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Haima is expected to usher in new opportunities

From:Internet Info Agency 2020-11-06 17:02:21

Just like marriage, the conclusion of a relationship between a couple gives a form of life to the marriage, and the performance of the two people in the subsequent family management and husband and wife relationship determines whether the marriage can continue to be happy. If they encounter difficulties, the two can't work together to solve the problem, and when the hearts of the people are separated, the divorce is not far away.

The same is true for the "marriage" between enterprises. When the two sides have differences on the status quo of development and future plans, the "breakup" is inevitable. For example, in the automotive industry, with the advent of the market winter, many car companies choose to "break up". In the near future, FAW Group and Haima Auto may be one of them.

A few days ago, it was reported that the Hainan Provincial Government planned to buy back the shares held by FAW Haima Zhong FAW. Hainan Development Holding Co., Ltd. will replace FAW as the second largest shareholder of FAW Haima, and it will take over with major shareholder Haima Motor. Regarding the rumor, although all parties involved have stated that "the relevant information has not been received so far."

But combined with the actual situation, this rumor is not groundless. On the one hand, the FAW Group is seeking to go public as a whole, and cannot bypass the issue of FAW Haima's equity. On the other hand, as the construction of the Hainan Free Trade Port enters the full implementation stage, as the only well-known car company in Hainan Province, Haima Motor, which is under increasing performance pressure, has become more determined to develop independently.

"Marriage" of more than 20 years of entanglement

The "marriage" between FAW and Haima starts from thirty years ago. In 1988, riding the east wind of the establishment of a provincial special economic zone in Hainan, the Hainan Automobile Manufacturing Plant was established. In 1992, the Hainan Automobile Manufacturing Plant and the Japanese Mazda Automobile Company were joint ventures to produce Hainan Mazda. However, because Hainan Automobile did not have the qualification for automobile production at that time, the vehicles produced by Hainan Mazda at that time could only be sold and used in Hainan Province.

In order to obtain the production qualification, in 1998, the Hainan Automobile Manufacturing Plant was transferred to the FAW Group in the form of state-owned assets, and was renamed as FAW Hainan Automobile Co., Ltd., by which FAW Hainan Automobile obtained the automobile production qualification. At that time, Jing Zhu, the director of the Hainan Automobile Manufacturing Plant, was unwilling to be transferred to the FAW Group. He organized hundreds of old employees to form a shareholding meeting and established the private Haima Motor Company in 2000.

In 2004, at the request of Hainan Province and the FAW Group, the privately-owned Haima Motor Company and FAW Hainan Automobile Co., Ltd. completed the merger and established FAW Haima Motor Co., Ltd., with FAW Group, Haima Group and Hainan Provincial Government each holding 49%, 49%, and 2%, respectively. However, in addition to bringing production qualifications, FAW has almost no other support for FAW Haima, especially financial and technical support, which makes Haima always seek opportunities for independent development.

Against this backdrop, in 2007, Jing Zhu led Haima Motor to go north to Zhengzhou to establish Haima Motor Co., Ltd., and began to embark on the road of independent development. In the same year, Hainan Province transferred its 2% stake in FAW Haima to Haima Motor, and Haima Motor thus consolidated FAW Haima.

However, with the rapid growth of China's auto market since then, Haima Motor's performance has also improved by leaps and bounds. It can receive considerable dividends from Haima Motor every year. FAW Group naturally does not want to withdraw. Until recent years, Haima Motor's performance has begun to decline year by year, and FAW Group is eager to go public.

Haima Motor seeks change in its predicament

In recent years, China’s auto market has entered a period of adjustment, Haima Motor’s sales have begun to decline rapidly, and its performance has turned from profit to loss. Data show that in 2017 and 2018, Haima lost 994 million yuan and 1.637 billion yuan respectively. In 2019, it turned losses into profits through self-rescue by selling houses.

Entering 2020, under the influence of the epidemic, Haima Motor's net profit attributable to owners of the parent company in the first half of the year lost 173 million yuan and operating income was 1.311 billion yuan, a year-on-year decrease of 43%. Sales data show that from January to August, Haima Motor’s cumulative sales were 8301, a year-on-year decrease of 55%. Among them, the models produced and sold by Haima in August were all SUVs and MPVs. The sales of cars were zero, and only three cars were sold from January to August, and the output was zero. This may mean that FAW's Haima plant has stopped production.

But Haima Motor did not give up the road to self-help. Since the return of founder Jing Zhu, Haima Motor’s willingness to seek self-help has become stronger and stronger. Last year, the capital gains brought by a series of operations such as selling houses have balanced out the loss of the main business and generated a surplus, which proves that Haima has never given up on cars. Strong proof from the market.

Of course, Haima knows that if it wants to continue in the highly competitive Chinese auto market, the most fundamental thing is to rely on good models. Because of this, Jing Zhu has repeatedly stated that after returning to the front line, Haima Motor's products will adhere to the category strategy and the soul of CASE in the future. Among them, insisting on the category strategy is to be the champion of single subjects.

Haima 8S is Jing Zhu’s first product after returning to Haima Motor. It is burdened with the mission of increasing Haima’s sales. However, the sudden epidemic has greatly reduced the effectiveness of Haima8S. Last month, the brand-new Haima 7X was officially launched, opening the clarion call for Haima Motor to enter the MPV market again.

New energy market "spring breeze" adds momentum

At the critical moment when Haima Motor started its road to self-help, good news came from the market and policy levels. In June of this year, the Hainan Free Trade Port construction plan was released. The plan proposes to vigorously develop high-tech industries and strengthen advanced manufacturing around "new energy vehicles and smart cars".

As the only vehicle manufacturer in Hainan Province that has the qualifications to produce new energy and traditional fuel vehicles, after Hainan Province has acquired a stake in Haima Motor, it will obviously become a key support object of Hainan Province. For Haima Motor, the equity change at this time can not only get rid of the control of FAW Group, but also get the support of Hainan Province, taking advantage of the time and place.

A person from Haima Motor told the outside world that the next Haima brand's marketing, operation, product, and service planning will be promoted by the Zhengzhou base. The Haikou base will focus on overseas business, focus on the advantageous and characteristic areas of Hainan FTP, focus on the development of emerging industries such as new energy, and explore new businesses under the group's planning.

In fact, some time ago, it was reported that Porsche is preparing for localization and can be assembled through the Hainan Free Trade Zone to enjoy the tax-free policy, or to establish a joint venture with Haima Motor, a local car company in Hainan Province. Although this news was subsequently denied by both parties, it also shows from the side that Haima Motor is still a high-quality resource in the eyes of many people. In the future, it is not ruled out that other car companies can cooperate with Haima to produce new energy vehicles.

 Author: Nowadays, China's auto market is at a critical stage of conversion from old to new. On the one hand, the overall market has entered an era of stock competition, and on the other hand, the trend of the "new four modernizations" continues to deepen, giving birth to new vitality.

For Haima, who has had peaks and troughs in the past 30 years, it is undoubtedly a good thing to be able to develop independently in the environment of the new energy market and the "spring breeze" of the market. But if you want to get a ticket to the future, you have to work harder.

Editor:Yuan Honglei