Invest 527 Million, Xiamen XinDa Directly / Indirectly Purchase Xiamen China World Trade Center Automobile Business.

- Oct 02, 2018-

Xiamen Xinda Co., Ltd. (hereinafter referred to as "company", "Xiamen Xinda") announced this morning that the company intends to purchase 98.671% of the shares of Xiamen International Trade Automobile Co., Ltd. (hereinafter referred to as "Xiamen International Trade") held by Xiamen International Trade Group Co., Ltd. (hereinafter referred to as "International Trade Automobile"). Quan and Fujian Huaxia Motor City Development Co., Ltd. (hereinafter referred to as "Huaxia Motor City") 100% stake.——LED lighting

Xiamen Xinda Automobile Investment Group Co., Ltd., a wholly-owned subsidiary of the company, intends to acquire 1.329% of the shares held by Shanghai Qirun Industrial Co., Ltd. (hereinafter referred to as "Shanghai Qirun") which is a subsidiary of Xiamen International Trade, by means of cash payment.——LED lighting

The company's wholly-owned subsidiary, Hong Kong Sindano Limited, intends to acquire a 25% stake in ITC Yingtai Finance Lease (Xiamen) Limited (hereinafter referred to as "Baoda Hong Kong") by cash payment.——LED lighting

According to the announcement, the total purchase price is RMB 526 million 906 thousand and 300 yuan. Among them, the transfer price of 98.671% equity of ITC is 2434.892 million yuan, the 100% equity transfer price of Huaxia Auto City is 2310.142 million yuan, the transfer price of 1.329% equity of Shanghai Kairun is 327.96 million yuan, and the transfer price of Baoda is 49.9973 million yuan.——LED lighting

Data show that Xiamen International Trade is a comprehensive enterprise, the existing supply chain management, real estate management and financial services three core businesses, the main business development in the last three years. Shanghai Qirun is a platform company of Xiamen International Trade in Shanghai and Yangtze River Delta, mainly engaged in trade and investment business, and has developed well in the past three years. Baoda Hong Kong is the platform company of Xiamen International Trade in Hong Kong, mainly engaged in trade and investment business, business development in the past three years.——LED lighting

In addition, Guomao Automobile is a comprehensive automobile investment management enterprise with automobile sales service as its main business. Its subsidiary investment enterprises mainly engage in 4S stores of middle and high-end brand automobiles, operating a number of well-known automobile brands including Audi, Infiniti, Cadillac, Toyota, Honda, Volkswagen and Hyundai. Business scope covers brand automobile sales, automotive maintenance, spare parts sales, automotive finance, automotive decoration and beauty, automotive club and other complete automotive service industry chain. In the first half of 2018, revenue was 1 billion 839 million yuan and net profit was 40 million 760 thousand yuan.——LED lighting

Huaxia Auto City is a large professional automobile sales and service company which integrates vehicle sales, spare parts supply, vehicle maintenance and information feedback. It is a special dealer and regional agent of Southeast Automobile, Volkswagen, Citroen, Chrysler, Honda, Huachen and other automobile manufacturers at home and abroad. The company takes the vehicle sales as the lead, can provide one-stop service for the customer, such as vehicle maintenance, spare parts supply, car decoration, vehicle insurance, vehicle inspection, car purchase tax, registration and loan purchase. In the first half of 2018, revenue was 461 million yuan and net profit was 11 million 750 thousand yuan.——LED lighting

The company is mainly engaged in automobile financing leasing and other business, striving to provide customers with financial leasing consultation and personalized comprehensive financial services solutions. In the first half of 2018, revenue was 29 million 630 thousand yuan and net profit was 9 million 110 thousand yuan.——LED lighting

After the completion of the acquisition, China International Trading Automobile, Huaxia Auto City, and China International Trading Yingtai will become subsidiaries of Xiamen Xinda directly or indirectly controlled. After the completion of the transaction, ITC Automobile, Huaxia Auto City, ITC Yingtai will be included in the Xiamen Xinda merger report.——LED lighting

Xiamen Xinda said that ITC Automobile, Huaxia Automobile City and its subsidiaries have been engaged in automobile business for many years. They have relatively complete automobile distribution industry chain business, rich industry management experience and good brand awareness. They have also been selected into the top 100 automobile distribution industry dealer groups in China for many years. If the acquisition can be successfully completed, it will be conducive to the company's automotive business integration of superior resources, rapid expansion of large-scale, thereby greatly enhancing their core competitiveness, the realization of leapfrog development of automotive business, in line with the company's strategic development requirements.——LED lighting

In addition, this transaction can also effectively eliminate the competition between the company and Xiamen International Trade in the automobile distribution business, which is conducive to further improving the standard of corporate governance.——LED lighting

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