SNAT plans to invest 666 million yuan in the restructuring of SAIC Hongyan
SNAT announced that it will invest 666 million yuan to participate in the restructuring of SAIC Hongyan, forming a consortium with SAIC Motor and other investors, and is expected to acquire a 14.66% equity stake. This restructuring aims to resolve Hongyan's debt risks, optimize the company's debt structure, and enhance operational value. As a leading manufacturing enterprise in Chongqing, SAIC Hongyan has restructuring value and will form industrial synergy with SNAT's engine business in the future
According to the Zhitong Finance APP, SNAT (600841.SH) announced that in order to maximize the operational value of SAIC Hongyan, the company approved the formation of a consortium (referred to as the "Consortium") with SAIC Motor Corporation, Chongqing Liangjiang New Area High-Quality Development Industry Private Equity Investment Fund Partnership (Limited Partnership) (referred to as "Liangjiang Investment"), and Chongqing Development Asset Management Co., Ltd. (referred to as "Chongqing Development") at the third extraordinary meeting of the board of directors held on September 29, 2025. The company will invest CNY 666 million to participate in the restructuring of SAIC Hongyan, and it is expected that the company will acquire a target equity stake of 14.66% in SAIC Hongyan after the restructuring. The total investment of the Consortium will be CNY 3 billion, and it is expected to acquire a target equity stake of 66% in SAIC Hongyan after the restructuring (the specific equity ratios mentioned above are subject to the data in the restructuring plan as determined by the court).
As a high-tech enterprise in Chongqing and one of the leading manufacturing enterprises in the city, SAIC Hongyan has brands such as Hongyan Jieshi, Hongyan Jiebiao, Hongyan Jieke, Hongyan Jingang, and Hongyan Jietu, covering a wide range of models including tractors, dump trucks, cargo trucks, and special vehicles, and has a high level of market recognition. SAIC Hongyan has significant advantages in the dump truck sector and also has market opportunities in exports and the new energy market. Although it is insolvent, it possesses certain restructuring value. After a successful restructuring, there will still be some industrial synergy between SAIC Hongyan's complete vehicle business and the company's engine business. The company aims to resolve Hongyan's debt risks and maximize the operational value of SAIC Hongyan while meeting the funding needs for the future development of the company's non-heavy truck business (engine, new energy, etc.) by jointly forming a consortium with SAIC Motor Corporation and other relevant parties to participate in the investment for the restructuring of SAIC Hongyan, which is beneficial for optimizing the company's debt structure and alleviating operational pressure
