Encountering delisting crisis, Tianjin FAW Xiali (*ST Xiali) published its Q3 financial announcement recently, with a great loss of 850 million RMB, ranking No.1 in the automobile industry.
In fact, *ST Xiali’s performance is disappointing for two years. Under huge pressure, it has taken several measures to avoid been delisting, from changing the management to launching leading product D60, from adopting self-helping measures to sharing brands with FAW Jilin. Trying to carry out multi-brand strategy, *ST Xiali has taken great efforts to make up deficits and save the brand. However, with coming end of 2015, perhaps it is the time for *ST Xiali to leave the capital market.
Professionals have an identical view that *ST Xiali, which has losses for two consecutive years, has litter possibility to protect its shell with its own efforts, and regrouping is settled. Jia Xinguang, top analyst of China Automobile Industry Consulting and Developing Co., believes that license of producing car is *ST Xiali’s biggest selling point and capital.
To know more about the company’s current situation, reporters from Securities Daily phoned the Secretary of Board repeatedly recently, and relevant personnel said all the company businesses had been published in announcements, and no other information would be provided. After repeatedly requests, reporters got designated e-mail and were told interviewing questions could be sent to this e-mail, waiting for Secretary of Board’s answer after his back. However, till now, no e-mail answer has been received yet.
Data from Royal flushiFind revealed that, *ST Xiali has a net loss of 480 and 1,660 million RMB respectively in 2013 and 2014, and its 2015 loss has reached 850 million RMB in the previous three quarters.
In the meantime, several sedan brands under *ST Xiali such as Xiali, Vita also face substantial decrease in sales volume, especially Xiali brand. Production and selling report published by the company shows that *ST Xiali’s sales volume in September alone decreased to 3,759, among which, Xiali’s sales volume decreasing 66% to 1,333, Vita’s sales volume decreasing 60% to 552, and D60’s sales volume totaling 1,874.
