Details of the hottest XCMG restructuring Carlyle

Details of XCMG's restructuring: Carlyle is not the "last bet"

details of XCMG's restructuring: Carlyle is not the "last bet"

China Construction machinery information

Introduction: we are anxiously waiting for the approval results of Carlyle's equity participation. At present, there is no asset injection plan. As for external rumors, we will clarify them in due course. On June 17, a person in charge of XCMG group told this newspaper that about the suspension of XCMG Technology (000425) a few days ago, there are many

"we are anxiously waiting for the approval results of Carlyle's participation. At present, there is no asset injection plan. As for the external rumors, we will easily cast complex shapes in due course for clarification." On June 17, a person in charge of XCMG group told this newspaper, "there are many reasons for the suspension of XCMG Technology (000425) a few days ago. It is certain that the suspension was not caused by asset injection."

on June 13, XCMG technology was suspended due to major issues. The company will conduct policy consultation and scheme demonstration to relevant departments within 5 working days after the suspension

the above suspension triggered "XCMG group is about to be listed as a whole". It is said that the rotation angle of linear stepper will produce a certain linear displacement, and the speculation that XCMG's restructuring was delayed by Carlyle during the approval period has not stopped

Wang Min, chairman of XCMG group, made a positive clarification in an interview with this newspaper in early June, "our current restructuring has not been delayed, and all preparations are advancing in an orderly manner, but we must wait for Carlyle's approval results before choosing an opportunity to start."

the "three main reasons" for the suspension of trading

many people confirmed that the approval result of Carlyle's participation in XCMG will be announced at the end of June. At this delicate moment, XCMG technology suddenly suspended its trading, and the restructuring of XCMG group once again aroused a thousand waves

according to the above person in charge of XCMG group, there are three main reasons for the suspension: first, XCMG group has publicly announced that it will withdraw from the joint venture established with caterpillar and re-establish XCMG excavator company at the same time; Second, the final approval result of Carlyle's participation in XCMG will be obtained by the end of June, which is under heated discussion outside; Third, XCMG is planning major investment projects, and the industrial layout will be adjusted

"as for the overall listing, this is only an expectation, and there is no timetable at present; on the other hand, it should be restructured first, and then choose an opportunity to start asset restructuring." An internal executive of XCMG said, "at present, the restructuring plan has not been finalized, and the asset restructuring naturally cannot be operated."

according to our newspaper, a large-scale discussion on XCMG's restructuring has just ended within XCMG group, and a master plan on restructuring has been submitted to the local competent departments in Xuzhou

the core topic of this discussion is, how many feasible schemes are there for restructuring? Which plan is the most beneficial to the development of the enterprise? If Carlyle's equity participation is not approved, when will the future restructuring start

since Carlyle's participation in XCMG has not been approved so far, the above master plan has not been officially announced. It is likely that the plan will be submitted to the relevant national ministries and commissions after reaching an agreement with the relevant local authorities in Xuzhou

"over the past year, there have been many variables in Carlyle's participation in XCMG, and XCMG's performance has increased significantly, so we must make a new overall development strategy." Wang Min, chairman of XCMG group, told this newspaper, "while waiting for the approval results, we are also actively exploring a new path of restructuring."

"the so-called new restructuring path, that is to say, Carlyle is not the final bet of XCMG's restructuring. After the national discussion in 2006, we have understood that there are many restructuring paths. If XCMG does not introduce foreign capital, it can also introduce domestic financial capital, and it must hold its own shares." Wang Min said

industrial restructuring

the "two-sided preparation" within XCMG group is that whether Carlyle's 45% stake in XCMG group can be approved or not, it has prepared the corresponding development strategy

"if it is approved, Carlyle will strictly abide by the terms of the contract and fulfill its obligations for the development strategy of XCMG; if it is not approved, XCMG has also found a new way of restructuring. We are not sorry, because we have our own development goals." An executive of XCMG said

Wang Min said, "although in various contradictions, XCMG's development strategy is very clear, that is, to take root in the main industry, integrate resources and extend to the upstream industrial chain."

"we believe that doing a solid job in industrial operation up to 24999.24 yuan/ton is the first. As for capital operation, we put it second, and the stock effect is not our ultimate pursuit. Unlike individual enterprises in the industry, they talk about capital operation all day." An executive of XCMG pointed out

it is reported that XCMG's future development plan has been officially issued, and its core strategy is to re position the industry. While expanding and strengthening the main industry of construction machinery, XCMG is carrying out industrial adjustment in three aspects

first, break up with caterpillar and set up its own excavator production line to produce XCMG brand excavators; Second, integrate internal parts resources and re-establish a large-scale production base of core parts of construction machinery; Third, XCMG group will invest in wind power equipment projects, and the business scale is expected to reach 10billion yuan in five years. According to Wang Min, the transmission part adopts circular arc synchronous toothed belt, XCMG group holds 15.87% shares in the joint venture with caterpillar, with tens of millions of dividends every year. According to the contract, the joint venture company can only use the brand of caterpillar and cannot produce excavators of XCMG brand

after XCMG sold all its 15.87% shares to caterpillar, XCMG obtained the qualification of excavator production, and there was no contract dispute. This requires an intermediary audit to determine an appropriate transfer price. Wang Min said that after exiting from the caterpillar joint venture, XCMG's excavator business plans to achieve sales of 1billion yuan within three years, and has invested 200million yuan at present

in terms of core parts, caterpillar built a new parts base in Wuxi last year for global internal supply. Since this base is not open to domestic construction machinery manufacturers, the base has greatly reduced the import cost of Caterpillar's parts, which has formed great market pressure on XCMG, Sany Heavy Industry (600031 market, Guba), Liugong (000528 market, Guba) and other enterprises

"Caterpillar's Wuxi parts base is worthy of research by domestic enterprises. We have officially established a project and decided to establish the largest parts production base among similar domestic enterprises, first to meet internal supply and at the same time export." Wang Min said that Sany Heavy Industry and Liugong are also establishing similar parts bases, and XCMG should speed up

most importantly, XCMG group plans to focus on the research and development of XCMG brand engines in the above parts bases. "As for XCMG engine, we have been planning for several years, and it has been clear in the Contract negotiated with Carlyle that Carlyle will be responsible for introducing relevant technologies." An internal person in charge of XCMG said, "when we introduce Carlyle investment, this is a very critical negotiation clause, because Carlyle has invested in many related engine enterprises around the world."

"if Carlyle's equity participation is not approved this time, we will still develop our own engine, which is our long-term strategic goal." The person in charge said

in the overall industrial layout of XCMG group, the industry is most worried about XCMG's involvement in wind power equipment, because this aspect has little industrial relevance

Wang Min said, "wind power is a new industry we are cultivating, but we have accumulated relevant technology, because the core components of some construction machinery are interlinked with the technology of wind power equipment. In general, we are extending the industrial chain, not taking risks to transform."

according to another report, XCMG is negotiating with a German wind power equipment technology company, hoping to introduce relevant technology; At the same time, XCMG is also negotiating with CNOOC, China Shenhua and other large wind power enterprises, hoping to cooperate together. It is estimated that the scale of wind power equipment business will reach 10billion yuan in three years