The government is advancing

For external concerns and Chery reorganization, Jianghuai Automobile senior officials and investment agencies to communicate frankly, the Anhui Provincial Government is certainly doing this thing, but the reorganization plan has not yet been reported; JAC can not predict the future or not, because it is a government act; Jianghuai is active in this matter. This is not only beneficial to Anhui enterprises but also to self-owned brands. It is mainly united and reorganization is the means. Market capitalization is the mode of operation.

The reason for this rumors also dates back to May of this year when the Anhui Provincial Government announced the "Regulations for the Adjustment and Revitalization of the Anhui Automobile Industry", which pushes Chery, Jianghuai, Hualing, Changhe, Yangzi, Quanchai and other auto companies. The market principle is to carry out joint reorganization in the province and strive to form an auto enterprise group with a production capacity of more than one million vehicles, and enter the country’s key support for the "Four Big Four and Small" ranks. Because JAC and Chery have business complementarity, the combined production capacity can reach 100%. The reason for the 10,000 vehicles has caused all sorts of conjectures about the reorganization between the two. However, the clarification announcement issued by JAC later stated that since the company and the controlling shareholder are state-owned holding companies and cannot predict whether reorganization will take place in the next three months, this imaginative announcement has not dispelled the conjecture of the restructuring of JAC and Chery outside. .

Affected by the news of the reorganization of Jianghuai and Chery, Jianghuai Automobile has recently changed its momentum and is gaining momentum. Even on the 8th day when the broader market plunged, Jianghuai Automobile also rose 6.35%.

What is worth remembering is that after June 2003, Jianghuai Automobile announced the “clear and unclear” announcement, Chery Huarong Asset Management Co., Ltd., Bohai Industrial Investment Fund Management Co., Ltd., and Shenzhen Zhongke Investment Promotion Co., Ltd. The company, Rongde Asset Management Co., Ltd. and CDH Equity Investment Management (Tianjin) Co., Ltd. sold 20% of their shares and obtained 2 billion yuan in cash. Some analysis pointed out that Chery’s transfer of this premium, on the one hand, increased the possibility of its listing through the operation of a professional company; and even if the IPO fails, through premium transfer, it can directly increase its net assets per share, with the Jianghuai’s Restructuring takes up a more favorable position.

Passenger car profits

Jianghuai Automobile received major financial attention, and in addition to restructuring its business, its own performance is also improving. “Last year, cars and engines consumed a large amount of company's resources; PPI was very high and the original product's gross profit margin decreased. Overall, Jianghuai's business was difficult in 06-08, but 08 was the bottom, and it has changed a lot since 2009.” Zuo Yanan, chairman of Jianghuai Automobile, said in an exchange with brokers and fund companies.

The sedan with a drag on Jianghuai’s performance “has to be better than a quarter in a quarter, and it is ultimately necessary to achieve a positive margin. In the first half of 2009, the passenger vehicles (including Ruifeng and Ruiying) were overall profitable.” Zuo Yan’an stated that “the company wants to be a company. The main business of the future."

"The 100,000 cars will surely break even. If the gross profit margin for cars reaching around 60,000 units is still very low, 100,000 units will have a 5% or so gross margin, and they will be higher than light trucks, with 12-15% being a reasonable level." High-level officials said at the exchange meeting. Statistics show that in the first five months of this year, JAC had a total of 22,400 cars sold, an increase of 355.28% year-on-year. It is one of the growing sedan companies. Sales volume is rapidly approaching the break-even point. Jianghuai Automobile expects sales of passenger car segments to exceed 100,000 this year. This year, the Jianghuai passenger car series including Ruifeng and Ruiying have sold over 10,000 consecutive months.

The profitability of the JAC light trucks has recovered significantly. The gross profit margin of Ruifeng Commercial Vehicles has remained at a relatively high level, and the sedan project is undergoing a process of growth from sales volume growth to profitability. It is expected that the sedan project in 2009 is expected to significantly reduce losses in 2010. It is expected to achieve a break-even. Taken together, the second half of 08 is the most difficult period for the company's operations. It is expected that the profitability of the company will reverse in the second quarter of 2009, and it is more likely to turn losses in the mid-2009 report.

When the first quarter results report was released this year, Jianghuai Automobile's net profit for the period from January to June this year will fall by more than 50% compared with the same period of last year, mainly because the company's car business is in the lead-in period and has not yet produced scale benefits. In the early stage of the introduction of the sedan, the JAC mainly relied on light trucks, Ruifeng and Ruiying to make up for the loss of the sedan.