Chen Xiao looked at the audit report on Haima Automobile handed over by Shen Wei.
This part involves assets and liabilities related to automobile production plants and vehicles in inventory.
Haima Auto's audit report is indeed very ugly, with serious losses and too many decision-making errors.
The most important thing is of course his losses in the past two years.
From 2016 to 2017, Haima Automobile suffered a total loss of 1.5 billion RMB.
This level of loss is very terrifying.
And most of the losses came from 2017.
The reason for Haima's losses was, of course, his lack of sensitivity to the market.
The most important model in the rise of domestically produced cars is SUV.
For example, Great Wall Haval Motors is the leader among them.
Haima also identified this critical period and launched its own compact car SUV Haima S5.
The price of Haima S5 is more than 60,000 to a little more than 100,000.
Compared with the joint venture SUV that starts at RMB 100,000 or RMB 200,000, it is indeed much cheaper, directly bringing the price of the SUV to less than RMB 100,000.
Therefore, when the Haima S5 was first launched, it was indeed welcomed by users and the sales volume was very impressive.
Many users still equate Haima Automobile with the original Hainan Mazda.
I think the Haima S5 is a rebranded domestic Mazda CX3 or CX5.
The Mazda cx3 costs 100,000 and the cx5 costs more than 200,000.
In comparison, Haima S5 is definitely much more cost-effective.
But these users don't know that Haima Automobile and Hainan Mazda have absolutely no relationship, and their technologies are completely different.
Of course Haima Auto also knows that many users compare their cars with Mazda cars or even consider them as substitutes for Mazda cars.
However, Haima's top management saw through it without saying anything, and intentionally or unintentionally used this kind of mock publicity to build momentum for themselves.
This is the fundamental reason why Haima S5 sales were relatively good when it was first launched.
And Haima’s senior headquarters also mispredicted the future development of S5.
Therefore, they are crazy about expanding production and capacity according to the sales volume and growth rate in 2016. They are preparing to make a turnaround in 2017, pay off all their loans and liabilities in the past few years, and take advantage of the trend to launch the third version of S5 in 2018.
Second generation.
But Haima can do this, and many domestic products can actually do this as well.
When a large number of domestic urban SUVs are produced, the price drops to less than 100,000, and many consumers realize that Haima Motors and Mazda Motors are basically two companies.
Sales of the S5 plummeted immediately.
Currently, Haima Auto's major warehouses have a large number of cars in stock.
There are more than 60,000 S5 units.
There are two factories involved in the S5, with a daily production capacity of 500 vehicles.
In addition to the S5, there is also the S5 and S7, which are higher level, with more than 20,000 units in stock.
Of course, Haima also has a variety of other chaotic models, with an inventory of more than 30,000 vehicles.
There are many factories and production lines involved, and it is very messy.
In fact, this year, Haima Automobile is already in a very embarrassing situation.
The production line is completely based on sales.
If the S5 can no longer be sold, then production of the S5 will be stopped and other models will be produced.
Or seeing that the sales of a certain model of other brands are relatively good, Haima Design quickly adjusted the design and designed a similar model after the other brand's model, hoping to take a bite.
It is precisely because of this that Haima Automobile's design and production lines are very messy.
We design and produce whatever model we feel is good, but once it is produced, it cannot be sold.
This has led to the high production costs of many Haima models.
Later, Haima's capital chain was directly broken, and Nanhai Province was unwilling to continue investing money.
So in the end we're left with a mess.
Chen Xiao nodded repeatedly and said: "Shen Wei, your team's audit report is very detailed."
"I read the audit recommendations. You hope to strip off the inventory of cars as liabilities and those production lines that cannot be improved or where the cost of improvement is very high is also stripped out as liabilities."
Shen Wei said: "Yes, after detailed evaluation and accounting, we gave such a suggestion. We hope that we can accept a Haima company that is traveling lightly."
Chen Xiao said: "Your method is very feasible, but I think it can completely turn waste into treasure, and you can also test the feedback from the mid- to low-end market."
"What do you mean?" Shen Wei was a little confused, "The amount involved in this part is more than 10 billion."
"And according to our acquisition agreement, we can technically invest in fixed assets, etc., but for these inventories, if they are stripped off as liabilities, we do not need to manage them. If they are regarded as assets, we will have to spend 55% of the production cost to acquire them. "
Even if it is to acquire these stocks at a price of 55%.
Then Changtian Technology will spend at least hundreds of billions of RMB.
So Shen Wei said: "I don't think we need to spend these funds."
The transaction between Changtian Technology and Haima Automobile would be inherently unfair if it does not focus on the future but only on the transaction itself.
Haima Company sacrificed a lot and lost a lot of assets in order to obtain Changtian Technology's plan and protection for its future.
Changtian Technology will definitely have an absolute advantage in the negotiations.
Therefore, Changtian Technology has the right to make this acquisition more beneficial to itself.
As Shen Wei said, there is no need to spend money to buy some stock cars.
The reason why these cars are in stock is because they have been tested by the market and consumers do not approve of them.
Changtian Technology spent 55% of the total value to acquire these inventory cars. What should be done with them?
Sell it at a low price?
If that's the case, it's better to just don't want it.
After all, if you sell it at a low price, you may not be able to get your money back.
Chen Xiao nodded and said: "Your suggestion is very reasonable, so we are not acquiring all the vehicles in stock of Haima Motors."
"We only acquire the Haima S5, its classic model with the largest inventory."
"We can make money by acquiring this part of the vehicles."
Because it is a model priced at around RMB 100,000, it is even more difficult to sell a car with a manual transmission among the configurations of a car priced under RMB 100,000.
Judging from Shen Wei’s audit report.
Of this batch of 60,000 cars, 70% are automatic transmissions and 30% are manual transmissions. The average sales price is 82,000 yuan.
The production cost of Haima Automobile is higher than that of its peers, accounting for about 50% of the sales price.
So the average cost is 41,000 yuan.
60,000 cars, with a total production cost of 2.4 billion RMB.
Changtian Technology will acquire these inventories at a price of 55% of the total cost, which will cost 1.32 billion.
Chen Xiao said: "I plan to add a small bio-battery and a small motor to this part of the car to make it a gasoline-electric hybrid car."
"The bio-battery and motor are just auxiliary functions. Their purpose is to let mid- to low-end users experience the advantages of new energy vehicles."
"I think through such modification, users can accept it."
"You can buy a bionew energy vehicle for more than 100,000 yuan. Although the battery capacity will be smaller and the power of the motor will be smaller, driving such a car in cities or rural areas will allow users to save costs greatly.
I believe that the inventory of 60,000 vehicles can be completely cleared."
Chen Xiao smiled and said to Shen Wei: "And our average acquisition cost is 41,000 yuan. I consulted the relevant technical personnel of Cangqiong Automobile to add a small microbial battery and motor to these cars so that the motor and fuel engine can be connected in parallel.
As for the power system, the modification cost is about 40,000 yuan."
"Since then, our average production cost has been 81,000. Even if we sell this car for 100,000 or 110,000, we will still make a profit."
"What's more, our purpose of doing this is not to make money, but to explore the market and allow users to experience our new products."
Chen Xiao added: "Although we have negotiated a cooperation with Haima Company, we are at an absolute advantage during the entire negotiation, but we cannot let Haima Company suffer too much."
"Technical investment is part of it. Acquiring part of their inventory at a more suitable price and giving some cash to the original shareholders will also help them fill the holes in the past as soon as possible and invest in new work."
"Everything you do should be humane and leave room for others."
"For domestic partners, every profit is eaten. This is not what Changtian Technology does."
"We have forced the current team of Haima Company into a panic. Although they will compromise and cooperate with us for their own future, they must have grudges in their hearts."
"When the time comes, there will most likely be some unpleasant aspects of cooperation. There is no need to give up the overall situation for these petty gains."
After saying this, Chen Xiao handed the audit report to Shen Wei: "Just do it the way I said."
Shen Wei felt suddenly enlightened after hearing Chen Xiao's words.
Chen Xiao's perspective is completely different from his own.
Chen Xiao considers the overall situation and the future of Changtian Technology’s development.
But Shen Wei only considered it from the perspective of the company's internal control, and only from the project or financial level to prevent the company from suffering losses.
Sometimes short-term losses are for the sake of greater profits.
In Nanhai Province, Haima's original shareholders and senior executives are anxiously waiting for Changtian Technology's final plan.
When they got Changtian Technology's plan, everyone was shocked.
Because the worst-case scenario considered by Jing Mu is to divest all of the cars in stock, including these, as liabilities.
Unexpectedly, Changtian Technology actually bought all the Haima S5 series cars.
Although the purchase price is only 55% of the production cost.
But after all, it will reduce Haima Company's losses.
If all S5s are handed over to Haima Company and Haima Company discounts them, it may not be easy to sell them.
Moreover, discounting one's main models will do great damage to the company's image.
Generally speaking, companies that are not going bankrupt will simply not do this.
The most important thing is that Jing Mu and others also know that Chen Xiao plans to improve the S5 series models with new bioenergy and sell them after the improvements.
If all the profits from the cars sold in this way are used for sharing, then Jingmu and others will also receive 45% of the sharing.
After all this time, the senior executives of the original Haima Motors will definitely make money on these stock cars!
Figured this out.
Jing Mu and other senior officials were overjoyed, excited and moved.
The senior executives discussed one after another: "I didn't expect Changtian Technology to be so benevolent and righteous."
"We have all prepared for the worst, and Changtian Technology really gives us too much face by doing this."
"We have no regrets at all about cooperating with Changtian Technology. Such a company is indeed considering the future of Haima, not just for its own interests."
Through this small thing, Jing Mu and other Haima Company teams were completely convinced of Chen Xiao and Changtian Technology.
They put aside all the suspicions and doubts they had before the cooperation and prepared to cooperate with Changtian Technology wholeheartedly.
And they are also confident and determined that after cooperating with Changtian Technology, Haima Automobile will definitely be reborn and become a role that cannot be ignored in the entire Xiaguo automobile industry chain.
No doubts, no questions.
The board of directors of Haima Automobile unanimously approved the final acquisition plan of Cangqiong Automobile, a subsidiary of Changtian Technology.
Cangqiong Automobile holds 55 shares of New Haima Automobile (all of which are high-quality assets) through technology investment, and at the same time acquires part of Haima Automobile's inventory for 2.4 billion RMB.
All the liabilities of the original Haima Automobile were only borne by the original shareholder of Haima Automobile, the old Haima Automobile Company (now renamed Nanhai Donglin Automobile Company).
Haima Automobile Co., Ltd., which was listed on the A-share market, belongs to the new Haima Company, and its liabilities have been divested and it continues to trade on the A-share market.
At the same time, New Haima Automobile Company announced that Haima Automobile will continue to trade in the A-share market from now on.
After Haima Automobile announced this news.
The entire automobile industry was shocked!
People in the automobile industry had expected that Haima Automobile would be acquired by Changtian Technology, but they did not expect that Changtian Technology would move so quickly.
"Haima takes off!"
This is the unanimous view of all industry professionals.
Being acquired by Changtian Technology is like riding an express train.
How is it possible without taking off?
And some domestic car companies that are on the verge of bankruptcy are very envious.
They couldn't figure it out, and at the same time, you were about to go bankrupt, why would Haima Company be attracted by Changtian Technology?
Among them, the most anxious one is of course Lifan.
After all, Lifan Automobile was once one of the domestic automobile companies that Changtian Technology wanted to acquire.
And the investors in the A-share market, especially those who bought Haima Automobile shares, were crazy with joy.
On the day Haima Auto resumed trading, it hit the daily limit.
There are even millions of buyers.
According to this trend, Haima Auto's stock will definitely continue to reach its daily limit, and its stock price will skyrocket.
at the same time.
The team at Cangqiong Automobile has taken the equipment to Haima Automobile's factory.