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  7. Hafei Automobile transfers 38%...

[YesAuto News] Hafei Automobile, once known as the “King of Microfaces”, has reached a turning point in its destiny. Recently, the official website of the Chongqing United Assets and Equity Exchange revealed that 38% of the shares (38,504,400 shares) of Hafei Automobile Co., Ltd. (“Hafei Automobile”) were publicly transferred, with a listing starting price of 1 yuan. The listing period starts on November 21 and ends on December 18, with a deposit of 300,000 yuan. After the transfer is completed, the new buyer will become the largest shareholder of Hafei Automobile, and now the largest shareholder Hafei Automobile Industry Group has retreated to the second largest shareholder.

It can be seen from the official website of the Heavy Exchange that Hafei Automobile had revenue of 269.25 million yuan in 2017, operating profit of -50.4 million yuan, and net profit of -43.39 million yuan. And its financial data at the end of October this year showed that Hafei Automobile had a revenue of 28.33 million yuan, an operating profit of -46.92 million yuan, and a net profit of -830,000 yuan. Although the starting price of the transfer starts at 1 yuan, the transferee must also bear the huge debt of Hafei Automobile and the unoptimistic situation in accordance with a 38% equity ratio. It is reported that Hafei Automobile has been frozen by the People’s Court because it defaulted on payment to many suppliers such as Harbin Dong’an Automobile Power Co., Ltd.; Hafei Automobile’s existing properties have also been sealed by the court; its patents have not been paid for years. The fee has also expired.

Public information shows that Hafei Automobile was established on March 24, 1994. As a representative of China's first-generation automobile brand, Hafei Automobile was in the 1990s. As of the end of 2008, Hafei Group has produced and sold 2.174 million vehicles of various types. Among them, 125,000 were exported, 3.525 million engines were produced and sold, and the products have been exported to more than 40 countries. In 2009, Hafei Group was placed under the Changan Group, but sales have gone from bad to worse. In 2015, Hafei Automobile sold only 38 vehicles.

In fact, behind Hafei Automobile’s decline from prosperity, it also shows the acceleration of the transformation of the domestic automobile market and the acceleration of consumption upgrades. We will continue to pay attention to whether Hafei Automobile can find a new starting point from this transfer.