Great Wall Motor Co., Ltd. does not make a car -- Great Wall chairman returns from stocks. Feeling at 09:16 on December 24, 2003 The Economic Daily was the first domestic private auto company successfully listed overseas. Great Wall Motor Co., Ltd. has raised its listing in Hong Kong and formally listed. Fast-paced; and the 682-fold oversubscription in Hong Kong's public offering attracted the attention of the industry. Why is Great Wall Motor listed in Hong Kong? How to operate and develop a listed company? Will the original intention of "making 80,000 yuan SUV" changed to a car? With these questions, a few days ago the reporter interviewed Wei Jianjun, chairman of Great Wall Motors, who had just returned from Hong Kong. The choice of Hong Kong for Wei Jianjun, who has been immersed in the automotive industry for decades, understands that the automobile is a "capital, technology-intensive" industry. Although the Great Wall Group has been making profits continuously for more than 10 years, this year's annual net profit has reached a record high, which will be no less than 500 million yuan. However, from the perspective of future development, it is necessary to “strengthen and strengthen the company as soon as possible†to raise funds for listing. The absorption of international capital and experience has become a top priority for Great Wall Motors. Hong Kong was chosen not to be listed in Shanghai or Shenzhen in the Mainland. According to Wei Jianjun, the main reason for listing in Hong Kong is faster. "Although the listing in the Mainland will also be approved, it will often take a few months to wait." It is understood that Great Wall Motor began formal cooperation with France Peregrine in March this year and plans to complete it within six months. It was delayed for three months due to the impact of SARS. Listed in Hong Kong, Wei Jianjun looks at global capital and global markets. "Comparing with the mainland, the refinancing of the Hong Kong market is much simpler," he said. "There are many advantages in listing in Hong Kong and there are higher demands on companies. It can not only optimize the financial structure of the company, but also help improve the company." Brand image." While making full use of the international market financing platform, this is also the beginning of the expansion of the Great Wall to look at the global market. Although the current major market of Great Wall Motors is in China, Wei Jianjun believes that "Made in China will have much to do in the low-end car segment." “Sooner or later one day, the Chinese automobile industry will move into the global market like color TV sets, refrigerators, washing machines, and microwave ovens. Great Wall Motor’s strong response to listing in Hong Kong will also indicate its positioning and competitive advantages as well as the potential for future market development. The recognition and recognition of the international capital market.†Stronger and bigger pickups and SUVs Hong Kong successfully listed, and successfully raised more than 1.5 billion Hong Kong dollars, Great Wall Motor has thus obtained the capital support for the development of the company, but Wei Jianjun still “inadvertently made cars ". “Pickups and SUVs are our strengths. We want to make our business professional, refined, and big.†It is understood that the funds raised by the Great Wall will be mainly used to build new plant areas, increase high-tech facilities for vehicles and engines, produce high-grade pickups and SUVs, and expand existing parts production plants. The production capacity of the entire vehicle and engine will be increased from the current 70,000 and 80,000 units to 150,000 units each. The specific uses are: approximately HK$405 million for the development of new production facilities; approximately HK$186.8 million for upgrading and expansion of engine production facilities; and approximately HK$853.5 million for upgrading and expanding existing parts production plants; and about 0.274 billion yuan Strengthen research and development capabilities; approximately HK$0.189 billion was used to upgrade enterprise information systems; balance was used as general working capital. Bypassing the car and implementing the “sideway breakthroughâ€, the Great Wall has chosen this way. According to Wei Jianjun, “The current market for cars is not only competition from domestic manufacturers but also competition from foreign manufacturers. The competition is fierce. And the economical SUV, the import volume is very small, the market is also very broad, the competition is far less intense than the car market." He counted on the two major advantages of Great Wall Motor: First, most of the competitors' operating scale was significantly smaller, and second, Great Wall Motor did a good job in cost control. "The key components such as the engine, the front and rear axles, etc., Great Wall Motors have Independent development capability can effectively reduce the production cost of fixed units." Wei Jianjun revealed that next year Great Wall Motors will launch a new SUV, the price will be around 120,000 yuan, "This car will pay more attention to the car, multi-function, but also more fashionable, focusing on 4 drive." It is understood that this car is one of the K series cars jointly developed by Great Wall Motors and international professional car companies. More than borrowing brains to build their own brand cars, the Great Wall, like Hafei, Zhonghua and Chery, is on its own way. Continue to consolidate the leading position of Great Wall pickups and SUVs in the industry. This is the dream of Great Wall Motors, which has returned from listing. At present, the Great Wall does not have joint ventures with foreign automakers or foreign auto brands. However, Wei Jianjun said: “The possibility of joint ventures and cooperation will be considered.†And this successful listing in Hong Kong has undoubtedly formed a strategy for Great Wall and multinational companies. The alliance provides a good foundation. (Text/Reporter Li Hui)