The Riddle of Changfeng Auto's reorganization will be revealed as early as this week with Guangzhou Auto

The rumor has been long Changfeng Motor (600991) reorganization matters in the recent days will be seen.　　According to media reports, Guangzhou Auto Group in the battle with Baic won, in order to control the purchase price, will be the earliest May 23 in the reorganization matter quickly and the formal signing of Changfeng motor. According to the April release of the automotive industry Revitalization plan, the State for the first clear deployment of mergers and acquisitions ——— "to encourage Faw, Dongfeng, SAIC, Changan and other large automotive enterprises in the country to implement mergers and acquisitions, support Baic, Guangzhou, Chery, heavy truck and other automotive enterprises to implement regional mergers and acquisitions."　　"For years, the country's fifth-largest auto group, GAC, has been hoping to play a role as a restructuring leader in South China, with both Changfeng and the group as their targets." Changfeng Motor announced yesterday, received by the holding shareholder Changfeng (Group) Limited liability company's letter, said Changfeng Group intends to undertake the reorganization of assets, and signed a major agreement, the content of the agreement on the company's ownership structure of the major changes in the relevant matters, Changfeng motor stock from today onwards, until the parties concerned formally signed the agreement　　, no more than five trading days, the company announced the latest information on May 26 and the application of its stock license. According to the Securities and Futures Commission, the purchase price among enterprises is 90% of the average price within 20 days before the official announcement.　　And in the last half month, Changfeng Auto share price from April 29 8.99 Yuan lowest, rose to May 15 14.19 yuan of the highest point, up to 57.8%. Data show that Changfeng car has long been mired in overcapacity, all of its Yongzhou, Changsha two major production bases, with an annual output of 100,000 units of capacity. But in the February 28 annual report of Changfeng Motor released 2008, the company realized operating income of 4.708 billion yuan in 2008, the whole year net profit fell 23.44%, sales vehicle for only 26,000 vehicles, its capacity effective utilization is still less than 30%.　　This shows that the main SUV business of Changfeng Motor encountered a development bottleneck. Analysis of the industry, Guangzhou and Changfeng not only the geographical proximity, in the business also has a strong complementarity, eager to expand the Guangzhou auto is lack of Changfeng is good at the SUV business, and Changfeng's listed company Shell Resources on the listing has been frustrated by the Guangzhou Auto is also a great temptation.