At the beginning of september, the news of a “ncc pushing south china vehicle (601766, sh), north china vehicle (601299, sh) launched a double stop。
This is not the first time that the north-south vehicle has been brought together, but this time the north-south vehicle has been more cautious than any previous clarification. In the repeated notice, apart from the dual denial that the merger proposal had not been reported to the conac, the two changed their previous categorical denial, and the unified announcement stated: “the matter of reorganization of zhang will be decided by the higher authority, and currently the controlling shareholders of the company have not received the relevant documentation.” however, the resulting speculation has increased。
From the former family to the break-up of 14 years each, competing north-south vehicle sales revenues up to the end of 2013 have increased from the original billions to nearly hundreds of billions, and have been ranked among the top sales of world orbital transport equipment for many years。
What is the source of the merger? Is it true that we've been together for a long time? Whether the rumours are true or false, the so-called “intentionality is necessary” begins with the history of the north-south divide。
The life of the north and south
With regard to the division of the north-south vehicle, the clock must be drawn to the year 2000, when it was significantly restructured in connection with the unified decoupling of five major companies under the former railway department. A senior trader (hereinafter known as the old railways) who had been working in motor vehicles in close proximity to the north and the south, told the daily economic newser that it was in the major restructuring of 2000 that china railways and vehicles industries, the predecessor of the north and south (hereinafter referred to as the “china railways company”), and china land wood engineering group, which belongs to the former ministry of railways, china railway construction, china railway engineering, and china railway communication signals, all had been delinked from the railway department。
Since china motors is the only firm that fears a monopoly, in september 2000 china motors was approved to split into two large state-owned groups, south and north, no longer controlled by the railway department。
However, the split between the north and the south was not overnight. According to publicly available information, as of the end of 1999, there were 2 group companies, 33 factories and 4 research institutes under the central car company, with total assets of rmb 25. 87 billion. The distribution of assets and the adjustment of teams were once the most painful problems。
“the final solution at the time was the yangtze, which in principle required that the two splits be of equal strength and diversity, and that the splits take into account `skinned pairs'.” according to the above-mentioned old railers, “it is also because of the fundamental interests of the two major groups involved that, under the `smuggling mix', there is a phenomenon such as the transfer to the south of the beijing 27 vehicles and the chang flat vehicle mechanics north of yangtze”. This person, for example, was divided into two teams, while fierce competitions were waged at headquarters for hard labour and secret service。
“the programme was hasty and hardly open to discussion, from hearing the wind, setting the plan, to the actual separation of transfers, for more than six months.” the old railers recalled that。
Thus, after more than a year of trial operations, until february 2002, when the office of the state council issued a copy of the state council's reply on issues related to the formation of the southern china motor vehicles industries group. In july 2002, the new china southern motor vehicle industries group, inc., and the north china motor vehicle industries group, inc. Finally held an official unveiling ceremony in beijing。
According to journalists, the break-up of middle-car companies is based mainly on the spirit of “building competition and avoiding duplication”. At that time, the new leadership of the south motor group stated that the state had divided and reorganized the former chinese motor vehicle company into two major groups, with the aim of creating a level playing field for the rolling stock industry, promoting the development of the rolling stock industry and providing excellent equipment and services。
With the official split between north and south, the largest restructuring in the history of industrial development of chinese railway rolling stock ended。
Sales revenues increased tenfold in 14 years
With the initial “building competition” promise of a break-up, north-south cars have been very strong in technology development and market development. “we were all very stressed at the time, thinking about how to put technology on top of each other, so that we could compete.” the old railers said。
After more than a decade of development, the north and south are not the same as the south, either through technological breakthroughs or market sizes. The original intention to encourage a north-south split has largely met expectations. China's railways have made rapid progress and have achieved a “gold decade” in the area of rail transport equipment for the north-south “two oligarchs”。
According to the daily economic news reporter, through the continuous introduction of digestion and the acceleration of the full autonomy of the railway core technology, north-south vehicles have developed a full range of high-speed vehicle fleet products at different speeds of 200-380 km per hour and in different forms, including crh2a, crh2b, crh2c, crh2e, crh3, crh3a, crh5, crh380a(l) and crh380b(l). At the same time, the latest china standard motor unit is under active development and, as of september this year, the design has been evaluated。
In terms of the scale of sales, in a media interview in 2012, zhao xiaogang, then president of the south china motors, revealed that in 2000, when the south china motors was first established, it generated only $10. 3 billion in sales, and almost 100 per cent came from the only customer, the railway department. The newly established chinese norther vehicle was in the same position as the souther vehicle。
According to the data, the north-south vehicles had achieved $9,789 million and $9,724 million respectively in business income in 2013, close to 10 times their respective revenues when the two companies were established. According to journalists, the north-south vehicle target for 2015 is around $150 billion. The “extra-road markets” (other than railways) expanded through the development of new industries also account for about 50 per cent of total income。
It is worth noting that, according to the annual ranking of the orbital transport equipment industry, published in 2013 by the well-known german consulting firm, sciverkehr, the income from the operation of new motor vehicles in china in 2012 continued to be among the world's top providers of orbital transport equipment. For the past five years, china's north-eastern motor vehicles, subway vehicles and railway trucks have been among the highest in the world, as have their motorized fleets, which are more than 300 kilometres per hour. The chinese south vehicle followed. In the capital market, china's souther vehicle was listed as a whole in 2008, and after the north chinese car was listed as a stock in 2009, it also completed the h stock listing in the first half of this year。
Responsible editor: zhang dei
