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Volkswagen is talking with Jianghuai Automobile and Guoxuan Hi-Tech about buying shares to promote Jianghuai afternoon second board.
May 27,2020 13:33CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM5 March 27: 27 Jianghuai car afternoon second board, sealing order more than 1.6 million hands.

Volkswagen is in the final stages of negotiations to reach the largest investment agreement with Chinese electric vehicle companies, two sources said. Volkswagen is preparing to buy a 50 per cent stake in Anhui Jianghuai Automobile Group Co., Ltd., its parent company, for at least 3.5 billion yuan. It will also become the largest shareholder in Guoxuan Hi-Tech Co., a maker of electric car batteries, adding that the two deals could be announced as early as Friday.

According to the 2019 annual report released by JAC Motors, the company realized operating income of 47.286 billion yuan, down 5.6% from the same period last year, and realized a net profit of 106 million yuan belonging to shareholders of listed companies, while JAC Motors lost 786 million yuan in the same period in 2018 and turned losses into profits in 2019. Jianghuai Automobile's non-net profit in 2019 is negative 978 million yuan. although it has reversed losses as a whole, Jianghuai Automobile has deducted negative non-net profit for three consecutive years. The financial report also shows that JAC's receivables related to government subsidies include central and local subsidies for new energy vehicles, with a total balance of about 3.882 billion yuan, which is expected to be collected within four years.

In 2019, Jianghuai Motor sold 421200 vehicles and chassis, down 8.91% from the same period last year. Of these, sales of light trucks were 192800, up 0.53 percent from the same period last year; sales of sports utility vehicles were 86800, down 6.88 percent from the same period last year; sales of basic passenger vehicles were 38000, down 21.68 percent from the same period last year; sales of multi-purpose vehicles were 37600, down 32.66 percent from the same period last year. The cumulative sales of new energy models vigorously developed by Jianghuai Automobile was 58000, down 8.87 per cent from the same period last year.

At the same time, the financial report also gives a plan for 2020. Jianghuai Automobile plans to produce and sell 450000 to 500000 vehicles and chassis in 2020, an increase of 6.83% and 18.70% over the same period last year, and is expected to achieve operating income of 50 billion-55 billion yuan, an increase of 5.57% and 16.13% over the same period last year. This plan is the preliminary plan of the company at present, and the specific plan will be adjusted according to the situation.

From January to December 2019, Anhui Jianghuai Automobile Group Co., Ltd. produced 63669 new energy vehicles and sold 61975 new energy vehicles. The 2019 annual report shows that cooperation projects with Volkswagen have continued to deepen, and the construction of joint venture R & D centers has been carried out in an orderly manner. New achievements have been made in the cooperation project with Xilai Automobile. ES6 smooth production and delivery, ES8, ES6 cumulative delivery of more than 20, 000 vehicles, bilateral cooperation of the third model officially unveiled. With the considerable development of Jianghuai Automobile in the field of new energy vehicles, and Volkswagen has opened its own electric era, the cooperation between the two sides will be more efficient in the future.

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