On December 30, Gelonghui reported that Bohai Automotive Systems (600960.SH) announced that, affected by the ongoing Russia-Ukraine conflict and other external conditions, along with Germany's economic downturn, the automotive industry's development falling short of expectations, inflation, rising supply chain costs for Energy and labor, the company's German subsidiary BOHAI Trimet Automotive Holding GmbH (referred to as "BTAH") is experiencing operational losses and continued pressure. BTAH intends to make adjustments and streamline its workforce to reduce Operation costs, optimize cost structure, and improve the operational situation. To respond to the cost and expense pressures brought about by unfavorable market changes and to enhance overall Operation efficiency, and based on compliance with local German laws and regulations and protections of employees' rights, after extensive communication and negotiation, BTAH has reached a preliminary agreement with the employee committee on the employee layoff compensation plan. BTAH plans to terminate the labor relationship with approximately 152 employees (about 22% of BTAH's total formal employees) through the payment of severance compensation (the final number will be based on the actual number of employees who join the layoff plan and sign the agreement).
According to the negotiations between BTAH and the employee committee and the total number of employees planned for termination, the costs of severance compensation and other expenses for this layoff by BTAH are approximately 5.8 million euros (equivalent to about 44.71 million yuan). It is expected that the net income attributable to shareholders of the listed company will decrease by about 44.71 million yuan in 2024. The final severance compensation amount will need to be adjusted according to the actual number of employees who join this plan and sign the agreement. The final accounting treatment and the impact amount on the company will be based on the 2024 annual financial report issued after the audit by the company’s annual audit accountant.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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