Dongfeng Yulong was established in 2010. It is the result of joint efforts of car companies across the Taiwan Strait. You may feel unfamiliar with this name, but you must have heard of its main product - Nazhijie . The memes such as "Two-barrel strategic partners", "charity companies that support the car repair man at the door", and "used car dealer killer" have been popular in the car circle for many years. In the final analysis, these are all summary of many quality issues of car friends, and news about its bankruptcy has also appeared from time to time in the past two years.
Recently, Dongfeng Yulong officially released the "Dongfeng Yulong Automobile Co., Ltd. Investment Announcement", with the main purpose of effectively integrating existing assets and sustainable development of enterprises through investment promotion.
Looking at the development of the Nazhijie brand, it also had glorious moments at its beginning. In 2012, the Nazhijieda 7, which is now regarded as industrial garbage, emerged. However, at that time, with its cross-level luxury configuration, it gained a lot of sales at one time. In the first year alone, 31,000 NT$7 entered the hands of consumers. At its peak, the sales of the entire brand exceeded 60,000. At its peak, it even invited Jay Chou as the spokesperson, which further established its brand awareness.
However, as the problems of high fuel consumption and multiple failures have become more and more obvious over time, even if Nazhijie subsequently launched more abundant models such as U6 and M7, it failed to save its sales. By 2020, Nazhijie's annual sales were only 14 units left.
NZJI's popularity is natural. When the independent SUV has not yet made its efforts, a car with ultra-high configuration is indeed attractive; the failure of NaZJI's is also natural. The efforts of many independent brands and the product strength of NaZJI's own has made it quickly lose its competitiveness in the market, and it is currently carrying a debt of up to 7 billion yuan - which is even higher than its annual revenue at its peak. So why does a "failed" car company think that it can successfully invest in the investment?
In addition to the most direct sales results, brands, patents, factories and qualifications are also important factors in measuring the value of a car company. Moreover, according to the expectations of the investment letter, investors who "invest projects with new energy vehicle research and development and sales as their main business directions" are qualified to buy Dongfeng Yulon, which shows its expectations for entering the new energy market.
In fact, it is something that many new car manufacturers are doing by purchasing factories and qualifications. For example, Ideal acquired Lifan for 650 million yuan, and Xiaopeng acquired Fudi for a price higher than 1.251 billion yuan. Ideal and Xiaopeng's success today also proves the correctness of its original choice of the path.
But can Dongfeng Yulon wait for the same opportunity as Lifan or Fodi? It also faces the following two difficulties: first, the price problem. Investors must first face Dongfeng Yulon's debt of up to 7 billion yuan. Such a price can be considered a sky-high price in similar mergers and acquisitions; in addition, new energy vehicle manufacturing itself has entered a period of internalization, the market structure is basically stable, and new enterprises to develop have already found production qualifications and channels. At this time, how many people want to join the market are a difficult question.
starts well and ends hastily. This is a common path for many declining car companies, that is, they lack core technology and basic product quality control. Whether in front of Honda, Volkswagen, or today's , BYD , or Great Wall, it will not be a product with a chance of winning. Is Dongfeng Yulon now worth 7 billion of its debts? Investors will measure this problem.
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