According to information from the Shandong Property Rights Exchange, the 2.5% equity transfer project of Shandong Haoxin Machinery Co., Ltd. (referred to as “Haoxin Machinery”) is being listed, with a reserve price of 151,302,400 yuan, and the starting and ending date of listing is September 24 to October 26, 2021.
The 2.5% stake is priced at 151 million yuan, which means that the overall valuation of Haoxin Machinery is as high as 6 billion yuan.
According to the Shandong Finance and Economics Report, Haoxin Machinery is currently the R&D and manufacturing base of domestic commercial vehicle brake drums and wheel hub products, a single champion enterprise in the Chinese foundry industry, and one of the subsidiaries of Shandong Haoxin Group. The equity holder of the proposed transfer of Haoxin Machinery is Changyi Changsheng Urban Construction Investment Co., Ltd., a subsidiary of Changyi State-owned Assets Administration; and in the previous months, Changyi Huihe Intelligent Industrial Park Investment Co., Ltd. (referred to as “Huihe Intelligent Industrial Park”) “), Changyi City Changsheng Industrial Development Investment Group Co., Ltd. (referred to as “Changsheng Industrial Investment Group”) has listed and transferred nearly 50% of the equity of Shandong Haoxin Changsheng Auto Parts Intelligent Manufacturing Co., Ltd. (abbreviated as “Haoxin Changsheng”), a subsidiary of Haoxin Machinery.
2.5% equity bidding price of 151 million yuan
The listing information shows that Haoxin Machinery was established in February 2003 with a registered capital of 244.04 million yuan. The company’s registered place is located in Weizi Town, Changyi City. The legal representative is Lv Jixian. There are 1296 employees. Haoxin Group is the largest shareholder with a shareholding ratio. It is 59.0231%.
According to the information on the official website, Haoxin Machinery is currently mainly engaged in the R&D and manufacturing of engine parts and chassis products for commercial vehicles, passenger cars, and construction machinery. It is currently a domestic R&D and manufacturing base for commercial vehicle brake drums and wheel hubs. With an annual production capacity of 170,000 tons (3.66 million pieces), it is one of the top 50 industrial enterprises in Weifang City, one of the top 100 national foundry enterprises, and the single champion enterprise of China’s foundry industry.
Shandong Finance and Economics reported that Shandong Haoxin Machinery Co., Ltd. ranked No. 43 on the list of “Top 100 Chinese Auto Parts Companies in 2021” selected by the “China Automobile News” with a revenue of 7.0 billion yuan in 2020 parts and components. And has been on the list for many years in a row. However, from the information on the company’s official website, it should be Shandong Haoxin Group that made the list.
The listed financial information shows that Haoxin Machinery has a good performance. In the first two months of 2021, Haoxin Machinery has achieved operating income of 737 million yuan and net profit of 65.0514 million yuan; as of February 28, 2021, the company has total assets of 5.470 billion yuan, total liabilities of 4.257 billion yuan, and owners’ equity of 1.213 billion yuan. .
However, by the end of July 2021, Haoxin Machinery’s total assets and owners’ equity have fallen sharply, and its performance has not increased but declined.
According to reports, in the first seven months of 2021, Haoxin Machinery achieved operating income of 1.061 billion yuan and net profit of 63.718 million yuan; as of July 31, 2021, the company’s total assets were 3.947 billion yuan, total liabilities were 3.273 billion yuan, and owners’ equity 674 million yuan.
The Shandong Finance and Economics report noted that the asset evaluation base date for Changsheng Construction Investment’s proposed transfer of 2.5% equity is February 28, 2021. As of that time, the book value of Haoxin Machinery’s net assets was 1.213 billion yuan, and the estimated value was 6.052 billion yuan. The estimated value of 2.5% equity is 151 million yuan.
Nearly 50% of Haoxin Changsheng’s equity was previously transferred
The Shandong Finance and Economics report learned that before the listing and transfer of 2.5% of the shares of Haoxin Machinery, two companies controlled by the State-owned Assets Administration of Changyi City had listed and transferred nearly 50% of the state-owned shares of Haoxin Prosperity, a smart factory of Haoxin Group, a few months ago.
It is reported that Haoxin Changsheng was established in December 2017 with a registered capital of 714.3 million yuan. The company’s business scope includes processing, intelligent manufacturing and sales: high-tech products, auto parts, various mechanical parts, etc.; Haoxin Machinery holds 51.001% of the shares as a controlling shareholder. Shareholders, Prosperity Investment Group holds 27.9994% shares, and Huihe Intelligent Industrial Park holds 20.9996% shares.
According to media reports, Haoxin Prosperity is a smart factory project of Haoxin Group, which held a full-scale production ceremony on December 30, 2019. Shandong Haoxin Group Chairman Lu Jixian introduced at the ceremony that Haoxin Prosperity Smart Factory project has a total investment of 1.5 billion yuan and covers an area of 400 acres. It is a modern smart factory with “intelligence + green casting + Internet +”. Benchmarking enterprise.
“On December 30, 2019, the second line of casting was put into operation, marking the full operation of the entire project, with an annual production capacity of 300,000 tons and 3 million sets of high-end castings. It is expected to achieve annual sales income of 3 billion yuan, profit and tax 4 100 million yuan.” Lu Jixian said that the commissioning of smart factories is a new starting point for Haoxin to become a world-class auto parts manufacturing enterprise. Haoxin Group will use the project as an opportunity to move towards high-end in an all-round way, realize a global layout, and strive to establish cooperative relationships with 20 Fortune 500 companies in 2020, and achieve a new leap in sales revenue of over 10 billion in 2021.
However, in May 2021, Prosperity Investment Group listed and transferred 27.9994% of Haoxin Prosperity’s equity in Shandong Property Rights Exchange, with a reserve price of 222.5676 million yuan. In the same period, Huihe Intelligent Industrial Park also listed all the 20.9996% equity of Haoxin Prosperity held for transfer, with the transfer base price of 169,926,100 yuan.
Financial data shows that in January 2021, Haoxin Prosperity achieved operating income of RMB 76,530,300 and net profit of RMB 612,500; as of January 31, Haoxin Prosperity had total assets of RMB 114,587,800 and net assets of RMB 703,604,500; the estimated value of net assets was RMB 79,901,200. Yuan, 12.98% more than the book value.
Shandong Finance and Economics reported that in the project of the transfer of 48.999% equity of Haoxin Changsheng by Prosperity Industrial Investment Group and Huihe Intelligent Industrial Park, Haoxin Machinery did not give up the right of priority. During the listing period, one of the intended transferees paid a trading margin. In the end, the above-mentioned equity transfers were all completed at the listed price.
According to the information from Tianyan Check, Haoxin Machinery currently holds 100% equity of Haoxin Changsheng.