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 North Industries Group Corporation (NORINCO) in restructuring its listed company resources, with restructuring, overall listing, and asset injection as ongoing actions.

　　Restructuring and Integration Imminent

　　In fact, NORINCO's restructuring of its listed companies and injection of high-quality assets is not a rumor, but a commitment the group has already made. Last November, ST Qingqi implemented share reform and resumed trading. In the share reform plan, NORINCO proposed that within 24 months of the trading date after the share reform, it would submit an asset restructuring plan to the shareholders' meeting to inject high-quality operating assets or replace 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 NORINCO and General Manager of Southern Automobile, attended the signing ceremony for the land reserve of Chongqing Huxi Electric Motor Factory and revealed that China North Industries Group Corporation is currently planning a new cooperation with our city. In the latter half of this year, NORINCO will integrate its three major motorcycle manufacturing enterprises, China Jialing, Jian She Motorcycle, and Jinan Qingqi, to establish China Motorcycle Manufacturing Industry Group Company.

　　"The headquarters of this motorcycle group will be located in Chongqing." Huang Qifan said that Chongqing will then become a Chinese motorcycle industry base. Combined with the city's existing privately-owned motorcycle companies, the annual motorcycle production is expected to exceed ten million units.

　　Clearly, the information from two channels confirms one thing: the time window for NORINCO to integrate its listed companies is likely to be the second half of this year.

　　Three Companies Issue Clarifications

　　Interestingly, after the news of "establishing a larger Chinese motorcycle group" was released, Jialing, Jian She, and Jinan Qingqi issued clarification announcements respectively.

　　China Jialing stated that there is no undisclosed information or other information that may have a significant impact on the stock price, such as intent agreements or negotiations, within 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 NORINCO's share reform commitment currently has no specific plan or specific implementation schedule.

　　In its clarification announcement, Jianmo B explicitly admitted that the controlling shareholder, China Southern Industrial Group Corporation, intends to centralize and 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 NORINCO, was officially renamed "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 NORINCO, with total assets exceeding 51 billion yuan.

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

　　Three Conjectures on the Restructuring Route

　　Various signs indicate that NORINCO's restructuring roadmap has become basically clear, and we can make some bold conjectures.

　　First, NORINCO will definitely optimize and integrate its motorcycle resources. Among the three listed motorcycle companies, China Jialing, ST Qingqi, and Jianmo 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 layout. In the current trend of B-share repurchase and return to A-shares, the possibility of NORINCO injecting other assets into Jianmo B is minimal. As for ST Qingqi, NORINCO has promised to inject high-quality operating assets or replace related assets for asset restructuring. Given that NORINCO has clearly stated that it will place its motorcycle headquarters in Chongqing, ST Qingqi is obviously unlikely to receive an injection of motorcycle assets.

　　It can be boldly predicted that NORINCO will restructure Jialing, Jian She, and Jinan Qingqi, and unify the three companies' motorcycle assets into China Jialing. It is even possible that the company will be renamed "NORINCO Motorcycle".

　　Secondly, Southern Automobile, which has been seeking an overseas listing without success, has restarted its overall listing process after being renamed Changan Automobile Group.

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

　　Another possibility is that if Southern Automobile's overall listing fails, the renamed Southern Automobile will inject the overall assets of the new Changan Group into the listed company Changan Automobile. Through Changan Automobile's repurchase of the parent company's assets, etc., it will use Changan Automobile's shell resources to achieve the overall listing of Changan Automobile Group.

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