Beijing Automobile Works (BAW) Introduction

[dmitra]

Beijing Automobile Works (Qingdao) Co., Ltd., a new company founded in May 2020, held a groundbreaking ceremony for a new complete vehicle manufacturing base in Laixi City, Qingdao, Shandong on July 6th. BAW (Qingdao) will invest up to 2.15 billion USD in the entire project. The facility will manufacture engines, parts, and complete vehicles, both conventional and new energy. The engine facility will have the capacity to produce 700,000 engines annually, in technical collaboration with Liuzhou Wuling Liuji Power Co., Ltd. (of the Guangxi Auto Group) and South Korea's Blue Planet Co., Ltd.

The vehicle manufacturing plant will have a production capacity of 50,000 vehicles annually in Phase I, rising to 250,000 in Phase III. The vehicle project will require an investment of 1.6 billion USD (out of the total), of which 1.1 billion USD will be spent in construction of the first phase. The complex will also include an industrial park making parts.

https://www.sohu.com/a/406062084_118392

Now for the twist:

BAW (Qingdao) is promoted by Qingdao Fulu Investment Holding Group Co., Ltd., which holds 92% of the company. Qingdao Fulu Investment Holding is owned by Fulu group chief Lu Fujun. On May 26th, just 20 days after its establishment, BAW (Qingdao) acquired 51% of Beijing Automobile Works Co., Ltd. from owner and former general manager Yao Changsheng. Previously Mr. Yao used to hold 87.5% of BAW through Beijing Automobile Assembly Factory. At present, his holding has come down to 39.7% through two entities, Beijing Automobile Assembly Factory [31%] and Beijing Auto (Huanghua) Parts Co., Ltd. [8.7%]. Another minor shareholder, Shanghai Qinyong New Energy Development Co., Ltd., has seen its shareholding come down from 12.5% to 9.3%. Moreover, the registered capital of Beijing Automobile Works Co., Ltd. has been increased from 248 million RMB to 700 million RMB.

It has been reported that Beijing Automobile Works Co., Ltd. will vacate the manufacturing plant in Huanghua (in Hebei), which BAW currently shares with BAIC BluePark, and relocate its operations completely to Laixi in two to three years when that facility is ready. Interestingly, BAIC BluePark also has a vehicle factory in Laixi.

[Leo]

This is indeed quite the bombshell.

I read somewhere that Beijing Automobile Works Co., Ltd. had dropped the Beijing brand name and the cars were marketed as BAW instead. I was wondering about that, but this development seems to explain it.

Your wonderful digging into the ownership situation does raise a few questions for me.
Some googling took me to the press release of the Laixi government. If the translation is right, the shareholding is now as you describe, but it's the intention of Fulu/BAW Qingdao to increase it's shareholding to 90,7%. That suggests they want to buy out mr. Yao Changsheng altogether.

Which brings me to another thing. In my research of BAW I have the following information, which I think is reliable:
-The current Beijing Automobile Works Co., Ltd. was established in 2001 as joint venture of BAIC Group (33%) and Yao Changsheng/Beijing Automobile Assembly Factory (67%)
-In late december 2008 BAIC Group acquired 18% from mr Yao, bringing the ratio to BAIC 51%, Yao 49%.
-After that, I noted no further developments.

Now before Fulu bought BAW mr. Yao apparently owned 87,5% (and this Shanghai Qinyong entity 12,5%), which seems to suggest that BAIC Group already sold it interest before the developments of recent weeks. In january or february of this year BAW cars were being re-registered in the MIIT notices with a BAW-code instead of the usual BJ-code. Would it be safe to assume that BAIC Group already got rid of its BAW-shares by then (sold them to Yao and Shanghai Qinyong) without telling anyone?!

[dmitra]

On June 28, after mutual agreement between the two parties, it is planned to increase the shares by 39.7% (90.7% of the total holding) and relocate all the qualifications of BAIC Manufacturing to our city.

On June 28, the two parties agreed to increase shares by 39.7% (total holding 90.7%) and relocate all qualifications of BAIC Manufacturing to Laixi, Qingdao.

The Laixi govt. release and the Sohu article I linked state the above (in translation). The wording perhaps lends itself to ambiguity. One has to implicitly assume that the acquirer will increase the shares by 39.7% to a total of 90.7%. Currently Fulu group and Mr. Yao own 90.7% together.

Beijing Automotive Group Co., Ltd. (a.k.a. Beijing Automotive Industry Holding Co., Ltd.) exited BAW in October 2010, handing over its 51% shareholding to BAIC Motor Corporation Ltd.

BAIC Motor Corporation Ltd. exited BAW in November 2012, handing over its 51% shareholding back to Beijing Automotive Group Co., Ltd.

Beijing Automotive Group Co., Ltd. finally exited BAW in May 2016. After this point, Mr. Yao (or more correctly, Beijing Automobile Assembly Factory) probably held 100% for some time. I can't find out when Shanghai Qinyong NEDC Ltd. entered BAW, but it was founded in September 2016, and articles in 2019 (such as this) were already documenting Shanghai Qinyong as a shareholder owning 12.5%.

[Leo]

Yes, I agree something is lost in translation with respect to the shareholding of BAW.

Did some searches in my coffee break and found this website that claims Shanghai Qinyong is a wholly owned subsidiary of a company called Shanghai Yongshi Automobile Development Co, Ltd. (上海勇士汽车发展有限公司) Can't find anything about that company though, except for an ancient looking logo with the name translated as YS Auto Group.

[Lawrence]

In recent years I have noticed a distinct difference in quality of the Daimler affiliated "Beijing" brand, and the "Beiqi" or BAW brand models. I think that BAIC is moving to distance itself from BAW, and will eventually spin off the brand completely.
It's an interesting development since BAW was at the heart of this automakers beginnings from 1953, and the birthplace of the first Western-China auto joint ventures, in 1983, that is, Beijing Jeep.