LUOJIA 洛阳北方企业集团有限公司

[MJH]

LUOJIA
The fourth largest Chinese motorcycle manufacturer in production, holds 5.31% of total production lost 17.46% of production for the first half of 2013. Primarily makes what are commonly called “cabbage bikes” in China. These are copies of old Suzuki GN125s, and Honda CG125s etc. At one time LUOJIA had a partnership with Highland Motorcycle, that venture seems to have dissolved and the separated US Highland currently is only offering engines for sale as an OEM.


LUOJIA is also held by the China South Group.

[MJH]

US Highland is still ticking, they claim to be restructuring as a OEM for engines...
Their CEO states they are actively looking for existing brands to buy...seeking power-sports manufacturers, in different segments?

"we have been actively seeking to acquire established consumer brands within the powersport sector that could immediately impact our bottom line. Several potential targets have already been identified for possible acquisition. We would like to replicate this business model to ultimately acquire 2-4 separate powersports brands over the next 12 months representing different categories with the powersports industry."

Its never really been covered, least I never came across any disclosure about the Highland venture with LUOJIA.
LUOLIA still has the 950 model listed within its products?

Its amazing how a company with no obvious source of operating revenue can manage to keep operating.

This is a very small company, it has engines that are high tech and certainly not inexpensive.

I assumed the original plan was to make everything but the engines in China, then to assemble them here? Even in that business model, there is a real need to get the products to retail. So its not just an existing brand they are seeking, but a retail distribution network? Then they also get technical, inventory management...everything that is needed to actually sell products.

Its a bit like fantasy baseball? You get a clue in that their business model is based on others building around the engines, in pursuit of their dream to build bikes. Key word is based on a dream, a dream of others they are imagining.

WOW!

[MJH]

Are they betting on the Euro getting much stronger then the dollar? Because all I can see is EU companies in the industry that would ever be for sale. They certainly are not Asian companies or American, there are none for the later, if there are they are very small and with no value in sales.
It is interesting because the statements all are as if the audience has no information at all about the market. Accountancy to keep the boat floating?
It fascinates me, just like the data that claims scooter sales fell 25% last year in the USA, when in reality the Chinese took that 25% and likely added some. The variance is not documented, because they have no viable way of counting the unit sales. They only ask how many to those that will tell them, they cannot see the sales of Chinese scooters that way. I can assure you the top selling scooter manufacturer in the USA is Znen.
So who is it that Highland is eyeballing to purchase?
The only way an American made engine would have any value in the industry would be in if it was more cost effective to make it in the USA then in the EU. How else could it save a company that is up for sale, the only time they go up for sale is when they are sinking? Who is going to finance the acquisition, these people are amazing at keeping it going.

[MJH]

Maybe there are small startups in the industry in the US? How could they add an immediate value? Never mind, they cannot, they would be problems in themselves.
Maybe they could float the company on something that actually brought some real cool and affordable products to the market and not just keep them all employed.

I always thought that everything they made looked unfinished.