The amount of bonds issued in August was higher th

Car companies are in a shortage of money, and the amount of bond issuance in the first eight months is higher than that of last year. Photo source: network, infringement, please contact to delete

participate in international competition. The cold current in the car market is entrenched. Car companies have taken strange measures to survive the winter. Some people cut jobs and reduce production, save food and clothing, some people cut meat to survive, and huddle together to get warm. There is a phenomenon of particular concern. Since this year, car companies' bond issuance has increased significantly, and the amount of bond issuance in the first eight months even exceeded that of last year. Among them, many new faces of the bond issuance team, including Geely Great Wall, the head independent brand car company, have also joined this ranks, while SAIC Group, the leading company that has not issued bonds for more than a decade, plans to issue bonds at a large amount of 20billion yuan

the long-term low-level operation of the car market is gradually having a deep impact on car enterprises

the huge amount of bond issuance team has exceeded that of last year

from September 18 to 19, SAIC Group issued the first corporate bond "19 SAIC 01" to qualified investors, with a coupon rate of 3.42%, and the actual issuance scale was 3 billion yuan. Previously, SAIC Group announced that the company plans to apply for the issuance of corporate bonds of no more than 20billion yuan (including) in the form of shelf issuance. Subsequently, the proposal was passed by a large number of votes at the general meeting of SAIC Group on August 9

picture source of issuing the first phase of corporate bonds: SAIC Group announcement

in fact, compared with previous years, this year's bond issuance team of car enterprises is very large. In addition to "regular customers" BYD, great wall and Geely have also become new faces. At the beginning of this year, Great Wall Motors registered a bond issuance limit of 4billion yuan, and has now used 2billion yuan; Geely, which did not issue bonds in the same period of the previous two years, also issued 6billion yuan of bonds this year, including an ultra short-term loan of 2.5 billion yuan and a medium-term note of 3.5 billion yuan

since the beginning of this year, BYD has successively issued 3billion yuan of corporate bonds, 1billion yuan of corporate bonds, and 11billion yuan of ultra short-term financing, with a scale more than 50% higher than that of the same period last year; On the 12th of last month, BYD completed the issuance of the second phase of corporate bonds this year, with a scale of 2.5 billion yuan, and the 11th phase of 1billion yuan ultra short-term financing also ended on the 22nd of that month

of course, these leading auto companies are only the epitome of this year's wave of bond issuance in the auto market. Car companies such as brilliance auto, BAIC bluevale, BAIC shares, and Weilai are all "shining" in this team. According to wind, a third-party data platform, as of mid August this year, the total amount of bonds issued by domestic auto enterprises has reached 66.4 billion yuan, exceeding the total amount of bonds issued last year by 66 billion yuan

in the downward environment of the auto market, a series of financing operations of auto enterprises can not help but make people think of "winter". As a heavy asset industry with rapid growth for 28 consecutive years, due to the diversity of financing channels, the automotive industry has rarely seen such a large-scale bond issuance before. Now, in the downward cycle of the auto market, bond financing seems to be a popular open source means

dragged down by the downturn in the car market and declining performance

"personally, the tide of corporate bond issuance is mainly affected by the market downturn and the decline of corporate performance." Ren Wanfu, a senior auto industry analyst, said in an interview with times finance

according to the latest data of China Automobile Association, the cumulative sales volume of passenger cars in the first eight months of this year was 13.322 million, a year-on-year decrease of 12.3%; Meanwhile, in the latest national economic "report card", the growth rate of total retail sales of social consumer goods fell slightly by 0.1 percentage points from the previous month, dragged down by the year-on-year decline of 8.1% in automobile consumption

the semi annual reports of car companies just released at the end of last month were also full of coolness. In terms of the performance of the 17 mainstream listed auto companies counted by times finance, the situation is difficult to be optimistic. Only three auto companies' net profits are growing, and many auto companies' net profits have suffered a triple-digit plunge. In addition, the operating cash flow of 9 auto enterprises, including Dongfeng Group, BAIC bluevale, GAC group, BYD, JAC, etc., is negative, and cash is tight

the market situation of passenger cars is "cooling down" month by month. To spend the long winter, money and food must be prepared; The car market is in a downward cycle, and the relatively abundant cash flow is also particularly valuable

Great Wall Motors said in an interview with times finance that we not only want to avoid this, but also want to raise 4billion yuan through the registration of ultra short-term financing bills, which will be used to repay the bank loans of the company's headquarters and its subsidiaries, so as to adjust the debt structure and reduce the financing cost

photo source of Great Wall Motors: taken by Pan Zhuolun of times finance

in fact, car enterprises mainly have four types of financing channels, including additional issuance, fixed increase, bond issuance and bank loans. The first two are usually only applicable to listed companies. This year, the regulatory authorities have been very strict in the review of additional issuance, and it is not easy to issue fixed issuance when the market turns cold. Due to the impact of the general environment, bank loans are also tightening

in contrast, the choice of bond issuance financing, on the one hand, the issuance method is easier to pass, and the efficiency is also high; On the other hand, compared with bank interest rates, the cost of issuing corporate bonds will be lower because its thermal conductivity and corrosion resistance reach the level of silver

"personally, the current financing environment of car enterprises is not ideal. Due to the impact of performance, the issuance of new shares or fixed increase are more limited. Corporate bonds are conducive to improving financing efficiency." Ren Wanfu told times finance

is the normal behavior of enterprises or storing grain for the winter

"lack of money." Caohe, Secretary General of the all China Federation of industry and Commerce Automobile Chamber of Commerce, said in an interview with times finance that the automobile market is bad, direct financing is difficult, loans are tight, and it is increasingly difficult to occupy funds in the industrial chain

however, in the past eight months, the wave of bond issuance of car enterprises, the large scale, large amount and other signs also seem to show that car enterprises, regardless of whether they are short of money, all those who meet the credit rating and are qualified to issue bonds want to issue bonds

some analysts believe that the large-scale debt issuance tide of car enterprises also reflects from the side that because the car market is cold, the electronic tensile testing machine of car enterprises is composed of measuring system, driving system, control system and computer (computer system tensile testing machine) to store grain for the winter. Taking SAIC Group as an example, the 20billion yuan bond issuance amount is its second bond issuance after 11 years after the issuance of 2billion yuan medium-term notes in 2008. This move is also interpreted by the outside world as "capital pressure" and "grain storage for the winter"

however, Ren Wanfu doesn't agree with the saying of storing grain for the winter. The purpose of issuing bonds by enterprises is generally for research and development, expanding production and operation and other places conducive to the development of enterprises, giving buyers confidence. "The theory of winter gives people that the enterprise has experienced operating difficulties. In this case, who will buy your bonds?"

Zhang Xin, chief automotive analyst of Guotai Junan Securities, also expressed the same view. In an interview with times finance, he said that the automotive industry is capital intensive and technology intensive, and the average debt ratio of auto enterprises is about 60%, so issuing bonds is a relatively normal business behavior

"the ultra short-term financing issued this year is a replacement of the old financing instruments, not an expansion of the financing scale to 'store grain' for the future. In the future, the company will continue to explore more favorable direct financing instruments in the capital market and realize the diversification of financing structure." As a "new force" participating in bond issuance this year, Great Wall Motors said in an interview with times finance

"isn't it better to make money with other people's money than with your own money?" Zhang Xin pointed out to times finance that "the purpose of issuing bonds should be explained, and the actual purpose will be subject to supervision. Whether anyone buys depends on the strength of car companies. For example, there is a lack of market for huge and Lifan bonds"

editor's note

the cold wind in the car market has made price cuts, lower sales targets, adjust the model structure, stop production and layoffs, sell assets, issue bonds... Become the high-frequency words in the auto industry this year; In the newly released "report card" of the national economy in August, cars continued to be the biggest drag on the growth of retail sales of social consumer goods with a year-on-year decrease of 8.1%. The car market is not only ushering in an inflection point, but also standing at a new starting point. The auto channel of times finance and economics will launch a series of reports on "winter" from macro to micro, from phenomenon analysis to outlet discussion, and inject rational thinking into the development of the auto industry by in-depth analysis of the living beings of auto enterprises

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