·Beiqi after listing: developing its own brand under the marketization mechanism

After 10 years, Beiqi finally successfully listed, and it is the biggest financing for auto companies. For Beiqi, this is undoubtedly a time to be rejoicing, but in that case, listing is not the end point is a new starting point! So what about Beiqi, after the listing? What new changes will be ushered in?
First of all, the most obvious change is that there is a huge amount of money available for use, which can alleviate the urgent need, and can vigorously develop its own brand and get rid of excessive dependence on foreign brands.
Beiqi is really bad.
On the one hand, the continuous acquisition and production base construction in recent years has left a large financial gap, taking several well-known acquisitions as an example: In December 2009, BAIC Holdings completed a well-known Nordic price for 200 million US dollars. The acquisition of the core intellectual property of the automobile brand “Saab”, on November 25, 2013, Beiqi acquired Changhe. Although the purchase price is less than 100 million yuan, the planned future investment is as high as 13 billion yuan... In addition to a series of acquisitions, Beiqi In recent years, the construction of production bases has also been increased. For example, on June 20, 2011, the first phase investment of Huangqi Automobile Production Base started to reach 5 billion yuan, and the accumulated investment reached 100 yuan. At the same time, BAIC also launched a large aircraft project.
On the other hand, BAIC's own brand development is in short supply. Due to the late start, most of the products that BAIC's own brands put on the market have not yet reached the payback period. BAIC's own brand is still in a state of losing money in a row, and the loss in 2013 alone reached 2.75 billion yuan. At the same time, the future development of BAIC's own brand also needs a lot of financial support. If the continuous injection of funds is not available, then the huge independent brand strategy is also “no rice”.
The funds obtained from this listing will undoubtedly help BAIC solve these two major problems and help BAIC develop its own brand to get rid of the excessive dependence on the joint venture brand.
The BAIC Prospectus disclosed that it plans to use approximately 60% of the net proceeds from the Global Offering, which is HK$5,574.1 million (RMB 4,844.8 million) for fixed asset investment, including the construction of the Beijing Automotive Powertrain Production Base (Phase I). Powertrain R&D Center (Phase I) construction project, Beijing Benz passenger car production expansion plan and engine plant construction. The other 10%, or HK$965.7 million, was used to develop Beijing car passenger cars; about 5% was HK$482.8 million to develop sales networks and promote Beijing car passenger cars. This means that at least 30% of the funds obtained from the listing are used to develop BAIC's own brands.
Of course, as a latecomer to the auto market, in 2012, Beiqi, the self-owned brand of the first self-owned brand model, was launched. It is impossible to solve the fundamental problem by relying on huge funds. How to dance at the foot of the elephant group? How to seek breakthroughs and independent development in today's giant forest automobile brand market is a problem that needs to be considered and solved.
However, in the long run, the biggest impact of the listing on BAIC is the change in the management system. As is known to all, BAIC is a state-owned enterprise. Compared with private enterprises, state-owned enterprises need more reforms in all aspects of systems and mechanisms. For example, one of the important reasons for the large-scale corruption case that broke out in FAW is the imperfection of the state-owned enterprise supervision mechanism. Due to the mandatory information disclosure obligations set by the Company Law and the Securities Law, the listed company will be more transparent, the degree of supervision will be higher, and the operating system will be more standardized.
After the listing, BAIC must use a market-oriented mechanism to operate the enterprise. The enterprise management system and mechanism will be more modern, more flexible, more efficient, and more efficient. This will accumulate “energy” for BAIC's own brand development and production. ", thereby promoting the development of Beiqi more healthy and rapid.

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