The Ministry of Industry and Information Technology announced on April 8 that it plans to add a new list of automobile manufacturers. Ningbo Shanshan Automobile Co., Ltd. (hereinafter referred to as Shanshan Automobile) is listed among them. The remarks are displayed as “newly established special vehicle production enterprisesâ€.
Shanshan Automobile was established in 2015. It was established by Ningbo Shanshan Electric Vehicle Technology Development Co., Ltd. (hereinafter referred to as Shanshan Electric Vehicle). Established in 2011, Shanshan Electric Vehicle was established by Shanshan New Energy Technology Development Co., Ltd. (hereinafter referred to as Shanshan New Energy) and Ningbo Shanshan Co., Ltd. (600884.SH, hereinafter referred to as Shanshan). Shanshan is also one of the shareholders of Shanshan New Energy. Another shareholder of Shanshan New Energy's shareholders is Shanshan Tongda Trading Co., Ltd. All of the above companies are "Firshan".
Shanshan started its clothing industry and entered the lithium-ion battery related products in 2001. In 2011, it began to be the upstream and downstream of energy vehicles.
In January 2015, Shanshan Electric Vehicle and Inner Mongolia First Machinery Group Co., Ltd. and Beiben Heavy Vehicle Group Co., Ltd. jointly established Inner Mongolia Qingshan Bus Co., Ltd. (later renamed Inner Mongolia Qingshan Automobile Co., Ltd.). Shanshan’s 2015 semi-annual report shows that “the new plant has started construction.â€
In May 2015, Shanshan Co., Ltd. issued a plan to increase the amount of funds raised to 3.456 billion yuan for the research and development and industrialization of key technologies for new energy vehicles, lithium-ion power battery materials projects and supplementary liquidity.
Shanshan shares performed poorly in the apparel industry. In the 2015 semi-annual report, the total revenue of the apparel business during the reporting period was 300 million yuan, a year-on-year decrease of 55.36% and a profit of 6.45 million. The reason for turning losses into profits was that the knitwear business was no longer included in the consolidation scope.
At the same time, competition in the lithium battery industry has intensified. The 2015 semi-annual report showed that lithium battery materials business reached 1.5 billion yuan, up 32.03% year-on-year, but profits fell 8.81% year-on-year.
Entering the whole vehicle has become the strategic direction of Shanshan. In February 2016, a message from the website of Ningbo Yinzhou District Economic and Trade Bureau entitled “Shansong to build a new car†shows that Shanshan’s new energy vehicle Ningbo production base is about 40,000. The square meter factory renovation project has been successfully completed, and more than 40 sets of conventional vehicle production equipment with an investment of 15 million yuan have been put in place. Yinzhou District of Ningbo City is the registered place of Shanshan Automobile.
At present, the state has an attitude of encouraging and supporting new energy vehicles. In June 2015, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the “Regulations on the Management of New Pure Electric Passenger Vehicle Enterprisesâ€, opening the door for non-complete vehicle manufacturing enterprises to enter this field. (For details, please refer to "The first single-time vehicle production qualification is approved soon")
According to industry insiders, it is not easy to apply for the single production qualification of electric vehicles. Most non-complete vehicle companies choose to acquire qualified automobile companies and enter the field of new energy vehicles.
In March 2016, Gree Electric announced that it intends to issue shares to acquire Zhuhai Yinlong New Energy Co., Ltd. The same is true for new energy vehicles, and domestic Internet companies have also adopted this approach.
Another option for companies to get involved in new energy vehicles is to apply for special vehicle production qualifications.
Compared with the production qualification of passenger cars, the qualification threshold for special vehicles is lower. The “Special Vehicle and Trailer Production Enterprise and Product Access Management Rules†promulgated by the Ministry of Industry and Information Technology in 2009 stipulates that special vehicles are manufactured on the basis of purchased vehicles or chassis, and the product manufacturing process and process are relatively simple. According to the “New Energy Vehicle Manufacturing Enterprise and Product Access Management Rules†promulgated by the Ministry of Industry and Information Technology in 2009, car manufacturers with production qualifications can produce similar new energy automobile products after meeting relevant access regulations. This means that after obtaining the special vehicle production qualification, Shanshan Automobile can apply for the production of new energy-specific automobile products.
Encouraging capital to enter the new energy vehicle sector is the original intention of the policy, but it also poses challenges to regulation.
The Equipment Department of the Ministry of Industry and Information Technology issued the "Notice on Further Strengthening the Relevant Issues Concerning the Administration of Automobile Production Enterprises and Product Access" on March 11, emphasizing the strengthening of post-event supervision and improving the automobile production enterprises and product access management systems.
Miao Wei, Minister of the Ministry of Industry and Information Technology, said in an interview with Caixin reporters during the China Development High-Level Forum on March 21 that it is necessary to follow the standards for production enterprises and product access, as long as the standards are met, they can come in and implement the policy of “widening and strict managementâ€. After the event, the company found that the company has violated the law and will strictly punish the loan.
The list of new auto manufacturers will be announced as of April 14. If there is no objection, the official list will be announced by the end of this month, and Shanshan Automobile will officially obtain the automobile production qualification.
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