Recently, Tianjin FAW Xiali Automobile Co., Ltd. has clarified the specific plan for the latest reorganization.
According to the report, FAW Xiali intends to sell 17.5% equity of Xin'an Insurance to FAW and undertake 100% equity of Xiali Operation of all assets and liabilities except for 17.5% equity of Xin'an Insurance and offset input tax as of the assessment base date, FAW designated FAW Assets is the asset taker.
At the same time, FAW Car Co., Ltd. intends to transfer its 697,620,651 shares of FAW Xiali (accounting for 43.73% of the total share capital of FAW Xiali before the transaction) to China Railway Materials Co., Ltd. for free.
After the completion of the transaction, FAW Xiali Company will withdraw from vehicle manufacturing, and its main business will be changed to the rail transit industry-oriented material supply chain management and rail operation and maintenance technical services.
It is worth noting that the report stated that in view of the overall poor operating conditions of the assets to be sold, the transaction price of the assets to be sold by FAW Xiali was determined as 1 yuan.
As one of the earliest domestic car brands, FAW Xiali's sales reached a peak of 253,000 vehicles in 2011, with revenue of 9.954 billion yuan.
After that, FAW Xiali's overall sales began to decline, and corporate profits plunged. From 2012 to the first half of 2020, the cumulative loss reached 10 billion yuan in eight and a half years.
Editor in charge: [Li Ji]