With the more clear restructuring plan of * ST Xiali (000927, SZ; previous closing price of 4.12 yuan; hereinafter referred to as FAW Xiali), FAW Xiali is accelerating its exit from the market. According to the announcement issued by FAW Xiali on September 17, FAW Xiali plans to issue shares to 8 enterprises including China Railway Materials Co., Ltd. (hereinafter referred to as tiewu Co., Ltd.) and purchase 100% equity of China Railway Material Co., Ltd. and other enterprises. The share issuance price is 3.05 yuan / share, which is not less than 90% of the average trading price of the company’s shares in the 20 trading days before the pricing benchmark date. < / P > < p > next, FAW Xiali plans to raise matching funds through non-public offering of shares from no more than 35 qualified specific investors, including tiewu shares. The total amount of supporting funds raised shall not exceed 1.6 billion yuan, of which, the planned subscription amount of tiewu shares shall not exceed 400 million yuan. < p > < p > previously, FAW Xiali announced that FAW Xiali plans to transfer 697 million shares of the listed company it holds, accounting for 43.73% of the total share capital of FAW Xiali before the transaction, and transfer it to tiewu shares free of charge. It is understood that, in view of the poor overall operating condition of the assets to be sold, the transaction price of FAW Xiali’s assets to be sold is determined as 1 yuan after negotiation among all parties and referring to the evaluation value of assets to be sold assessed and filed by SASAC of the State Council. < p > < p > some analysts believe that the reason why the transaction price is determined as 1 yuan is related to FAW Xiali’s continuous large-scale losses in recent years. As of March 31 this year, the net assets of FAW Xiali were – 1.486 billion yuan. In 2018, FAW Xiali transferred 15.00% equity of Tianjin FAW Toyota Motor Co., Ltd., resulting in a net profit of about 37.3 million yuan belonging to the shareholders of the parent company. < p > < p > from June 2019, FAW Xiali vehicle production stagnated. In 2019, the company’s automobile production volume was 1186, a year-on-year decrease of 81.4%; the sales volume was 4023, a year-on-year decrease of 93.69%. The stagnation of production led to a sharp contraction in the main business scale of FAW Xiali in 2019, and FAW Xiali suffered a loss of 1.481 billion yuan in the whole year. In November 2019, FAW Xiali established a joint venture with Nanjing Bojun New Energy Automobile Co., Ltd. (hereinafter referred to as Tianjin Bojun), and transferred the vehicle production qualification to the joint venture in January 2020. The company no longer has production qualification, and junpai D60, D80, A50, A70, CX65 and other models will no longer be produced. As it no longer carries out vehicle manufacturing, FAW Xiali’s net profit attributable to the parent company after deducting non-profit in the first six months of this year was – 243 million yuan. < / P > < p > this makes it difficult for FAW Xiali to obtain high prices for the assets to be sold this time. As of April 30 this year, among the assets to be sold in this transaction, the net assets of Xiali operation are – 1.86 billion yuan, the net assets of Xin’an insurance are 1.223 billion yuan, and the total net assets corresponding to 17.5% equity of Xiali operation and Xin’an insurance are – 1.646 billion yuan. < p > < p > in the era of the rise of family cars at the end of the last century, FAW Xiali also had a great reputation. In September 1986, the first Xiali automobile imported and produced in full bulk was put off the production line. In 1990, the first three compartment Xiali was put off the production line and sold for 100000 yuan. It became a “luxury” that only a few consumers could own. Consumers were proud of being able to buy Xiali. < p > < p > Xiali, once the pioneer of “national car”, has occupied the sales champion for 18 consecutive years. Around 2000, Xiali’s taxi market share was as high as 40% and 70% in Beijing. In 2004, the Xiali brand announced that one million cars were offline. In 2011, FAW Xiali sales reached the peak of 253000 vehicles. But since then, Xiali has fallen rapidly and is hard to find in the street. < p > < p > the overall sales volume of FAW Xiali has been declining since 2012, and the downward trend is becoming more and more intense. From 2012 to 2015, FAW Xiali’s annual sales volume was 185000, 135000, 72000 and 64000 respectively; in 2016, FAW Xiali’s cumulative sales volume was only 37000, with a year-on-year decrease of 43.3%. < / P > < p > the decline in sales directly leads to a sharp drop in corporate profits. In 2013 and 2014, FAW Xiali lost 479 million yuan and 1.659 billion yuan respectively. In 2015, its non net profit was – 1.182 billion yuan. In 2016, its net profit after deducting non recurring profit and loss was – 1.676 billion yuan, a year-on-year decrease of 41.86%. < p > < p > with the completion of the asset restructuring, FAW Xiali will withdraw from vehicle manufacturing. According to the report, with the injection of assets to be purchased, after the completion of the transaction, FAW Xiali’s main business will be changed to the material supply chain management, rail operation and maintenance technical services, railway construction and other engineering materials production, manufacturing and integration services. Global Tech