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Qingling Motors (1122.HK)

In Short: Low valued, cash rich Truck manufacturer that is making changes towards environmentally responsible offerings.

Company produces and sells Isuzu light duty trucks, pickup trucks, multi-purpose sport vehicles, heavy-duty trucks, other vehicles, and automobile parts and accessories. The company has cooperated with Isuzu for over 20 years in various production JV's and under various technology licenses. Isuzu accesses the Chinese (light) truck market via Qingling, who produces around 100,000 vehicles annually.

Developments and focus on ESG:
Qingling brought several new vehicles on display at 2019's Shanghai Auto Show initiating its change towards more environmentally friendly technologies in its trucks, including GIGA 2020, electric truck, fuel cell truck, TAGA pickup, 700P recreational vehicle etc. These newly developed vehicles are set to further diversify Qingling's product line and strengthen its competitiveness in the market.

The newly upgraded GIGA 2020 truck fully epitomises the advanced technologies from both Qingling and Isuzu. Equipped with an Isuzu engine, ZF AMT automatic transmission gearbox, air suspension, hydraulic retarder, the truck is able to deliver a maximum 520 horsepower.

Catalyst: Fuel Cell JV with Bosch
Qingling and Germany-based Bosch officially signed a cooperation agreement. According to the agreement, the two parties will establish a joint venture specialising in developing, manufacturing, assembling and marketing fuel cells. The new company boasts a registered capital of 800 million RMB (Bosch China holding 60% shares and Qingling holding 40% shares).

Already on display at the 2019 Shanghai Auto Show were three Qingling new energy vehicles, including a fuel cell truck, EVK100 electric sanitation truck, EV100 electric distribution light truck. The Company has set up a JV with Bosch to develop and implement Fuel Cell technology in 2021 in 70 heavy good trucks enhancing its environmentally friendly offerings.

Background:
Qingling Motors Co. Ltd engages in the manufacturing and sales of automobiles. It operates through the following segments: Light-duty Trucks, Multi-Purpose Vehicles, Pick-Up Trucks, Medium and Heavy-Duty Trucks, Automobile parts and Accessories. The Company was founded in 1994 and is headquartered in Chongqing, China.