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China National Truck Completes Freight Car Business Restructuring
China Zhongche's truck business has been reorganized. On May 21, the founding meeting of China National Car Changjiang Transportation Equipment Group Co., Ltd. (hereinafter referred to as "China National Car Changjiang Group") was held in Wuhan. China Chevron Changjiang Group is mainly composed of the former China Chevron Changjiang Company, including China Chevron Guiyang Company, Meishan Company, Taiyuan Company and Xi'an Company. The establishment of China Chevron Changjiang Group marks the completion of the restructuring of the freight car sector under China Chevron's flag.
Located in Wuhan, Hubei Province, the headquarters of the Changjiang Group is 5 billion yuan registered capital, with a total of 217,000 employees. It has 15 secondary subsidiaries. Zhongche Changjiang Group is a group enterprise with truck products as the core, cold chain transportation, modern logistics equipment, construction machinery as the pillar, information technology, consulting services, construction steel structure as the support of the industrial structure system.
It is understood that China's truck business originally had 10 enterprises, according to the North-South division of the two companies - China Car Qiche Group and China Car Changjiang Group. China Che Qiche Group was established on May 9 in Qiqihar City, Heilongjiang Province. It has five first-class sub-enterprises, including China Che Qiche Company, China Che Shenyang Company, China Che Shijiazhuang Company, China Che Shandong Company and China Che Ximeng Company, with registered capital of 6.7 billion yuan and total staff of 203,000.
The establishment of China National Chemicals Changjiang Group has a clear purpose: to reduce production capacity and improve business performance. Data show that the number of trucks purchased by China Railway Corporation dropped from 40,000 in 2012 to 66,000 in 2016. China's original truck companies have the capacity to build and repair more than 80,000 trucks.
After the restructuring, Beijing Erqi Vehicle Co., Ltd. will withdraw from the new truck manufacturing and repair business, transform and upgrade to develop the service economy. Shijiazhuang Vehicle Co., Ltd. and Guiyang Vehicle Co., Ltd. will withdraw from the new truck manufacturing business and continue to maintain the repair business. The repair market share of the original Beijing 27th Vehicle Co., Ltd. will be undertaken by the two companies. After adjustment, the capacity of 10,000 vehicles can be reduced.
Decreased demand for trucks has been accompanied by a decline in truck performance. In 2013, the revenue of China's truck sector accounted for 11.54% of the total operating income, which dropped to 6.21% in 2014, 4.77% in 2015 and 3.08% in 2016. Among them, Qiqihar and Changjiang Vehicle Company each lost more than 300 million yuan in 2016. Due to the drag of truck business, China's net profit fell by 4% for the first time in 2016. In 2017, China's car revenue fell by 8.14%, and the decline in net profit increased to 4.35%.
In order to reverse the current dilemma, China National Truck decided to take the lead in implementing the restructuring of truck business, but this is not the only attempt. China National Truck is developing in a diversified way.
China Zhongcha first looks to the new energy field. Recently, the first pure electric vehicle of China Zhongcha has been tested on the road, and the photos have also appeared on the Internet.
In addition, the strategic investment agreement signed between China National Automobile Corporation and Bronze Sword Technology will accelerate the development of Bronze Sword Technology in IGBT (Insulated Gate Bipolar Transistor) drive field. It is understood that IGBT is the core device of energy conversion and transmission, as a national strategic emerging industry, it is widely used in rail transit, smart grid, aerospace, electric vehicles and new energy equipment and other fields.
The industry believes that China National Automobile has strong technical capabilities, and diversified development can give full play to its own advantages. But how to integrate the reorganized business and the business to be reorganized smoothly is the most important thing in front of us. (Source: Xinhua News Agency)