Layout of new energy bus but sold battery company Futian car is difficult to reach 50 times the temptation

After selling the equity of the battery factory, does it mean that Futian Automobile, which has been laying out new energy business for many years, has given up its own production of batteries, and the relevant person of the company gave its own statement.

On July 29, the largest commercial vehicle company in China, Beiqi Foton Motor Co., Ltd. (hereinafter referred to as “Futian Automobile”, 600166.SH) announced that it intends to hold Beijing Pride New Energy Battery Technology Co., Ltd. ( The 10% stake in "Pride" is sold in full. If the transaction is completed, Foton Motor will receive considerable income: its initial investment is 10 million yuan, and the transaction price is 475 million yuan, which means that the transaction of Foton Motor will earn nearly 50. Double income.

Foton Motor has invested in the new energy business for many years. In 2004, it has built a new energy technology center. The company's new energy vehicle sales have also been gradually increasing. Under this circumstance, is it not advantageous for Foton Motor to produce its own battery or hold a battery company? Is it possible to sell the shares of the participating battery companies mainly because of the considerable income? For the realization of the self-produced battery, has Futian Automobile given up? On the above issues, the reporter sent an interview outline to Futian Automobile Securities Department and received a written response. Later, the reporter was invited by the Futian Automobile staff to go to the company office to discuss the reasons for selling the battery company.

The company claims that the battery is not that important

Foton Motor's office is located at Shayang Road, Shahe Town near Beijing's North Sixth Ring Road. Many buildings on both sides of the headquarters building are owned by Foton Motor. The extension of hundreds of meters is the Futian Automobile Boundary. Futian Automobile staff told reporters that there are more than 50 new energy buses to send employees back home every day.

With nearly 30,000 employees, Foton Motor is the largest commercial vehicle company in the country, but Foton Motor does not only produce commercial vehicles. Its products cover trucks, buses, passenger cars, etc. Its new energy business is mainly concentrated on passenger cars. Recently, one of the big things the company is experiencing is that the battery factory that sells shares will earn nearly 50 times.

On July 29, Foton Motor announced that it would sell the 16-year-old Pride shares, and the transaction target was the same as the listed company's Oriental Seiko. In this transaction, Oriental Seiko will pay 1,500 million yuan in cash to Foton Motor, and another 285 million yuan will be paid by Oriental Seiko with approximately 30.98 million shares of its own stock.

Only this 190 million yuan in cash has already accounted for 46% of Foton Motor's 2015 net profit. If the deal is completed, this income will also become an important source of profit for Foton Motor this year.

Why did Foton Motor sell its shares and instead hold the Oriental Seiko shares, which is mainly based on smart packaging equipment? After the Pride shares are no longer held, will Futian Automobile, which regards new energy as its key strategy, worry about weakening the competitiveness of its new energy business?

In the Futian Automobile Marketing Building, Futian Automobile related person told the "Investor News" reporter that the current mainstream view of the industry is that batteries are more important for electric vehicles than for conventional vehicles, but this does not mean that the whole vehicle company must Go to the production of power batteries in person. On the one hand, with the development of new energy vehicles, there have been many independent battery manufacturers with first-mover advantages and basic accumulation. The vehicle companies and their relationship are cooperative, not competitive. On the other hand, after the number of companies specializing in the production of batteries has gradually increased, vehicle manufacturers have more choices and bargaining space when purchasing power batteries.

For this problem, Foton Motor also replied in writing to this reporter: "The advantage of Foton Motor lies in vehicle integration and battery system integration technology and strong market integration capabilities, while battery development and production costs are large, and market competition Adequate, Futian Automobile has no advantage in entering the battery production industry. Therefore, Futian Automobile's strategic orientation is to regard the vehicle system, system component development capability and test and experimental capability as the core business direction of the new energy system."

More valued

Foton Motor, which sold shares in the participating battery companies, has been on the new energy business for a long time. As early as 2004, Foton Motor has built a new energy vehicle technology center. In the 2010 annual report, Foton Motor revealed that it has planned five key industries in the “Twelfth Five-Year Plan”. New energy is one of the five major industries, and the new energy industry includes power batteries and energy storage batteries. From January to July this year, its new energy vehicles produced a total of 3,822 vehicles, an increase of more than 300 vehicles over the same period last year. Its current new energy vehicles have brands such as Ou Hui, Ou Ma Ke, Oe Ling and Tu Yano.

It can be seen that Foton Motor has paid more attention to the new energy business for a long time. In addition, Foton Motor has long been a major customer of Pride. In the first three months of this year, Pride's sales revenue to Foton Motor accounted for 26% of its total revenue. Then, why should Foton Motor sell the shares of battery companies that have been working together for many years?

A staff member of the Office of the Secretary of the Futian Automobile told the Investor newspaper: "We participated in Pride in 2010, which is a financial investment behavior. Now the battery product is updated quickly and will come later. The faster. In this case, Foton Motor's choice of social resources to apply the market pricing principle to purchase batteries is currently the best strategy."

In fact, the most important reason for the sale of Pride shares may be because of "earning more." At the beginning, Foton Motor only invested 10 million in Pride, and now it has a 475 million yuan income after it has sold shares. In response, Foton Motor responded in writing to the "Investor News" reporter: "The proceeds from this sale are relatively high. Although we are optimistic about the future development of Pride, the investment income of nearly 50 times and the dividends of Pride's future performance. In comparison, it is clear that the former is better, and this transfer of shares does not affect the procurement business between Foton Motor and Pride."

Even if the battery factory's equity is sold, the staff of the aforementioned Futian Automobile Secretary-General Office said: "The sale of Pride's equity is a commercial activity, which is not related to whether we produce our own batteries. In addition, most of the domestic automobile mainstream enterprises have not built their own battery factories. Although most of our company is outsourcing batteries at present, it does not mean that we have abandoned the independent production of batteries. We actually have our own technical reserves."

The reporter noted that Futian Automobile also reminded investors in the announcement about the transaction: the matter must be submitted to the Futian Automobile Board of Directors and the shareholders meeting for review, and the public listing procedure of the Beijing Equity Exchange is still required. At the same time, the matter is regarded as Oriental Seiko. Part of the major asset restructuring must be reported to the China Securities Regulatory Commission and relevant authorities for approval.