Haima Automobile sells its houses to save itself, FAW completely withdraws, and its equity is transferred to Hainan Holdings

Haima Automobile, which has attracted attention due to its huge losses and selling houses to save itself, has ushered in new changes.

On the evening of July 20, Haima Automobile issued an announcement that Haima Automobile Co., Ltd. received a notice from China First Automobile Co., Ltd., a minority shareholder of its holding subsidiary FAW Haima Automobile Co., Ltd., that upon approval, the 49% equity of Haima held by China First Automobile Co., Ltd. will be transferred free of charge to Hainan Development Holdings Cable Company.

After this equity transfer, the proportion of FAW Haima shares held by Haima Automobile will remain unchanged at 51%, but the remaining 49% will be held by Hainan Holdings.

Against the backdrop of the Hainan Free Trade Zone, Haima Automobile, as Hainan's only complete vehicle manufacturer, will usher in new development opportunities under its second largest shareholder, Hainan Holdings.

Haima Automobile, founded in 2004, was once a star among China's independent brands, with annual sales revenue exceeding 10 billion yuan. However, due to operational reasons, Haima Automobile was on the verge of bankruptcy in 2017.

Haima Automobile, whose performance suffered a cliff-like decline, was delisted in 2019. In order to save itself, Haima Automobile sold more than 400 properties in Haikou and Shanghai. In 2020, FAW Haima turned losses into profits and successfully removed the delisting. However, the industry generally believes that selling idle properties is only a temporary solution for Haima Automobile, which has been losing money continuously.

With the implementation of this equity transfer, Haima Automobile may be able to use the construction of the free trade port and the new energy vehicle promotion policy as a starting point to strengthen the research and development and manufacturing of pure electric, plug-in hybrid and hydrogen energy vehicles, thereby solving its own performance problems and opening up the situation for Hainan's automobile industry.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.