Investment of BAIC: 600 million yuan will be invested in three weeks. How to be a good promoter of self-help in the automobile industry under the epidemic situation?

[? A billion euro guide? ]? In just three weeks, BAIC followed up and helped dozens of enterprises.

Author Zhang

Editor zhangyan

An epidemic in COVID-19 has spread all over the country, making the automobile industry, which has entered the cold winter, even colder.

When most people are concerned about masks, vaccines, test papers, and even colleagues in the automobile industry have begun to adjust the production line to make masks, BAIC investment has turned its attention to its own automobile industry.

"In the first quarter of this year, especially in February, the decline of the auto market will be very amazing." Shi, Party Secretary and General Manager of BAIC Group Industrial Investment Co., Ltd. (hereinafter referred to as "BAIC Investment"), recently told Yiou Automobile.

As it said, according to the statistics of the National Passenger Car Information Association, the sales volume of passenger cars in China decreased by 2 1.5% in June and1October this year, while the cumulative decline in the first three weeks of February has exceeded 90%.

(Watchmaker/Yiou Automobile Analyst? Zeng Le)

According to history, as early as June+10/October 23rd, 5438 (the 29th of the twelfth lunar month), the production and investment company set up an emergency contact group to deal with the impact of the epidemic on its business.

Soon, Wuhan, the birthplace of the epidemic, decided to close the city, and strict prevention and control measures were taken throughout the country. Due to the basic inability of personnel to flow, it is difficult for enterprises to return to work, and the demand is seriously suppressed, which leads to a sharp increase in the pressure on the production side. The upstream production can't keep up, and the downstream demand drops sharply, which undoubtedly has a huge negative impact on the automobile industry.

BAIC Investment Co., Ltd. was established on 20 12, and is a wholly-owned subsidiary of BAIC Group, a fortune 500 company in the world. It is also the core platform for its capital operation, equity investment and innovation incubation, and undertakes the mission of promoting the transformation and upgrading of BAIC Group. Up to now, BAIC's production investment management funds have exceeded 30 billion yuan, with more than 0/00 invested enterprises and more than 20 withdrawn enterprises. It is one of the largest investment institutions in China automobile industry.

At present, many of the nearly 100 enterprises that BAIC has not quit are growth enterprises. Some of these enterprises are in the initial stage and some are in the development stage.

Shi said: "If those promising growth enterprises collapse because of the short-term epidemic, it will be a loss to the management and the whole industry."

(Funds invested by BAIC and invested enterprises/investment officials of BAIC)

In order to help some growing enterprises tide over this "difficulty" and contribute to the fight against the epidemic, BAIC Investment and its related subsidiaries launched the epidemic prevention measures for enterprises in the 10 industrial chain on February 7. On February 20th, BAIC made and invested 600 million yuan in epidemic prevention and control bonds, and received a letter of no objection from Shenzhen Stock Exchange.

Up to now, the above ten anti-epidemic measures have been launched for more than three weeks. What are the effects of these ten measures? What kind of problems have you encountered?

654.38 billion yuan comes from stock funds.

The 10 anti-epidemic measures put forward by BAIC Investment Co., Ltd. cover investment support, industrial coordination, preferential loans, insurance protection, development of special products for "epidemic situation", and assistance to enterprises and individuals in epidemic areas. Specifically including:

65,438+0. Set up a special fund pool of no more than 1 billion yuan to fight the "epidemic";

2. Provide various short-term cash flow support solutions for enterprises;

3. Provide car service for epidemic prevention personnel, provide insurance protection for medical staff and help production and life in epidemic areas;

4. Provide financial incentives for car purchase in epidemic areas;

5. Provide deferred repayment service for the corresponding industrial chain partners;

6. Upgrade the epidemic insurance protection plan;

7. Provide 5,000 copies of "love insurance" for employees of BAIC Group in epidemic areas;

8. Help Northeast China to fight epidemic and epidemic prevention through donations;

9. Providing intellectual property data and consulting services free of charge;

10, the party building alliance and the science and technology accelerator jointly acted to fight the epidemic.

In this 10 measure, there are both equity support such as directional capital increase and debt financing such as financial leasing to help enterprises solve short-term financial pressure. Medical staff in epidemic areas, officers and soldiers of China People's Liberation Army and other frontline anti-epidemic and epidemic prevention workers. For the employees of BAIC, they are also given certain financial and insurance support to relieve their worries about participating in epidemic prevention and fighting or returning to work and production.

If you want to help, you need to solve the problem of money first. The 6,543.8 billion yuan fund pool prepared to fight the epidemic did not come from re-raising, but included the transfer of existing funds and the support of BAIC Group. "The time cost of establishing a new fund is too high." When talking about why not set up a new fund, he said.

(Hand in hand/no sparks)

At present, there are still 3-5 billion yuan equity funds in the funds invested by BAIC. The businesses of enterprises invested by these funds distributed all over the country have almost been affected by the epidemic to varying degrees. Therefore, communication with investors of these funds is relatively smooth.

When the problem of money is solved, the problem of people will be easy to deal with. Although this 10 measure involves many different types of subsidiaries, Shi said that these subsidiaries are all in favor of fighting the epidemic. He believes that apart from the high voice of BAIC production and investment, there are two main reasons for everyone's high recognition: First, these subsidiaries are state-owned enterprises with a high sense of political mission and social responsibility; In addition, most of these companies have business dealings with enterprises in Hubei.

It's one thing to be willing to help, but it's another thing to invest. In view of what kind of help should be provided, BAIC Investment held a special meeting with some invested enterprises and industrial chain partners to understand some practical difficulties. Through the comprehensive consideration of these difficulties and their own practical ability, BAIC Investment and its subsidiary * * * have formulated the above specific solutions.

"Food and grass" and "men and women" are all ready, so it's time to make a move.

Who should I vote for?

When a large number of investment institutions plan to postpone their investment plans, BAIC plans to improve investment efficiency. In view of some enterprises with high growth and equity financing needs, the support for equity investment has been increased.

How can the limited funds in the automobile industry play a greater role? Who should the equity investment be invested in? The answer given by BAIC Investment is: a high-quality enterprise with development potential.

Although the definition is simple, it is extremely difficult to really make a judgment. In order to judge whether the project is of sufficient quality, BAIC Investment has formulated evaluation criteria including team, technology, management, products, past financing and other dimensions, and there are more detailed dimensions behind each criterion.

(network car /Pixabay)

In addition, as the epidemic became more and more serious, many cities seriously affected by the epidemic, including Wuhan and Xi 'an, began to restrict the operation of online car rental. A large number of online car companies have to stop, and drivers can only sit at home. If the epidemic continues, these enterprises are likely to be insolvent, and some drivers are also burdened with high debts because they cannot operate.

Such enterprises and people are one of the key targets of BAIC's auto finance business.

In BAIC's view, enterprises that really need funds and have development potential in the future should take the time to inject funds into them, but those enterprises that are not strong in their own strength should also refuse decisively. Even if some enterprises survive the current winter, spring is still difficult to survive.

Even with a set of evaluation system, Shi admits that industrial investment co., Ltd. still often discusses the existing standards: "How to make this standard reach some enterprises more reasonably and effectively may still be a test for us." In the future, the evaluation criteria of BAIC production and investment will be continuously optimized over time.

"The assistance we can provide is limited," Shi said. "While helping difficult enterprises, we must also ensure the interests of investors and state-owned assets."

According to the statistics of BAIC investment, up to now, there are about 15 enterprises that do have short-term financial difficulties, which have been recognized by BAIC investment and are docking capital investment. The above-mentioned enterprises will receive equity financing from BAIC with a total investment of 654.38+500 million to 200 million yuan. Among them, some enterprises that have obtained equity financing will also receive debt financing of 1: 1. The scale of funds mobilized by these enterprises is about 300 million yuan.

In terms of auto finance, the applied enterprises and individuals have involved 300 million yuan. Due to the direct impact of the stagnation of personnel flow under the epidemic situation, some logistics car companies, network car companies and drivers' personal credit have a greater demand for funds. Among these 300 million yuan, some apply for loan renewal and some apply for deferred repayment.

However, there is little feedback on the C-end demand of epidemic prevention workers, or it is related to the fact that most of them are busy with epidemic prevention work at present. In response to this phenomenon, BAIC Investment decided to postpone this preferential support, "at least three months after the end of the epidemic".

What about the future?

BAIC Industrial Investment Co., Ltd. combed the whole automobile industry after analyzing the impact of the epidemic in detail and combining the strategic planning of the future company. And the result of combing is really full of challenges. Parts manufacturers and OEMs at the production end are faced with difficulties that logistics can't keep up, and it is difficult for personnel to return to work. The long-term rental and online car rental on the operating side are facing the government's suspension, and the demand on the consumer side has dropped sharply due to the difficulty of going out. Some enterprises may not have any business in the first quarter of this year.

Even so, Shi still firmly believes that the difficulties are only temporary. With the introduction of more counter-cyclical control policies and automobile industry support policies, he believes that the business gap in the first quarter is likely to be gradually filled in the second half of the year.

In addition, Shi also found that there are opportunities to be tapped in many challenges. The epidemic situation provides a rare opportunity for the industrial application of forward-looking technologies such as automatic driving, VR car watching and semantic recognition, which greatly accelerates the recognition and application of forward-looking technologies in all walks of life, and embodies the safety and economic characteristics of new technologies and new models.

(VR glasses /Unsplash)

At the beginning of this year, BAIC Investment held an investment strategy meeting and an annual meeting, all of which discussed the investment direction. Finally, it was decided to maintain the overall investment direction of the automobile. At the same time, based on the cross-border nature of smart and new energy vehicles, we will expand investment fields and seize investment opportunities under new vehicles, new infrastructure and new economy.

From the demand side, the mid-to high-end automobile market will hardly be affected by the epidemic. In the low-end market, there are also two different car buyers. Those who just need it will not give up buying a car because of the epidemic, and the number of people who finally postpone buying a car under the epidemic is relatively limited.

Once the epidemic has passed, those growth enterprises that have survived the "cold winter" are expected to thrive.

Editor: zhangyan

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.