Company introduction of Anhui Quanchai Group Co., Ltd.

It was learned from the Anhui Property Rights Trading Center that starting from March 15, 2011, Anhui Province began to publicly list and transfer 100 state-owned shares of Anhui Quanchai Group Co., Ltd., with a listing price of RMB 2,148.87 million. Quanchai Group holds 44.39 shares of listed company Quanchai Power (600218).

It is reported that the People's Government of Quanjiao County, Anhui Province holds 100% of the state-owned equity of Quanchai Group. The scope of assets corresponding to this transfer is all the assets after stripping the following assets: Quanjiao County held by Quanchai Group 26 shares of Fulian Real Estate Co., Ltd.; 9.84 shares of Anhui Yaou Wood Industry Co., Ltd.

Quanchai Group has a registered capital of 158 million yuan and has an annual production and sales capacity of 400,000 multi-cylinder diesel engines, 50,000 tons of plastics and 200,000 sets of automotive interior parts. According to relevant statistics, Quanchai Group's diesel engine sales have been hovering at the fourth position in the industry. Weichai, Yuchai, and FAW Xichai are its strong market competitors.

According to the evaluation report, the total assets of Quanchai Group are evaluated at 2,398.7582 million yuan, the total liabilities are evaluated at 213.1465 million yuan, and the net assets are evaluated at 2.1856117 million yuan. The net assets evaluation after deducting the divested assets is The value is 2,148,865,200 yuan. The evaluation base date is August 31, 2010.

Anhui has issued a series of strict conditions for the transfer. It is reported that the intended transferee should have management experience in large group companies and listed companies, with a registered capital of no less than RMB 3.5 billion; the company has been profitable in the past three years, and the cumulative net profit in the past three years is no less than RMB 1.5 billion. At the same time, the intended transferee or its group company should have diesel engines (medium speed or low speed), construction machinery and related heavy equipment manufacturing business; in the field of high-speed diesel engines, it should not form horizontal competition with Quanchai Group or Anhui Quanchai Power Co., Ltd. .

In addition, the intended transferee needs to submit a strategic development plan for Anhui Quanchai Group Co., Ltd. to ensure that Anhui Quanchai Group Co., Ltd. will achieve an annual revenue of more than 10 billion yuan within 3 years after the transfer is successful. sales revenue. The intended transferee should promise to keep the registered address, profit center and tax area of ??Anhui Quanchai Group Co., Ltd. unchanged after the successful transfer, and comply with the overall economic development plan of Quanjiao County. The transferee shall inherit the creditor's rights and debts of the target enterprise, as well as the guarantee responsibilities of Anhui Quanchai Group Co., Ltd. and its subsidiaries.

The listing price is RMB 2,148.87 million, and the listing period is from March 15 to April 12, 2011. The intended transferee should pay a bidding deposit of RMB 630 million within the announcement period.

Some market participants analyzed that Anhui has formulated a series of very demanding conditions, which are suspected of being "tailor-made" for certain enterprises. In fact, as early as early January 2010, Quanchai Power announced that the Quanjiao County Government, the actual controller of the company, and the central enterprise China Hengtian Group Co., Ltd. signed the "Quanchai Group Cooperation Project Cooperation Agreement". The main contents are: The People's Government of Quanjiao County provides the resources of Quanchai Group, conducts strategic cooperation with China Hengtian Group Co., Ltd., and provides the most preferential policy support in land, taxation and other related aspects; China Hengtian Group Co., Ltd. gives full play to the role of central enterprises in With advantages in capital, brand, industry, marketing network, policy, etc., we will cooperate with the People's Government of Quanjiao County to jointly promote the accelerated development of Quanchai Group and invest 1.5 billion yuan in 3-5 years to improve Quanchai Group's engines. We will integrate and upgrade other industries, striving to make Quanchai Group’s sales revenue reach 10 billion yuan. We also work together to promote the development of automobile-related industries in Quanjiao County in terms of motor vehicles.

Quanchai Power announced that the equity transfer and introduction of strategic investors of Quanchai Group span a long time span and involve a wide range of tasks, and need to be reported to the relevant national departments for approval step by step in accordance with regulations. This work involves changes in the company's actual controller and indirect acquisitions of the company, and may trigger a tender offer. Upon the company's application, the company's shares will continue to be suspended from March 16, 2011.