In 2011, a private company named Huatai Automobile Group Co., Ltd. appeared in the refinancing plans of Minsheng Bank (600016.SH, 1988.HK) and Bank of Beijing (601169.SH). Is it a coincidence?
Although it was overturned in the private placement of Minsheng Bank as much as RMB 21.5 billion, only a month or so later, this private enterprise with total assets of 12.5 billion yuan as of the end of 2010 will again come up with 3.5 billion yuan – equivalent to 28% of total assets. , 10 times last year's net profit - to invest in shares in Bank of Beijing, so generous, so that the outside world quite embarrassed.
However, these two investments with different successes and failures do not appear to have triggered much attention within the auto industry or even Huatai Automobile.
On April 12, many high-level Huatai autos interviewed by our reporter expressed unaware of this, including Gao Xiaoxu, vice president of investment in Huatai Automobile Group. When this reporter asked Gao if he was involved in and responsible for the two projects, Gao said that although the listed banks had already announced this, they were still in the confidentiality stage; Gao repeatedly stated, “I know nothing and cannot answer more. problem."
Zhang Xujiang, another vice president of Huatai Automobile Group, also stated that he was unaware of the company’s investment in people’s livelihood and Beijing Bank’s related issues.
Right now, for the Huatai Automobile Group, another high-level turbulence that originates from within the company is even more daunting. On April 12th, some media reported that following the decision of Liu Zhigang, president of Huatai Automobile, to leave the company, one of its Huatai executives, who belonged to the “Brilliance Departmentâ€, left the company. The latest confirmation is that Xu Chaoye, the deputy general manager of its sales company, has completed the separation process. Liu Zhigang, who is about to leave, is also the sixth president of the company in recent years.
On the one hand, the high-level turbulence frequently exposed by the outside world and the low-profile financial investment on the other side have caused the privately-owned auto group that was once considered by the outside world to attract commercial banks in the end.
Where does cash come from?
With 3.5 billion yuan in cash and a lock-up period of three years, can this private auto group accused of having no gold in the private placement plan increase its consumption?
On January 7, Minsheng Bank suddenly launched a refinancing plan and decided to use non-public issuance to issue no more than 4.7 billion new shares to specific targets. The total amount will not exceed RMB 21.5 billion. As one of the few newly introduced shareholders (the other is Jiangsu Rongsheng Investment), Huatai Automobile Group subscribed for 266 million shares, the first time it appeared in the tide of refinancing of listed banks.
If the original plan to develop the price of 4.57 yuan / share, Huatai Automobile 266 million shares need to come up with real gold and silver about 1.216 billion yuan; However, one month later, forced by practical considerations, Minsheng Bank decided to cancel the private placement program, A shares convertible bonds and additional H shares, Huatai Automobile reluctantly out.
However, for the first time, Huatai Automobile, which invests in investing in Minsheng Bank, seems to have more hidden feeling behind it. A person close to the refinancing program of Minsheng Bank once revealed to reporters that after the subscription plan was announced in January, two newly-incorporated shareholders, Rongsheng Investment and Huatai Automobile, were once forced to go out without gold, leading to another. Shi Yuzhu, the old shareholder of Shanghai Jiante Life Technology Co., Ltd., took over the 7.6 billion shares subscribed by the two companies.
However, it was this Huatai Automobile, which was accused of taking no money in the private placement plan, and then switched to Beijing Bank's arms one month later. This time it was more generous. The investment of 3.5 billion yuan was close to its planned investment in Minsheng Bank. Three times.
On April 9, Bank of Beijing announced a non-public offering plan of no more than RMB 11.8 billion, and started its first A-share market refinancing after its listing in 2007. The private placement price is RMB 10.88 per share, and the targeted issuance target is 10, as one of the newly introduced shareholders, Huatai Automobile scored nearly 30% of the additional share, the subscription amount of up to 3.5 billion, subscription shares of 3.2 billion shares, ranking first in the subscription agencies.
According to the "Share Purchase Agreement" signed by both parties, as the purchaser, Huatai Automobile shall subscribe for the total non-public offering of 3.5 billion yuan in cash in cash, and at the time of signing the agreement, it shall pay approximately 5% of the total subscription amount. Margin; In addition, as a strategic investor, there is a more stringent lock-in period rule, that is, no transfer within 36 months from the end of the non-public offering.
35 billion yuan in cash, lock-in period of three years, this has been reported that the shortage of funds of private automobile groups, can eat too much?
According to Huatai Motor's financial data for 2010 audited by Beijing Annrep, the total assets of Huatai Automobile was 12.52 billion yuan and shareholders' equity was 6.11 billion yuan. The cash investment of 3.5 billion yuan was equivalent to its total assets. Nearly 30%, 57.4% of shareholders' equity.
The data also shows that throughout 2010, the company’s operating income was 5.504 billion yuan, net profit was 350 million yuan, and this time 3.5 billion yuan was invested in Beijing Bank, which was equivalent to 10 times of 2010 net profit, and net profit in 2010 was only Slightly more than 330 million the previous year.
35 billion in cash, where does the money come from?
Two interpretations of Huatai's prospects
Why can Huatai Automobile enter the People's Bank of China and Beijing Bank to refinance?
In the view of these two banks, the strong financial strength and national brand image of Huatai Automobile is an important factor in attracting commercial banks.
Bank of Beijing Management stated that the new shareholders introduced in this non-public offering are all dominant companies in the industry and have strong capabilities. The management of Minsheng Bank also has a similar statement.
When introducing the main conditions of Huatai Automobile, Bank of Beijing states: “Huatai Automobile is a large-scale enterprise group focusing on automobile manufacturing, diversification, and multinational operations. It is mainly engaged in the research and development of complete vehicles, clean diesel engine and automatic transmissions. Production, sales, export, etc."
According to the disclosure of Bank of Beijing, Huatai Automobile has established Rongcheng Huatai Automobile Co., Ltd. and Erdos Huatai Automobile Industrial Park in Shandong and Inner Mongolia. It has an annual production capacity of 150,000 vehicles. In recent years, Huatai Automobile's vehicle products are mainly SUV models. From 2008 to 2010, Huatai Automobile's automobile production volume was 11,802 vehicles, 51,209 vehicles, and 8,1300 vehicles respectively. The vehicle sales were 15,261 vehicles, 50,875 vehicles, and 81,439 vehicles respectively. .
However, the view of senior observers in the automotive industry seems to be different from that of commercial banks.
For the departure of “Brilliance†executives, a veteran of the automotive industry believes that Zhang Xiugen, chairman of Huatai Automobile Group, had previously invited Liu Zhigang and other “Brilliance†executives to create their first launch. The mid- to high-end sedan B11, but the reality is much more difficult than expected, for private companies who advocate their own brand, to build a world-class high-end car brand is not a word.
Behind the resignation of senior executives, it may mean that the B11 strategy is facing setbacks, and it also reflects the development prospects of this family-owned private auto giant that seems to be difficult to be viewed.
According to public information, Huatai Automobile was the predecessor of Shandong Rongcheng Automobile Refining Plant in 1991. In July 2000, Zhang Xiugen, chairman of Baotou Hengtong Group, which started with the construction industry, took over from FAW, succeeded in entering Huatai, and then opened for ten years. Zhang Xigen era. Currently, Zhang Honggen’s son, Zhang Hongliang, holds a 60% stake in Huatai Automobile Group with a registered capital of only RMB 300 million.
Under the background that the main automobile business is not favored and corporate governance has not been rationalized, is Huatai Automobile's investment in the financial industry undergoing an active transformation?
The mystery of funding channels
In fact, this private auto group is beginning to seek an active transition, and there may be no other way to invest in Beijing Bank’s 3.5 billion source of funding.
A person close to Huatai Automobile stated to this newspaper that Huatai Automobile’s largest source of funding does not come from its main business, but the mining rights of the two major coal mines in Ordos.
This matter goes back to 2006, the coal capital of Ordos highly dependent on "terrestrial (rare earth), gas (natural gas), sheep (wool), coal (coal)" resource economic structure in the macroeconomic rapid advance, trying to transform, its transformation One of the solutions is to invest in resources and invest in the manufacturing industries such as automobiles.
Zhang Xiugen as Baotou first caught this opportunity. In 2006, Huatai Automobile's engine and transmission project officially settled in the Erboshi Kangbashi Development Zone. Huatai Motors has therefore obtained two coal mining rights worth more than 1 billion yuan from Ordos.
It has been calculated that if 100 million tons of coal can be used to obtain 75 million tons of coal at a recovery rate of 75%, the value of mineral resources will reach 15 billion yuan, based on the current pit price of 200 yuan.
For 3.5 billion sources of funds, as of press time this reporter has not yet obtained exact information. However, the above-mentioned automotive industry veterans stated that the major cash flow of Huatai Automobile depends on the existing model, that is, relying on cooperation with local governments to exchange resources for investment. “Now it is hard for the auto business to make money, and the B11 project The current profitability is very difficult."
The investment and finance industry obviously can bring better benefits to it. Bank of Beijing is currently growing quite well. CICC believes that after this financing of 11.8 billion, by the end of 2011, the bank’s core capital adequacy ratio and capital adequacy ratio will be expected to increase by 2.35 percentage points to 12% and 15.1%, which is enough to support business development in the next three years.
Bank of Beijing stakeholders also stated that this non-public issuance plan has been reviewed and approved at the sixth meeting of the fourth session of the Board of Directors of the company and is still subject to review and approval at the 2010 annual general meeting of shareholders, and is reported to the China Banking Regulatory Commission, China Securities Regulatory Commission and other regulatory agencies for approval or approval.
Although it was overturned in the private placement of Minsheng Bank as much as RMB 21.5 billion, only a month or so later, this private enterprise with total assets of 12.5 billion yuan as of the end of 2010 will again come up with 3.5 billion yuan – equivalent to 28% of total assets. , 10 times last year's net profit - to invest in shares in Bank of Beijing, so generous, so that the outside world quite embarrassed.
However, these two investments with different successes and failures do not appear to have triggered much attention within the auto industry or even Huatai Automobile.
On April 12, many high-level Huatai autos interviewed by our reporter expressed unaware of this, including Gao Xiaoxu, vice president of investment in Huatai Automobile Group. When this reporter asked Gao if he was involved in and responsible for the two projects, Gao said that although the listed banks had already announced this, they were still in the confidentiality stage; Gao repeatedly stated, “I know nothing and cannot answer more. problem."
Zhang Xujiang, another vice president of Huatai Automobile Group, also stated that he was unaware of the company’s investment in people’s livelihood and Beijing Bank’s related issues.
Right now, for the Huatai Automobile Group, another high-level turbulence that originates from within the company is even more daunting. On April 12th, some media reported that following the decision of Liu Zhigang, president of Huatai Automobile, to leave the company, one of its Huatai executives, who belonged to the “Brilliance Departmentâ€, left the company. The latest confirmation is that Xu Chaoye, the deputy general manager of its sales company, has completed the separation process. Liu Zhigang, who is about to leave, is also the sixth president of the company in recent years.
On the one hand, the high-level turbulence frequently exposed by the outside world and the low-profile financial investment on the other side have caused the privately-owned auto group that was once considered by the outside world to attract commercial banks in the end.
Where does cash come from?
With 3.5 billion yuan in cash and a lock-up period of three years, can this private auto group accused of having no gold in the private placement plan increase its consumption?
On January 7, Minsheng Bank suddenly launched a refinancing plan and decided to use non-public issuance to issue no more than 4.7 billion new shares to specific targets. The total amount will not exceed RMB 21.5 billion. As one of the few newly introduced shareholders (the other is Jiangsu Rongsheng Investment), Huatai Automobile Group subscribed for 266 million shares, the first time it appeared in the tide of refinancing of listed banks.
If the original plan to develop the price of 4.57 yuan / share, Huatai Automobile 266 million shares need to come up with real gold and silver about 1.216 billion yuan; However, one month later, forced by practical considerations, Minsheng Bank decided to cancel the private placement program, A shares convertible bonds and additional H shares, Huatai Automobile reluctantly out.
However, for the first time, Huatai Automobile, which invests in investing in Minsheng Bank, seems to have more hidden feeling behind it. A person close to the refinancing program of Minsheng Bank once revealed to reporters that after the subscription plan was announced in January, two newly-incorporated shareholders, Rongsheng Investment and Huatai Automobile, were once forced to go out without gold, leading to another. Shi Yuzhu, the old shareholder of Shanghai Jiante Life Technology Co., Ltd., took over the 7.6 billion shares subscribed by the two companies.
However, it was this Huatai Automobile, which was accused of taking no money in the private placement plan, and then switched to Beijing Bank's arms one month later. This time it was more generous. The investment of 3.5 billion yuan was close to its planned investment in Minsheng Bank. Three times.
On April 9, Bank of Beijing announced a non-public offering plan of no more than RMB 11.8 billion, and started its first A-share market refinancing after its listing in 2007. The private placement price is RMB 10.88 per share, and the targeted issuance target is 10, as one of the newly introduced shareholders, Huatai Automobile scored nearly 30% of the additional share, the subscription amount of up to 3.5 billion, subscription shares of 3.2 billion shares, ranking first in the subscription agencies.
According to the "Share Purchase Agreement" signed by both parties, as the purchaser, Huatai Automobile shall subscribe for the total non-public offering of 3.5 billion yuan in cash in cash, and at the time of signing the agreement, it shall pay approximately 5% of the total subscription amount. Margin; In addition, as a strategic investor, there is a more stringent lock-in period rule, that is, no transfer within 36 months from the end of the non-public offering.
35 billion yuan in cash, lock-in period of three years, this has been reported that the shortage of funds of private automobile groups, can eat too much?
According to Huatai Motor's financial data for 2010 audited by Beijing Annrep, the total assets of Huatai Automobile was 12.52 billion yuan and shareholders' equity was 6.11 billion yuan. The cash investment of 3.5 billion yuan was equivalent to its total assets. Nearly 30%, 57.4% of shareholders' equity.
The data also shows that throughout 2010, the company’s operating income was 5.504 billion yuan, net profit was 350 million yuan, and this time 3.5 billion yuan was invested in Beijing Bank, which was equivalent to 10 times of 2010 net profit, and net profit in 2010 was only Slightly more than 330 million the previous year.
35 billion in cash, where does the money come from?
Two interpretations of Huatai's prospects
Why can Huatai Automobile enter the People's Bank of China and Beijing Bank to refinance?
In the view of these two banks, the strong financial strength and national brand image of Huatai Automobile is an important factor in attracting commercial banks.
Bank of Beijing Management stated that the new shareholders introduced in this non-public offering are all dominant companies in the industry and have strong capabilities. The management of Minsheng Bank also has a similar statement.
When introducing the main conditions of Huatai Automobile, Bank of Beijing states: “Huatai Automobile is a large-scale enterprise group focusing on automobile manufacturing, diversification, and multinational operations. It is mainly engaged in the research and development of complete vehicles, clean diesel engine and automatic transmissions. Production, sales, export, etc."
According to the disclosure of Bank of Beijing, Huatai Automobile has established Rongcheng Huatai Automobile Co., Ltd. and Erdos Huatai Automobile Industrial Park in Shandong and Inner Mongolia. It has an annual production capacity of 150,000 vehicles. In recent years, Huatai Automobile's vehicle products are mainly SUV models. From 2008 to 2010, Huatai Automobile's automobile production volume was 11,802 vehicles, 51,209 vehicles, and 8,1300 vehicles respectively. The vehicle sales were 15,261 vehicles, 50,875 vehicles, and 81,439 vehicles respectively. .
However, the view of senior observers in the automotive industry seems to be different from that of commercial banks.
For the departure of “Brilliance†executives, a veteran of the automotive industry believes that Zhang Xiugen, chairman of Huatai Automobile Group, had previously invited Liu Zhigang and other “Brilliance†executives to create their first launch. The mid- to high-end sedan B11, but the reality is much more difficult than expected, for private companies who advocate their own brand, to build a world-class high-end car brand is not a word.
Behind the resignation of senior executives, it may mean that the B11 strategy is facing setbacks, and it also reflects the development prospects of this family-owned private auto giant that seems to be difficult to be viewed.
According to public information, Huatai Automobile was the predecessor of Shandong Rongcheng Automobile Refining Plant in 1991. In July 2000, Zhang Xiugen, chairman of Baotou Hengtong Group, which started with the construction industry, took over from FAW, succeeded in entering Huatai, and then opened for ten years. Zhang Xigen era. Currently, Zhang Honggen’s son, Zhang Hongliang, holds a 60% stake in Huatai Automobile Group with a registered capital of only RMB 300 million.
Under the background that the main automobile business is not favored and corporate governance has not been rationalized, is Huatai Automobile's investment in the financial industry undergoing an active transformation?
The mystery of funding channels
In fact, this private auto group is beginning to seek an active transition, and there may be no other way to invest in Beijing Bank’s 3.5 billion source of funding.
A person close to Huatai Automobile stated to this newspaper that Huatai Automobile’s largest source of funding does not come from its main business, but the mining rights of the two major coal mines in Ordos.
This matter goes back to 2006, the coal capital of Ordos highly dependent on "terrestrial (rare earth), gas (natural gas), sheep (wool), coal (coal)" resource economic structure in the macroeconomic rapid advance, trying to transform, its transformation One of the solutions is to invest in resources and invest in the manufacturing industries such as automobiles.
Zhang Xiugen as Baotou first caught this opportunity. In 2006, Huatai Automobile's engine and transmission project officially settled in the Erboshi Kangbashi Development Zone. Huatai Motors has therefore obtained two coal mining rights worth more than 1 billion yuan from Ordos.
It has been calculated that if 100 million tons of coal can be used to obtain 75 million tons of coal at a recovery rate of 75%, the value of mineral resources will reach 15 billion yuan, based on the current pit price of 200 yuan.
For 3.5 billion sources of funds, as of press time this reporter has not yet obtained exact information. However, the above-mentioned automotive industry veterans stated that the major cash flow of Huatai Automobile depends on the existing model, that is, relying on cooperation with local governments to exchange resources for investment. “Now it is hard for the auto business to make money, and the B11 project The current profitability is very difficult."
The investment and finance industry obviously can bring better benefits to it. Bank of Beijing is currently growing quite well. CICC believes that after this financing of 11.8 billion, by the end of 2011, the bank’s core capital adequacy ratio and capital adequacy ratio will be expected to increase by 2.35 percentage points to 12% and 15.1%, which is enough to support business development in the next three years.
Bank of Beijing stakeholders also stated that this non-public issuance plan has been reviewed and approved at the sixth meeting of the fourth session of the Board of Directors of the company and is still subject to review and approval at the 2010 annual general meeting of shareholders, and is reported to the China Banking Regulatory Commission, China Securities Regulatory Commission and other regulatory agencies for approval or approval.
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