But has Fosun, which has always started with capital operations, want to take root in the development of the auto industry, or does he want to use the current hot speculation of the auto concept or buy shell money? What will be the "car testing" of capital operation masters? All this remains to be seen.

New passenger car joint venture with foreign capital launched in March

In an interview with reporters, Liang Xinjun, vice chairman of Fosun Group, said with confidence: “We will increase cooperation in the passenger car sector. The Jinlong passenger car segment will be bigger.”

At the same time, a new bus project will be launched in March in the schedule of Fosun's "Car Dream Plan." Because of the fear of exodus, Liang Xinjun did not disclose specific circumstances to reporters. However, he told reporters that this is a passenger car joint venture project with foreign investors.

Fosun began to participate in the manufacturing of passenger car manufacturers last year. On April 8, 2003, Fosun Group and Jiangxi Coal Group signed a letter of intent for cooperation in Nanchang City, Jiangxi Province. “The two parties will jointly develop Anyuan buses.” On October 11, 2003, Anyuan announced that the company participated in the transfer of the equity held by Huaneng General Industrial Co., Ltd. and won the bid. On September 17, 2003, it signed the “Equity Transfer Contract” with Huaneng General Industrial Company. Acquired a 25% stake in Xiamen Jinlong held by it. Before this, the long-time Fosun took control of Xiamen Golden Dragon.

According to the plan of Fosun, within two to three years, the sales of “Anyuan Bus” will reach 2 billion yuan. Fosun plans to invest 1 billion yuan in this project.

Liang Xinjun used “reverse thinking” to explain to reporters why Fosun wants to enter the bus industry: “In China’s auto industry, only agricultural vehicles, construction vehicles, passenger cars, and trucks are cheaper than other places. So Fosun wants to be in the auto industry. Competitiveness must be found in these areas.” He believes that agricultural vehicles are purely low-cost competition. Construction vehicle manufacturing is basically a labor-intensive type, while passenger vehicles are multi-variety and meet the requirements of Fosun Investment. “We are thinking backwards, first of all looking for Chinese industries that can compete in the world, and then think of ways to be China’s leader.”

1 billion yuan huge investment overseas mergers and acquisitions into the auto parts industry

The reporter learned from the person familiar with the matter a few days ago that Fosun will inject capital into Nanqi. “It is possible to produce a sedan model.”

In this regard, Liang Xinjun denied to reporters that he wanted to enter the car. However, he said that in addition to passenger cars, Fosun hopes to make a difference in auto parts. He affirmed the reporter's intention to cooperate with Nanqi in auto parts talks. "But we are also talking to domestic and foreign manufacturers of auto parts. Fosun and related companies at home and abroad are talking about auto parts cooperation."

Liu Ningsheng of the Foreign Affairs Division of the Nanjing Automobile Group, in response to a reporter’s question, confirmed that Fosun and Nanjing Automotive are cooperating, but it is still unclear what the specific situation is. “It is far from a foregone conclusion.”

The reporter also learned from other sources that, long ago, Fosun wanted to make a difference in auto parts. For this reason, he visited old experts such as Chen Guangzu and other auto parts experts.

Liang Xinjun has the idea that China's auto industry will have great development in the coming years. The fierce competition may lead to overcapacity, but the result of fierce competition in vehicle production is to increase the dependence of autos on auto parts. “This makes it very meaningful to master the core technologies and components that can drive the progress of the whole vehicle.” And the short cut Fosun wants to take is to combine Chinese low-cost manufacturing directly with international brands and advanced technologies. “We It is very likely that there will be direct domestic and foreign purchases or cooperation." Liang Xinjun said.

Liang Xinjun believes that China's current auto parts industry is still at a low level of competition, "according to the gourd," lack of parts and components industry can promote the replacement of the model, he thinks this is an opportunity for Fosun. “FOSUN plans to use RMB 1 billion (US$120 million) to conduct overseas mergers and acquisitions in the auto parts industry.” He told reporters, “FOSUN hopes to control the inside.”

If Fosun intends to play a protracted battle in the auto parts field, the turbulent momentum of the multinational component giants in China and the “deep and inefficient” nature of Chinese auto parts companies will also be a problem facing this new investor. The highest profits of auto parts in the Chinese market are obvious to all.

On September 1 last year, Visteon, a global automotive parts supplier, relocated Asia-Pacific headquarters to Shanghai, and Delphi had 13 wholly-owned and joint venture enterprises in China after its “staking races” in China, with total sales in China. Nearly 500 million U.S. dollars. This is in contrast to the weakness of China's domestic parts and components companies: small share, lack of R&D expenditures and capabilities.

The car industry absolutely does not enter

Although Fosun showed great enthusiasm for passenger cars and auto parts, Liang Xinjun told reporters that Fosun certainly does not enter the car industry. He believes that "the current car industry has been overheated and reinvestment has become unclear. I cannot feel where our competitiveness lies in investing in cars."

However, Guoxin Junan Automotive Analyst Zhang Xin believes that Fosun's investment in passenger cars and auto parts is "Xiangzhuang dance sword, intended to be Peigong," and may eventually do the car industry. Because the state has strict approval for cars, and the cost of public relations is very high, private capital, household appliances, and communications industries are all involved in cars first from buses. Fosun will also take such a road, “but it will ultimately value It is the vehicle." Zhang Xin predicted.

Fosun, who has always attached great importance to the return on capital, is expecting a rapid return on investment in the automotive industry. Liang Xinjun told reporters, “The automotive sector that we invest in will also find ways to go public. New investments will come from listed companies.”

The automotive industry is recognized as an industry with large investments and long return periods. This may be due to the fact that Fosun bosses who are accustomed to rapid capital operation and rely on investment income have no psychological expectations. According to the report of “New Fortune” magazine last year, following the adoption of the internationally renowned financial crisis prediction model, the financial risks of Fosun Group are increasing year by year. The later, the greater the cost of Fosun's investment, the greater the risk.