The car memory of a generation will soon disappear into the long river of history.

On September 17, Tianjin FAW Xiali Automobile Co., Ltd. (*ST Xiali, 000927.SZ, hereinafter referred to as "FAW Xiali") released the "Significant Asset Sales and Issuance of Shares to Purchase Assets and Raise Supporting Funds and Related Transaction Report", according to

According to the report, if the asset sales and restructuring are successfully completed, FAW Xiali will bid farewell to the vehicle business.

FAW Xiali's restructuring plan mainly includes four parts: the free transfer of FAW Xiali shares held by FAW Co., Ltd., the sale of major assets, the issuance of shares to purchase assets, and the raising of supporting funds.

According to the announcement, FAW Car Co., Ltd. plans to transfer 697,620,651 shares of FAW Xiali held by it (accounting for 43.73% of the total share capital of FAW Xiali before this transaction) to China Railway Materials Co., Ltd. for free.

In addition, FAW Xiali plans to transfer all assets and liabilities it owns, except for 17.5% of Xinan Insurance's equity and retained input tax, to Tianjin FAW Xiali Operation Management Co., Ltd., and FAW Xiali will then sell Xiali Operations to FAW Shares for 100

%? equity and 17.5% equity of Xin'an Insurance.

At the same time, FAW Xiali plans to issue shares to China Iron and Steel Co., Ltd., Wuhu Changmao, Structural Adjustment Fund, ICBC Investment, ABC Investment, Runnong Ruixing, and Eden Fund to purchase the total shares held by China Iron and Steel Materials Co., Ltd.

100% equity of Tianjin Technology, 100% equity of Tianjin Company held by Tiewu Co., Ltd., and 100% equity of Wuzong Trading.

In order to complete the above transactions and supplement operating funds, FAW Xiali plans to raise a total of supporting funds of no more than 1.6 billion yuan.

It is worth noting that after this transaction, FAW Xiali will officially bid farewell to the vehicle manufacturing and sales business, and its main business direction will be changed to material supply chain management and track operation and maintenance technical services, as well as railway construction, focusing on the rail transit industry.

and other engineering material manufacturing and integrated service businesses.

The announcement shows that from 2018 to the first half of 2020, FAW Xiali’s net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses has been negative.

Since June 2019, FAW Xiali's vehicle production has stagnated. In 2019, the vehicle production volume was 1,186 vehicles, a year-on-year decrease of 81.40%; the sales volume was 4,023 vehicles, a year-on-year decrease of 93.69%, and the loss in 2019 was also as high as 1.481 billion yuan.

In order to alleviate operating pressure, FAW Xiali has continued to sell off assets or carry out various restructuring efforts in the past few years.

In October 2016, FAW Xiali transferred its 15% stake in FAW Toyota to FAW Shares in two installments at prices of 2.56 billion yuan and 2.923 billion yuan.

In July 2018, FAW Xiali transferred 100% equity and debt of its wholly-owned subsidiary Tianjin FAW Huali Automobile Co., Ltd. to Byton Motors for 1 yuan.

In November 2019, FAW Xiali established a joint venture with Nanjing Borjun New Energy Vehicle Co., Ltd. (hereinafter referred to as "Bojun") and transferred its vehicle production qualifications, some factories and production equipment, and approximately 800 employees to the joint venture.

Since then, FAW Xiali no longer has production qualifications, and Junpai D60, D80, A50, A70, CX65 and other models will no longer be produced.

Due to continuous losses, FAW Xiali changed its name to *ST Xiali on April 10 this year.

In the first half of this year, FAW Xiali only achieved operating income of 100 million yuan, a year-on-year decrease of 65.25%, and the net profit attributable to the parent company after non-compliance deductions was -243 million yuan.

In addition to FAW Xiali, other sectors of FAW Group have also undergone a series of asset reorganizations since September last year, clearing obstacles for the overall listing of FAW Group.

As the only automobile company among the six major state-owned automobile groups that has not achieved the listing of the entire group, FAW Car and FAW Xiali's passenger car brands (Pentium and Xiali) have always had problems with competition in the industry.

Through a series of asset transfers, some of FAW Car's poorly managed assets have been liquidated, and FAW Xiali will bid farewell to vehicle manufacturing.

"FAW Xiali originally wanted to use Bordrin Auto to revitalize its assets and inject fresh blood to help itself, but it did not expect that Bordrin Auto would collapse. Now FAW Xiali has no choice but to say goodbye to vehicle production and sales. With FAW Xiali

"Withdrawal will have no impact on FAW Group's overall listing. However, FAW Group's problems are more complicated and it will still not be able to achieve overall listing in the short term," an automobile industry person told reporters.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.