Chongqing and Shandong's four major military equipment and automobile giants are restructuring and seeking change.

　　The latter half of this year may be an exciting time, as several listed companies, including Changan Automobile, China Jialing, ST Qingqi, and Jian She Motorcycle, may undergo a series of major adjustments or changes. Unless unexpected, this will be a significant step for the China Ordnance Equipment Group (Group) in restructuring its listed company resources; restructuring, overall listing, and asset injection will be continuous processes.

　　Restructuring and Integration Imminent

　　In fact, the Group's restructuring of its listed companies and injection of high-quality assets is not mere speculation, but a commitment the Group has already made. Last November, ST Qingqi underwent shareholding reform and resumed trading. In the shareholding reform plan, the Group proposed that within 24 months of the trading date after the completion of the reform, it would submit an asset restructuring plan to the shareholders' meeting to inject high-quality operating assets or exchange related assets into the company. According to this statement, November 5th of next year will be the deadline.

　　To corroborate this, on June 30th, Huang Qifan, Standing Committee Member and Executive Vice Mayor of the Chongqing Municipal Committee, and Yin Jiaxu, Deputy General Manager of the Group and General Manager of Southern Automobile, attended the signing ceremony for the land reserve of the Chongqing Huxi Electric Motor Factory and revealed that the China Ordnance Equipment Group is currently planning a new cooperation with Chongqing. In the latter half of this year, the Group will integrate its three major motorcycle manufacturers—China Jialing, Jian She Motorcycle, and Jinan Qingqi—to form a China Motorcycle Manufacturing Industry Group Company.

　　"The headquarters of this motorcycle group will be located in Chongqing," said Huang Qifan. At that time, Chongqing will become one of China's largest motorcycle industrial bases. Combined with the city's existing privately owned motorcycle companies, the annual motorcycle production is expected to reach tens of millions of units.

　　Clearly, the information from these two sources confirms one thing: the time window for the Group to integrate its listed companies is likely to be the latter half of this year.

　　Three Companies Issue Clarifications

　　Interestingly, after the news of the "establishment of the China Motorcycle Group" was released, Jialing, Jian She, and Jinan Qingqi separately issued clarification announcements.

　　China Jialing stated that there is no undisclosed information or other information that may have a significant impact on the stock price in the next three months. However, the announcement does not rule out the possibility of major restructuring or other asset injections after October this year.

　　ST Qingqi stated that the Group's shareholding reform commitment currently has no specific plan or schedule.

　　In its clarification announcement, Jian Mo B explicitly acknowledged that the controlling shareholder, China Southern Industries Group Corporation, intends to centrally optimize its motorcycle resources, but there is no specific implementation plan or schedule, and the integration within the year remains uncertain.

　　Interestingly, on July 1st, China Southern Industrial Automobile Co., Ltd., a subsidiary of the Group, was officially renamed "China Changan Automobile Group Co., Ltd." This is a super-large automobile group including Changan Automobile Co., Ltd., Qingshan Transmission, and more than 20 other vehicle and parts companies under the Group, with total assets exceeding 51 billion yuan.

　　With listed companies confirming the Group's intention to integrate motorcycle resources, and Southern Automobile, which has been eager for a comprehensive listing, changing its name, it is clear that the Group has begun a "major operation" on its three A-share listed companies: Changan Automobile, China Jialing, and ST Qingqi.

　　Three Conceptions of Restructuring Routes

　　Various signs indicate that the Group's restructuring roadmap is basically clear, and we can make some bold assumptions.

　　First, the Group will definitely optimize and integrate its motorcycle resources. Among the three listed motorcycle companies—China Jialing, ST Qingqi, and Jian Mo B—China Jialing is undoubtedly the most likely platform for asset integration. The reason is simple: China Jialing has high brand recognition and reputation, and has already established factories in Brazil, Indonesia, and Colombia, expanding its global presence. Given the current trend of B-share repurchase and return to A-shares, the possibility of the Group injecting other assets into Jian Mo B is minimal. As for ST Qingqi, the Group has promised to inject high-quality operating assets or exchange related assets for asset restructuring. Given that the Group clearly intends to locate the motorcycle headquarters in Chongqing, ST Qingqi is also unlikely to receive motorcycle asset injections.

　　It is reasonable to assume that the Group will restructure Jialing, Jian She, and Jinan Qingqi, and consolidate the three companies' motorcycle assets into China Jialing. It's even possible that the company will be renamed "Ordnance Motorcycle".

　　Secondly, Southern Automobile, which has been unsuccessful in seeking an overseas listing, has restarted its path to overall listing after being renamed China Changan Automobile Group.

　　In fact, before the name change, starting June 23rd of this year, Changan Automobile began a large-scale repurchase of B shares. By July 2nd, Changan Automobile repurchased 423 million B shares, and Southern Automobile's shareholding ratio in Changan Automobile increased to 55.63%, achieving absolute control. Obviously, after completing the repurchase and achieving absolute control, the announcement of Southern Automobile's name change laid the groundwork for the future overall listing of China Changan Automobile Group.

　　Another possibility is that if Southern Automobile's overall listing fails, then Southern Automobile after the name change will inject the overall assets of the new Changan Group into the listed company Changan Automobile, using Changan Automobile's shell resources to achieve the overall listing of China Changan Automobile Group through methods such as Changan Automobile repurchasing the parent company's assets.

　　As for ST Qingqi, the remaining shell resource after the injection of motorcycle assets into China Jialing, the Group can inject other high-quality assets, such as new energy or even military products.