Jianghuai Automobile Discloses RMB2.8 Billion to Increase Production Capacity of Passenger Vehicles

Jianghuai Automobile (600418) disclosed its 2010 annual report. The company realized operating revenue of 29.704 billion yuan, an increase of 47.84% year-on-year, and a net profit of 1.176 billion yuan, an increase of 243.81% year-on-year. At the same time, the company has revealed that public issuance methods will issue no more than 150 million shares and no more than 2.8 billion yuan in funding. The funds raised were mainly used for the expansion of the company’s passenger car base and the company’s annual output of 200,000 high-performance gasoline engines.

2.8 billion yuan in financing for two major projects

According to the announcement of Jianghuai Automobile, the company plans to issue no more than 150 million yuan of ordinary shares through public issuance, and the raised capital will not exceed 2.8 billion yuan. The main investment projects are: Anhui Jianghuai Automobile Co., Ltd. passenger car base expansion project, Anhui Jianghuai Automobile The company has an annual output of 200,000 high-performance gasoline engine projects.

The person in charge of the Jianghuai Automobile Company stated that the total investment of the expansion project for the passenger car base is estimated to be 2,184.5 million yuan, of which: construction investment is 1,786.1 million yuan, and initial working capital is 394,400,000 yuan. The total investment of the company's annual production capacity of 200,000 high-performance gasoline engines is estimated to be 664.98 million yuan, of which: construction investment is 600.07 million yuan, and initial working capital is 61.91 million yuan. The total planned investment for the above two projects is approximately RMB 2,848,480,000. At the time of this public issuance and issuance, the original A share shareholders of the company have the right of first refusal.

Commercial vehicle and passenger car annual report

For the freshly-released annual report, the relevant person in charge of the company stated that 2010 is the year when the "Eleventh Five-Year Plan" ended. Faced with many uncertainties in the macro-economy and the auto industry, the company persisted in taking the road of quality and efficiency and persisted in structural adjustment. , Adhere to product optimization, speed up the pace of development, and vigorously promote the development of the three major systems, research and development, manufacturing, marketing capabilities, all indicators are the best in history.

The two businesses of commercial vehicles and passenger vehicles have shown good momentum. Light trucks and MPVs continue to play a dual-pillar role of scale and efficiency. Sales volume growth ranks in the forefront of the industry, and their position in the market segment is more stable. The sedan maintains a high growth rate, which is among the highest in the industry. The rapid development of the engine business led to a doubling of production. The small-displacement gasoline engine was once again named the “China Top Ten Engine” and performed well with international well-known brands in both domestic and foreign markets. The international business accelerated the deployment of the global market, and the light truck exports continued to maintain its leading position in the industry. Passenger car exports have achieved remarkable results. Achieve breakthroughs in foreign joint ventures and cooperation, and signed joint venture agreements with heavy trucks and engine projects with Fortune 500 companies. Due to the company's long-term development principle of "Quality First, Pursuit of Excellence", in 2010 it won the "National Quality Award" as the highest honor in the national quality award.

During the “Twelfth Five-Year Plan” period, the company will consolidate and develop the core business with light trucks and Ruifeng commercial vehicles as the main body, steadily develop strategic businesses involving cars as the main body, and actively deploy new energy vehicles. Adhere to the quality and efficiency of the road, the quality of priority size, shape the brand with quality. In 5 to 10 years, Jianghuai Automobile has become a powerful manufacturer of Chinese automobile owners with strong international competitiveness.