(Yicai) July 29 -- Changan Automobile Group was established as a standalone central state-owned enterprise in the southwestern municipality of Chongqing today, making it the country’s third centrally owned automaker after FAW Group and Dongfeng Motor, the Chinese vehicle manufacturer told Yicai.

The group was formed by spinning off from the former automobile business of the China South Industries Group. It is the first central SOE to be based in Chongqing and the 100th central SOE nationwide.

Changan Auto completed its commercial registration on July 27, with a registered capital of CNY20 billion (USD2.8 billion), according to corporate data platform Qichacha. Its legal representative is Zhu Huarong, current chairman of the company. The firm is registered in Chongqing’s Jiangbei district. The company has already launched official accounts on Weibo, WeChat and other accounts.

The firm owns 117 subsidiaries and offers a wide range of businesses that includes vehicle and auto parts manufacturing, car sales, financial and logistics services, motorcycles and other fields. Its main brands include Avatr, Deepal Automobile, Changan Qiyuan, Changan Automobile and Changan Kaicheng.

Changan Auto plans to hold a media briefing tomorrow to reveal its mid-year performance and the development plans for each of its marques.

This restructuring was given the green light by the State Council in June. China South’s auto business will be calved off into an independent central enterprise, Changan Auto said on June 5, citing the notice that China South received from the State-owned Assets Supervision and Administration Commission, which is under the State Council.

The new group will become Changan Auto’s controlling shareholder, although ultimate ownership will still rest with the State-owned Assets Supervision and Administration Commission.

Back in February, both Wuhan-based Dongfeng and Changan Auto said that their parent firms were in talks with other central SOEs about a potential restructuring. This fueled market speculation that the two companies might merge.

Changan Auto’s net profit plunged 35.3 percent last year from the year before to CNY7.3 billion (USD1 billion) while revenue climbed 5.5 percent to CNY159.7 billion (USD22.3 billion). The firm shipped 1.3 million autos in the first half, of which 451,700 units were new energy vehicles.

Central SOEs refer to SOEs managed by the State-owned Assets Supervision and Administration Commission of the State Council. They play an important role in the country’s economy, and operate in key sectors such as energy, transportation, telecoms, defense and finance. There are now 100 such enterprises nationwide.

Editor: Kim Taylor