Jing wei shares the setback to cross-border building cars have debt to invest in new energy vehicles

The acquisition of source can be traced back to 2016, when Beijing wei shares with 1.05 billion Yuan to buy a 35% stake in Jiangsu  the langkawi. In February this year, Beijing wei co, said the proposed for the rest of the 65% stake, Jiangsu , after the completion of the acquisition, Jiangsu  card will become a wholly owned subsidiary of Beijing wei shares, its fuel cars and new energy automobile production qualification will be received by jing wei co. Card according to the Jiangsu  province of the overall forecast, jing wei co need to pay about 3 billion Yuan.

Borrowing to invest in new energy vehicles jing wei share acquisition card failed again

Recently, the Beijing WKW Automotive Parts Co., Ltd. (hereinafter referred to as the "jing wei shares") in a statement, said the langkawi terminate the Jiangsu  province automobile industry group Co., Ltd. (hereinafter referred to as "Jiangsu  card") acquisition of the bill, the reason is "in terms of performance pledge, after repeated communication and consultation, both parties' failing to reach an agreement.

The acquisition of source can be traced back to 2016, when Beijing wei shares with 1.05 billion Yuan to buy a 35% stake in Jiangsu  the langkawi. In February this year, Beijing wei co, said the proposed for the rest of the 65% stake, Jiangsu , after the completion of the acquisition, Jiangsu  card will become a wholly owned subsidiary of Beijing wei shares, its fuel cars and new energy automobile production qualification will be received by jing wei co. Card according to the Jiangsu  province of the overall forecast, jing wei co need to pay about 3 billion Yuan.

Performance declining equity acquisition shall be terminated

In recent years, the outstanding auto parts suppliers jing wei, in its original main business - provide upscale passenger vehicle inside and outside decoration system, key functions, intelligent electronic integrated control system of the product of form a complete set research and development and related services, layout of new energy automotive business actively. Its intensive investment in the field of new energy vehicles, rough statistics, in the past three years, jing wei equity investments and the participation of as many as nine new energy automobile project, the total amount of investment is needed as high as 25.3 billion Yuan.

High investment, however, did not bring generous returns. On April 24, jing wei stake post losses in the first quarter, net profit loss of 27.0453 million (the same period last year, its profit more than $74 million), fell 136.34% from a year earlier, a negative cash flow of $8.36 million. This is jing wei co first-quarter loss for the first time in almost seven years. At the same time, according to jing wei co released 2017 annual report, its in Shenzhen Wuzhou dragon, Changchun new energy, Jiangsu  the langkawi loss of 197 million Yuan, 53.4232 million Yuan and 108 million Yuan respectively. This drag on Beijing shares in 2017 net profit is 317 million Yuan only, fell 50.16%.Three stock-sharing company loss-making, decrease jing wei equity earnings per share and the share price.

After March 29, the Shenzhen stock exchange small and medium-sized plate company management department issued information, we require Beijing Wuzhou shares of equity participation of Shenzhen, Jiangsu  dragon card wei in 2016 and 2017 for two consecutive years of losses, as well as the participation of Changchun new energy loss of 53.4232 million Yuan in 2017.Reply on April 19, jing wei shares, said losses due to the early stage of the new energy vehicles into larger, and the change of state subsidies, but for the three companies earnings remain optimistic about the future will bring equity investment.

Although in reply that "expectations" optimistic, jing wei shares still made a "stop loss" timely action -- it said on May 2, termination of the acquisition card in Jiangsu  gateway to the rest of the 65% stake.

The setback to cross-border building cars have new business development also need to be careful

In fact, Beijing wei co crossover building cars "ambition" is very obvious, even the big in the field of new energy vehicles. In 2017, Beijing wei co first plans to invest more than $8 billion in the German construction of new energy car factory; Then plans to invest 540 million Yuan, a joint venture with other company "ningbo jing wei Power battery Co., LTD. "production Titanium acid lithium battery And then, according to the announcement will cooperate with other companies, to build an annual output of 300000 vehicles in the Ningbo Fenghua area of clean energy vehicle production base, planning a total investment of about 17 billion Yuan. In Germany and Ningbo project under the condition of no big progress, jing wei co and announcement in March this year, prepared to invest in Qinhuangdao building an annual output of 300000 high-end new energy vehicle production base, the project planning a total investment of about 16 billion Yuan.

This project need money to support one by one, therefore, on April 3, jing wei share scheme through increased not more than $5 billion raised through issuance of shares, to raise the net all high-end electric car research and development production base project for Germany; Also plan to apply for registration of short-term financing bonds issued no more than 2 billion Yuan, raise or used to supplement the liquidity loan repayment.

But willy shares in Beijing to return on investment has not in the field of new energy vehicles, shareholders of its new energy automotive strategy is divided. For the financing, jing wei shares the first big shareholders voted in favor, while the second, three big shareholders voted against it, eventually financing scheme failed to pass.

Followed by April 17, Beijing shares announcement, the company's board of directors unanimously agreed to the transfer in Ningbo The battery Ningbo vehicle projects and project company equity, namely jing wei shares out of the new energy vehicles cooperation project of Ningbo.

It is understood that in 2015 Beijing shares began to foreign issuers, only 2017 new borrowing amount is 1.187 billion Yuan, 500 million Yuan including corporate bonds, bank loans of 337 million Yuan, other borrowing 350 million Yuan. In January 2018, jing wei shares and public company bonds does not exceed 2 billion Yuan, for new energy automotive industry investment, supplement working capital, to repay the bank loan and corporate bonds. And company at the beginning of the asset-liability ratio has been listed in 2012 from 7.7%, rising to 52.16% in 2017.

If to judge the success of for-profit, jing wei shares so far develop the field of new energy vehicles are failure.

In the new energy vehicles become the national and local key support industry, investors have been chosen from all walks of life a huge opportunity, in the field of cross-border investors such as became more. Passenger branch of China highway institute senior technology consultant PeiZhiHao said: "the high returns on capital are always to investors think flow. Investors may feel after a new energy vehicle production qualification, developed on the basis of the original might be."But in the rush production, in the tide of new energy vehicles, many enterprises have not be well prepared, neither on the new energy car itself to do in-depth research, also did not have enough knowledge of new energy automobile market.

Nearly two years of the new energy automobile market hot, but does this mean that the market demand is big enough? Investors often hundreds of thousands, millions of vehicles capacity, the market can digest? Maybe a lot of investors are not clear. Jing wei shares did not get a return on investment in the field of new energy vehicles, and ever since his overall performance is declining, which naturally than originally hoped for. The author thinks that, don't see a certain area of rich opportunities, blind investment. For cross-border investors into an oneself more unfamiliar territory, the risk is very big. Investors should be rational, cautiously to start a new business. Today, new energy vehicles in China investment boom gradually fading environment, concerns should return to industrial enterprises.

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