FAW's overall listing changes into the public as Toyota or missed


Investor News reporter was informed that the overall listing path of FAW Group is clear, and the largest asset integration platform is the newly established FAW Group Co., Ltd. (hereinafter referred to as FAW Co., Ltd.). The rumored group in the market may achieve overall listing during the year. However, Gao Yuan, director of the News Center of FAW Group, told the "Investor" reporter: "There is no clear timetable for listing."

At present, FAW Group and Guangzhou Automobile Group are both in full preparation for the overall listing, and Guangzhou Automobile Group has been reported to be landing in the end of March this year will be different from the A shares, the FAW Group's listing process has not yet been finalized.

In fact, the overall listing of FAW Group has dragged on for 5 years. From the perspective of the current FAW shares' asset structure, FAW-Volkswagen and its spare parts assets have been allocated, but the overall listing of FAW Group is still quite variable.

Sources told the "Investor" reporter that the FAW Group was too big and its assets could not be fully incorporated into listed companies. This has the problem of balance of interests. As to whether the Chinese assets in the disputed joint ventures are included, the source stated that the assets of FAW-Volkswagen and FAW Toyota’s Chinese assets were incorporated and barrier-free with reference to the SAIC and Dongfeng Motor’s template. However, due to various reasons, the possibility of FAW Toyota’s incorporation is not high.

FAW architecture Volkswagen missed Toyota

FAW was listed as a whole and the largest asset integration platform was FAW Co., Ltd., which was established at the end of June 2011.

As early as last year, four options for the overall listing of FAW have been made public. The establishment of FAW Co., Ltd. and absorption of FAW Car (000800.SZ) and FAW Xiali (000927.SZ) was considered by the industry as the IPO program finalized by FAW's overall listing, that is, to strip FAW Fuwei, Qiming Information, FAW Car, FAW Xiali. The newly established FAW shares will be injected to achieve overall listing.

At present, the overall listing of FAW has undergone a preparatory period of 5 years. It is further rumored that the entire listed platform FAW Co., Ltd. will be formally established before April of this year. After six months of trial operation, FAW shares can be listed through special channels of large state-owned enterprises. . It is not entirely unfounded that “the realization of overall listing during the year” and “to be completed before the 18th National Congress” are rumors on the market.

From the perspective of the needs of the listing and financing, FAW Group has been making frequent moves in the development of its own new models. FAW has announced that it will invest RMB 19 billion in research and development expenses during the 12th Five-Year Plan to focus on developing its own brands. By 2015, it will achieve a total capacity target of 5 million vehicles, including 2 million independent brands. To achieve this blueprint, the capital demand will reach 150 billion yuan, it can be said that the financing needs of FAW listed have been very urgent.

Judging from the latest FAW shares, FAW shares are included in the 15 subsidiaries of FAW Group. Besides FAW Car and FAW Xiali, 13 subsidiaries including FAW Jiefang and FAW Jilin are also included. Among them, among the joint ventures most concerned about, FAW-Volkswagen's 60% share of FAW-Volkswagen is impressively listed. However, FAW-Toyota accidentally “falls behind”.

Some media reported that FAW Toyota has not been included in the listed assets blueprint. The reason is that FAW and Toyota have failed to straighten out the issue of the equity injection of FAW Toyota. The Chinese assets in the joint venture company held by FAW will not be injected in the overall listing but will wait for further capital operation in the future.

In fact, FAW Xiali also holds a 30% stake in FAW Toyota. According to media sources who have been engaged in IPO observation for a long time, compared with SAIC and Dongfeng, the joint venture assets have been incorporated into listed companies. FAW can follow suit.

It is difficult to establish the rumor that FAW Xiali's holding of 30% of FAW-Toyota shares and failed to load the entire listed assets. FAW Group's passenger vehicle manufacturers are mainly FAW Cars, FAW Xiali, FAW-Volkswagen and FAW Toyota. The first two are autonomous car companies, and the latter two are joint ventures. Industry sources told the "Investor" reporter, if FAW Xiali this brand can not be injected, then talk about the overall listing of FAW Group.

The overall listing of the joint venture is the pillar

Under the current status of the Chinese automotive market, the profitability of joint venture brands far exceeds their own brands. The profit of FAW Group is mainly supported by its joint venture business. There are many variables in the auto brand business.

"If the joint venture car is excluded from the listed company, the joint venture brand and independent brand owned by the FAW Group will become rivals from the brothers." Insiders pointed out to the "Investors" reporter.

The overall listing of FAW Group must also consider profitability. At present, the obvious status quo is that joint venture brands FAW-Volkswagen and FAW-Toyota are the pillars of FAW Group's profitability, and it is difficult for independent brands to achieve profitability. Therefore, he speculated that, in addition to FAW Cars, FAW Xiali, FAW Jiefang, FAW Jilin, FAW Haima and other independent car prices into the shares of FAW shares, FAW-Volkswagen, FAW Toyota should also be included in the FAW shares. FAW Fuwei, Qiming Information and other FAW parts and components can be temporarily injected into the FAW shares.

In 2011, FAW Group's profits and taxes reached 38 billion yuan, creating a record high, and achieved the main business income of 346.4 billion yuan, an increase of 26.6% over the same period last year. This undoubtedly contributed a beautiful financial report to the overall listing of FAW.

In addition, under the influence of FAW Group’s own brand, the newly-developed red flag sedan will resume production in the second half of the year, and with the favorable influence of high-end red flag vehicle government procurement, FAW Group will welcome opportunities from the development of the main brand. However, given the long history of differences between self-owned brands and joint venture brands, it is not known whether they can break through in the future. The only thing that can be confirmed is that FAW Group is doing its utmost to create a high-end image of the red flag car that is being remanufactured.

In the tense atmosphere in which the entire FAW Group was listed and entered the sprint stage, FAW Car and FAW Xiali were exposed to the divestment of the related transactions with FAW Group, the largest auto parts company of FAW Group.

According to the above-mentioned industry insiders who observe IPO, for the FAW Group, the overall listing can effectively prevent the occurrence of related transactions. FAW's two listed vehicle companies and the same company as FAW Group's parts and components company's Fuao shares broke out the "association transaction" storm, in order to promote the FAW Group to speed up the completion of the main and auxiliary industry divestiture, and after the group's overall listing how The opening of the "associated transaction" to openness and transparency sounded a wake-up call.

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