.
The current production capacity of BAIC New Energy in Beijing and Qingdao is expected to be around 150,000 units, and production capacity of 300,000 units is expected to be released by the end of next year. The current capacity utilization rate is 75%.
From 2015 to 2017, the company's sales doubled every year, and sold 100,000 units in 2017, reaching a new high.
In 2017, the company's A00 class EC180 became a hit, ranking first in the pure electric vehicle market in sales, accounting for 75% of the company's total sales volume. After the EC180 subsidy, the selling price was 498 to 55,800 yuan.
From January to October 2017, the average price of the company's bicycles was 81,600 yuan, a year-on-year decrease of 3.77%. However, the company's new products will drive ASP back on an upward trajectory next year.
Power batteries are the core component of new energy vehicles. From January to October 2017, the company purchased 2.6 billion yuan of power batteries, accounting for 41% of total operating costs.
The company currently has four major power battery suppliers. The share of Pryde (the main CATL battery pack vendor) is relatively stable, Funeng Technology's supply has grown rapidly, and Guoxuan Hi-Tech made breakthrough progress in 2017.
In 2016, the company achieved revenue of 9.372 billion yuan, an increase of 170% over the previous year. Revenue from January to October 2017 was 7.377 billion, which is expected to be reached by the full year of 2017
According to public information, vehicle sales were the main part of the company's revenue from January to October 2017, accounting for ~ 70% of the company's revenue. Furthermore, power modules account for 18%, and material sales account for about 9%.
State subsidies for new energy vehicles gradually declined from 2015 to 2017. In particular, in 2017, the year-on-year decline of national supply+land supplement was 40%. The company's gross margin reached a record high from January to October 2017, which basically absorbed the impact of the decline in subsidies.
In 2016, the company achieved a profit, with a net profit of 108 million. Judging from the profit level in 2017, the company's profitability is expected to continue to rise in the fourth quarter, and is expected to continue to grow in 2018.