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Changhe announced recently that it will sell more than 100 million yuan in assets for restructuring. This shows that Changhe Motors, which is already facing the risk of delisting, is making final decisions.
On June 10th, *ST Changhe announced that it will sell part of its assets, including buildings, machinery and equipment to Jiangxi Changhe Aviation Industry Co., Ltd., a wholly-owned subsidiary of AviChina, worth approx. 100 million yuan.
Eight days later, Changhe Automobile announced the suspension of the company's announcement that it had received notification from the controlling shareholder AVIC, and that AviChina was planning to reorganize the company’s assets. The company plans to convene a board meeting to review major asset restructuring plans within 30 days after the announcement. The announcement did not disclose any specific content of the reorganization.
However, Changhe Motors hastily issued a reorganization announcement, apparently related to the merger of two major aviation industry groups in China. Last week, China Aviation Industry Corporation No.1 and China Aviation Industry Corporation No.2 officially launched the strategic restructuring of the two major groups. The new company will be named China Aviation Industry Corporation. The main products of the two major groups are: military and civilian fixed-wing aircraft and helicopters, air-to-air missiles and surface-to-air missiles, airborne equipment, aero-engines, gas turbines, and automobiles. Among them, Hafei shares and Changhe Aviation, both of which are subsidiaries of the Second Group, are the major helicopter manufacturers in China. Hafei Motors and Changhe Motors are mini vehicle manufacturers.
Currently, AviChina is operating a joint venture with Dongfeng Motor, and Dongfeng Motor will merge or acquire Hafei Motor to build a microcar platform. The sustained loss of micro-vehicle business may also be stripped from Changhe Automobile and incorporated into the mini vehicle platform. The restructured China Aviation Industry Corporation may inject helicopter operations into the empty shell of Changhe Automobile.
View related topics: Dongfeng Group announced that it will hold "Hafei" 
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