Yan Yumin: Stripped Chinese Saloon in Light of Gold Cup Car
Due to the recent action of Brilliance Automotive, investors are quite concerned about the “how to boost the performance of Jinbei Automobile â€, and Yu Yumin, Chairman of Brilliance Automotive Group and Chairman of Jinbei Automobile responded yesterday. He disclosed that the Group is planning to jointly produce a Mercedes-Benz special car with European companies in China and discuss cooperation projects with Toyota Motor. However, he believes that the timing of the overall listing of the Brilliance Automotive Group is not yet ripe.
The Brilliance Automotive Group has recently made repeated moves in the capital market. The Group’s Hong Kong-listed subsidiary, Brilliance China, has not only stripped its loss of its own-brand Chinese sedan assets, but has also joined forces with the joint venture to increase production and expand production of BMW Brilliance. In this regard, Yan Yumin said that this is not the Huachen Group's "abandoned China, ambiguous BMW, busy circling the money." Yan Yumin said, “The sale of the loss-making Chinese business to the Brilliance Automotive Group is to relieve the burden of listed companies such as Brilliance China and Jinbei Auto . With the Group’s overall takeover of its own brand, and in accordance with the China Development Plan for the next three years, the China Business The abnormal cost of about RMB 1.5 billion will be reduced, and the average cost of each vehicle will be reduced by RMB 2,000. We are confident that we can turn the Chinese business into a profit in 2011.†In Brilliance China, Yan Yumin did not make a clear response. He only stated that he would “consider A-share listed company issues at the right timeâ€.
In connection with the spin-off issues, Jinbei Motors , which holds a 39.1% stake in Shenyang Jinbei Automobile, recently announced that the company will make an impairment provision of approximately RMB 1,622.8 million and increase the amount of losses for Jinbei Automobile in 2009 accordingly. Yesterday, when asked by reporters about “what will boost the performance of Jinbei Automobile in the futureâ€, Yu Yumin said, “I don’t worry, I’ll see it in the future.†He said that although the scope of business of Jinbei Automobile will be reduced after the Chinese sedan business is dismantled, the future profitability will be improved. Because Brilliance Automotive Group intends to expand commercial vehicles, including special vehicles, and Jinbei Automobile 's main business is commercial vehicles.
Yu Yumin further stated that the Brilliance Automotive Group has negotiated with Mercedes-Benz authorized special-purpose vehicle companies in Austria and other places to produce the Mercedes-Benz special-purpose vehicles. In the mid-level light vehicle market, the Group is preparing to negotiate with Toyota Motor Co., Ltd. for related cooperation matters; In the car market, it continues to expand its own brand of sea lions. He also stated that "Brilliance Automotive (Tieling) Special Vehicle Company will mass-produce modified vehicles by June 2010 at the latest. In addition, we also intend to develop mini-cars that are more suitable for the rural market." It is reported that Jinbei Automobile holds Huachen Automotive. Tieling special car company 16.7% stake.
When asked, "The Brilliance Automotive Group has three listed companies - Brilliance China, Jinbei Automobile , and Shenhua Holdings, and how they will achieve overall listing in the future," said Yan Yumin, "Capital operations such as overall listing are either to seize the opportunity. For the time being, it will be a matter of course. Seizing the opportunity is just like our low-cost increase in Brilliance China. At present, the overall listing has not yet been completed."