Views: 0 Author: Site Editor Publish Time: 2022-10-12 Origin: Site
------- Commercial Vehicle Aftermarket Welcomes Changes
From the beginning, Shaanxi Auto has been very optimistic about the development of its after-market segment, and it once had high hopes that by 2017, the proportion of new energy and after-market service business other than heavy truck business would be increased to more than 30%.
Shaanxi Auto's bullishness on its after-market segment is not without reason.
As China's auto market enters a mature phase, the focus of competition in the industry has shifted from the incremental market to the stock market, and the after-market segment is the focus of competition among all parties.
According to the national medium and long-term development plan for the automotive industry, the value chain of the automotive aftermarket should reach 45% of the entire automotive value chain in 2020 and 55% in 2025.
In recent years, the commercial vehicle after-market is also in a rapid development and change.
On the one hand, vehicle manufacturers have seen a trend of whole industry chain integration in all aspects, including sales, finance, logistics, parts, maintenance and service.
For example, Yuanxing Supply Chain, a subsidiary of Shaanxi Auto, claims to be a platform company that will make every effort to build an online and offline service system for the entire life cycle and operation of trucks with the help of other business resources in the after-market segment.
Zhang Yu'an, head of investment and securities department of Shaanxi Auto Holdings, also introduced to Pink Lane Finance that each business unit of the group's after-market segment does not exist independently, but provides some service combinations according to the needs of customers.
Image source coffee vision China
On the other hand, giants outside the industry, including Jingdong and Shunfeng, have also become directly involved in the commercial vehicle after-market by way of investment. The pursuit of more capital has prompted the commercial vehicle aftermarket to usher in a rapid change.
In this context, the performance of the aftermarket segment of Shaanxi Auto is also remarkable.
In the financial leasing business, the registered capital of Deyin Leasing has increased from 300 million yuan to the current 1.05 billion yuan. At the Deyin Leasing 2020 Annual Business Meeting, Wang Yanhong, deputy secretary of the Party Committee and general manager of Shaanxi Auto Holdings, also said that a moderate capital increase will be made to Deyin Leasing this year to expand its capital.
As of the end of 2019, the volume of Deyin Leasing's financial leasing business has reached 20,000 units, and the asset size has also exceeded 7 billion yuan.
Zhang Yu'an also revealed that from the perspective of safety management, human-vehicle interaction and vehicle-vehicle interaction, the business of Tianxingjian Telematics is also very good in terms of growth at present.
And the revenue share of logistics to Shaanxi Auto's after-market segment has also reached about 60%-70%.
In 2019, Shaanxi Auto's after-market segment achieved an annual revenue of $2.367 billion, up 32.4% year-on-year. However, this amount still accounts for a relatively low proportion of Shaanxi Auto's overall revenue.
In addition, Shaanxi Auto's after-market segment is still under continuous adjustment, and the Group is conducting market research and exploring customer needs in order to provide more value-added services.
At a symposium for entrepreneurs held in Xi'an on August 5, Yuan Hongming, secretary of the party committee and chairman of Shaanxi Auto Holdings, said that in terms of new models, the group's restructuring and overall reorganization work will be accelerated, and the Hong Kong H-share listing of DBH will be promoted.
"Deyin Holdings is the after-market segment of Shaanxi Auto, this segment has been developing relatively well and doing relatively well in the industry, so we have developed this idea to see if there is a possibility of listing, and now we are looking for some institutions for consultation, still in the planning and demonstration stage." Zhang Yu'an said to Pink Lane Finance.
This decision is actually not so unexpected.
First of all, in the face of the changes in the commercial vehicle aftermarket, Shaanxi Auto's need for capital is undeniable, and the difficulty of listing in the Hong Kong market is undoubtedly relatively small.
Secondly, just in terms of financial leasing business, since 2011, when Far Eastern Hongxin (http://03360.HK) was listed in Hong Kong, more than 10 financial leasing companies have been listed in Hong Kong, and a number of other companies have submitted their forms, especially in the past two years, this rhythm has been accelerated.
This is undoubtedly the best "home" for DB Leasing.
In addition, once DB Holdings is listed in Hong Kong, it will also add color to Shaanxi Auto's capital operation blueprint.
