FAW Car Will Increase 703 Million for FAW Financial Company

FAW Car (000800) announced on the evening of November 27 that the company intends to increase the share capital of 703 million yuan stake in the company FAW Finance Limited. The company currently holds 348 million shares of Themine Coupon financial companies with a stake of 21.75%. According to the capital increase plan, the company intends to increase its cash holdings by RMB703 million to 132 million shares. After the capital increase, the Company held a total of 480 million financial companies and its shareholding increased to 21.81%. Project funds raised by the company. The transaction constitutes a connected transaction.
FAW Car said that financial companies have good economic returns and brought stable investment returns to the company every year. Financial data show that FAW Car 2016 2016 January-September to achieve revenue of 3.42 billion yuan, 3.593 billion yuan, net profit was 930 million yuan, 1.3 billion.
The financial company intends to increase capital, capital increase is completed, the registered capital of finance companies increased from 1.6 billion yuan to 2.2 billion yuan. The capital increase of the financial company for the Dacoz original shareholders and new shareholders, including FAW Car, FAW Capital Holdings Co., Ltd. and Changchun FAW Fu Wei Auto Parts Co., Ltd., the shareholders subscribe by cash, the subscription price of 5.33 yuan. The actual controlling shareholders of FAW Car, Capital Control and Changchun FAW Fu Wei Automobile Parts Co., Ltd. are both China FAW Group Corporation.
The announcement said that as of October 31, 2017, the Company and Finance Company incurred a total of RMB478 million in various related party transactions, including the balance of deposits, the balance of loans, the loans paid and the discounted interest amount of bills.
FAW Car said that the financial company to increase their capital to meet the needs of its strategic development, while supporting the scale of assets and business development in the future, while further enhancing the strength of capital strength and ability to resist risks, including corporate members, including units to provide more loans , Financial support and more extensive and efficient financial services.
Analysts said that from the investment point of view, the company expected to reform far beyond the fundamentals of their own catalyst. After FAW Group announced the sale of its stake in FAW Xiali, the problem of Clothing Coupons competition in the industry that obstructed FAW's overall listing for many years was substantially solved. As a result, FAW Car became the sole subject of the overall listing of FAW Group. FAW shares owned FAW-Volkswagen, FAW Toyota, FAW Liberation, FAW Finance and many other unlisted assets. In 2016, FAW's net profit attributable to parent company reached 27.4 billion and its profitability is second only to that of SAIC. Xu Liuping (click to view the latest figures and information) After the chairman of the board took the appearance of a new look, internal management smooth back to healthy development, the probability of completion of the overall listing by June 2019 commitment.