[YesAuto News] Xiaokang shares are undergoing equity restructuring of listed companies. On November 18, Xiaokang shares announced that it plans to acquire a 50% stake in Dongfeng Xiaokang held by Dongfeng Motor at a price of 4.83 billion yuan, and complete 100% holding of Dongfeng Xiaokang. At the same time, Dongfeng Motor acquired the above 4.83 billion yuan at an issue price of 14.54 yuan per share to purchase 330 million shares of Xiaokang shares, becoming the second largest shareholder of Xiaokang shares, with a shareholding ratio of 26.01%.
Dongfeng Xiaokang was established in June 2003 and was jointly established by Dongfeng Motor, Dongfeng Industrial and Yu'an Group. In November 2010, Yu'an Group transferred its 50% equity of Dongfeng Xiaokang to Xiaokang, and Dongfeng Industrial transferred its 30% equity of Dongfeng Xiaokang to Dongfeng Motor. So far, Xiaokang shares and Dongfeng Motor each hold 50% of Dongfeng Xiaokang shares.
Before the transaction, Xiaokang Holdings directly held more than 50% of the shares of Xiaokang shares and was the controlling shareholder. Zhang Xinghai, chairman of Xiaokang Holdings, holds 50% of the shares of the controlling shareholder, Xiaokang Holdings, and is the controlling shareholder of Xiaokang Holdings. He indirectly controls more than 60% of the voting rights of listed companies through Xiaokang Holdings and Yu'an Industrial. He is the actual controller of Xiaokang Holdings. After the completion of the transaction, Zhang Xinghai, through Xiaokang Holdings and Yu'an Industrial, still indirectly controls more than 50% of the voting rights of Xiaokang Co., Ltd., and is the actual controller.
Xiaokang shares stated that the main business of Dongfeng Xiaokang is the development, production and sales of Dongfeng brand multi-purpose passenger vehicles, minivans and minibus series products and auto parts. After the completion of this transaction, Dongfeng Motor Group will become a strategic investor in Xiaokang shares, which is conducive to the combination of dominant companies and builds a leading enterprise.
In April 2017, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology jointly issued the “Medium and Long-term Development Plan for the Automobile Industry”, which clearly stated that “support for enterprise-led domestic and foreign orderly reorganization and integration, corporate mergers and acquisitions, and strategic cooperation , Encourage the international development of enterprises. Encourage cooperation modes in the automotive industry chain and across industries such as capital, technology, production capacity, and brands, and support advantageous companies to join forces through mutual shareholding, strategic alliances, etc., to continuously increase industrial concentration.”
Xiaokang shares stated that Dongfeng Motor’s becoming a strategic investor in Xiaokang shares shows that Dongfeng Motor recognizes Xiaokang’s deployment in the field of automotive intelligent electric vehicles, and the two parties will continue to cooperate in this field in the future. At the same time, after Dongfeng Xiaokang becomes a wholly-owned subsidiary of Xiaokang, its business operations will also become more independent.
Xiaokang Automobile is deepening its layout in the automotive field. In addition to Dongfeng Xiaokang, Xiaokang has also established two initial car companies, namely SF MOTORS and Jinkang New Energy. At the end of March this year, SF MOTORS officially debuted in Silicon Valley, USA, and released two electric SUV concept models, SF7 and SF5. On July 25, SF MOTORS officially released its new brand Chinese name “Golden Fruit EV” in China.
On September 17, Jinkang New Energy entered the 312th batch of “Announcement on Road Motor Vehicle Manufacturers and Products” and officially obtained the qualification for vehicle manufacturing. According to Xiaokang shares, it is expected that the first smart electric SUV model will be booked and delivered in 2019.