On March 1st, 2011, Xingma Motor announced that the company had obtained approval for the purchase of a 100% equity share of Valin Motors worth 1785.3315 million through a private placement, and the Hualing heavy truck was incorporated into the Xingma Automobile dust.
According to reports, as early as the end of November 2009, Xingma Automobile announced for the first time that it would issue 100% of the shares of Hualing Heavy Trucks held by nine shareholders, including the Anhui Xingma Automobile Group, through targeted distribution of shares. Before the announcement, the company suspended trading for about 40 days. After the resumption of trading, it received 5 daily limit, which was quite strong. This theme once became the most important support for Xingma Automobile's share price.
Since the announcement on July 20, 2010 that the matter has been accepted by the China Securities Regulatory Commission, there has been no further progress. The industry’s general expectation that the Hualing Heavy Trucks will be officially injected into listed companies during 2010 will be frustrated. After this pass, Xingma Automobile will issue 205 million shares to acquire 100% of the shares of Valin Motors, a company with which the company holds shares. After the determination of major acquisitions, the market paid high attention. Since March 1, 2011, Xingma Automobile has significantly increased its activity, and its active performance is among the top in the automotive sector.
According to the person in charge of Hualing Heavy Truck Guangdong, Valin Motors has always been one of the most profitable heavy truck companies in China. Since its official sales in 2005, the development speed has been significantly higher than that of the heavy truck industry. In the Guangdong market, sales of Hualing heavy trucks ranked first, with sales reaching 5,000 units in 2010, while Sinotruk sold about 3,000 units in the Guangdong market.
According to the statistics of the Automobile Industry Association, the current sales volume of Hualing Heavy Duty Trucks ranks eighth among domestic heavy truck companies. Its sales in 2010 increased by 67% year-on-year to 31,000 units, and its market share increased from 2.87% in 2009 to 3%.
In addition to Valin heavy truck products, Valin also produces chassis. Its heavy-duty automotive products developed on the basis of Japan's Mitsubishi technology platform are mainly targeted at dump trucks and special-purpose vehicles. It can match engines such as Weichai and Cummins.
Before the reorganization, the chassis of Xingma Automobile was provided by Valin for a long time. Xingma Automobile is the largest manufacturer of concrete mixers in China and currently produces more than 10,000 units a year, with a small amount exported to overseas markets.
The chassis of the vehicle accounts for about 70% of the cost of the special vehicle. Xingma Automobile purchases more than 70% of its chassis every year from Valin Auto. Through the integration of heavy truck resources, it is expected that the future profitability and profitability of the company will be greatly enhanced. In the past two years, the increase in the cost of steel products has caused the performance of listed companies to be diluted. After Valin Automobile's injection, it will become a wholly-owned subsidiary of Xingma Co., Ltd. Orders will be given priority, and procurement costs will also decline, which may have a great boost to the company's profitability.
In the past few years, due to the relatively narrow production of Xingma Automobile, the main vehicle market was dedicated to the special vehicle market, so the performance has been flat. After the reorganization of assets was completed, the related transaction problems that have long plagued the company could be solved, which would help the company further improve the industrial chain through refinancing. This is very beneficial to the recovery of the company’s financing platform, and it provides backing support for Valin Motor’s expansion and expansion through refinancing.
Based on the good market prospects, both Xingma Automobile and Hualing Motors are carrying out large-scale expansion. At the end of 2010, Valin Automotive's 100,000 capacity auto project has been launched. Allegedly, this new project is expected to be gradually put into operation in the second half of 2011. Will be able to solve the problem of bottlenecks that restrict the growth of the company's production capacity. According to its disclosure, currently there are only 5-6 dedicated car dealers in Guangdong, and Xingma competitiveness ranks in the front line. The number of Valin heavy truck dealers is about 60, in the terminal, in view of their different channels, will not be merged in the short term, but will increase efforts to build the network, Hualing heavy truck at the end of 2010 just in Shunde, Foshan, a new sales outlets .
However, there are also automotive industry analysts have concerns, in 2010 China's heavy trucks hit an annual sales record of millions of units, in the face of such a high base, whether the heavy truck industry in 2011 is still a high-speed growth yet to be discussed. In addition, some pessimistic commercial vehicle dealers believe that as the macroeconomic growth slows down, the demand for logistics vehicles and construction vehicles will also decline, while the prices of steel and other raw materials will rise sharply, and the intensified competition in the industry will inevitably lead to a decline in profitability. Both commercial vehicle and special vehicle companies will have a negative impact.
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