Shen Hua Holdings 70 million additional subsidiaries to build auto investment platform

-Our reporter rectifies the month of Shen Hua Holdings (600653) June 26 announcement, the company intends to wholly-owned subsidiary Shanghai Wang Fu Automobile Sales Service Co., Ltd. (hereinafter referred to as: Wang Fu) to rename and increase capital, in addition to the establishment of a joint venture Nanjing Baoli Fung Car Sales Service Co. Mr Shong, vice president and Secretary of the Board of Directors of China, said to this reporter: "the company's capital increase subsidiary, the main purpose is to build a car sales, investment platform."　　"Shen Hua holding a comprehensive integration of the automotive industry in 2008, due to the international financial crisis on the western countries of the major developed economies of the negative impact of automobile consumption, the international car giants in the production and marketing, income, profits and other aspects have a significant decline, some enterprises even on the verge of bankruptcy." The net profit of 30.35 million yuan in 2008 was down 73% from the 114 million yuan in the previous year, according to Shen Hua Holdings report.　　As of December 31, 2008, Wang Fu auto sales audited assets amounted to 141.3191 million yuan, net assets of 37.9269 million yuan, net profit-1.4217 million yuan.　　Under the situation that the financial crisis has deep influence on the international market, the competition of each big automobile brand in the domestic automobile market is bound to intensify, and the low price small displacement vehicle gradually occupy the main market, the situation of the medium displacement car sales is weak, the circumstance that Shen Hua Holdings faces is the profit space is further squeezed However, China's automotive products mainly for domestic sales, and economic low-end products based on the characteristics, making Chinese car companies have difficulties but will not be fatal impact. At the same time, as the government launched the "Auto industry adjustment and revitalization plan", the fuel tax policy, the small displacement vehicle purchase tax reduction, the automobile countryside policy and so on, in stimulating the consumption, promotes the automobile market recovery, but also causes the automobile consumption structure to be differentiated, promotes the small displacement automobile, the light vehicle, the miniature vehicle consumption growth, Commercial vehicles also have more opportunities than passenger cars.　　Therefore, the future for the domestic car companies is a risk and opportunities coexist, according to Dong Shong, the company's increase in the subsidiary's action is to try to transform the company's car business, and hope to increase investment efforts. June 25, 2009, the first meeting of the Board of Directors of the eighth session of Shen Hua Holding was held on site, the meeting shall be attended by 11 directors, 10 directors in person, qiyumin directors entrust Wang Shiping directors to attend and vote, and the company supervisors and executives attend the meeting. The convening and convening procedures of this meeting are in accordance with the provisions of laws, regulations and articles of incorporation.　　The meeting was chaired by the company's director, Mr. Wang Shiping, and approved the above increase by unanimous vote. The company's board of directors agreed to rename the wholly-owned subsidiary, Shanghai Mingyu Automobile Investment Co., Ltd., while adding 70 million yuan to its capital. After the increase, the registered capital of Wang Fu Auto will be changed to 120 million yuan. , in addition, Shen Hua holding wholly-owned subsidiary of Shanghai Brilliance Wuzhou E-commerce Network Co., Ltd. and Longkou Nanshan Investment Co., Ltd. jointly set up a Nanjing BaoliFeng Auto Sales Service Co., Ltd.　　Nanjing Bao Li Fung registered capital of 30 million yuan, of which the brilliance of Wuzhou investment 15.3 million yuan, accounted for 51%, Longkou Nanshan investment 14.7 million yuan, accounting for 49%. Shen Hua holding "Mingyu investment" into auto industry platform 2009, Shen Hua Holdings said that to continue to adhere to the automotive industry as the leading industry development strategy, concentrated resources to rapidly expand the automotive industry chain, especially the Brilliance brand car sales scale; with new energy as the secondary, do the operation, maintenance and management of existing projects,　　Speed up new project construction, and actively reserve advantageous resources, strive to achieve scale efficiency at an early date, actively seek high quality projects and investment opportunities in other industries such as real estate industry, reduce business risks through diversification, and strengthen internal control, increase expenditure and reduce costs, improve management level, enhance profitability and competitiveness. According to the business philosophy established by Shen Hua Holding in 2009, the company will be in the new year to implement the key support strategy for the automotive industry, relying on the group's resources and advantages, combined with the experience of successful cases, actively explore the market, in the car sales, special car production and sales, automotive market development, such as rapid formation of scale, to investment, mergers,　　Cooperation of the model to establish a major regional coverage of the national Brilliance brand 4S Sales Management Center and tertiary network, and gradually build the brand of Shen Hua sales.　　Dong-Shong said, Shen Hua Holdings to increase capital sales is to Wang Fu steam sales as the backbone, to build the company's automobile industry sales and investment platform, after this integration, the company's main business of the automotive industry will be increased capital after the sale of the Wang Fuk as a platform for radiation to other aspects. Data show that Shanghai Wang Fu automobile Sales and Service Co., Ltd. for Shen Hua Holding wholly-owned subsidiary, registered capital of 50 million yuan, operating range of Brilliance brand car sales, auto parts, decoration and so on.　　The name changed to Shanghai Mingyu Automobile Investment Co., Ltd., the registered capital will increase to 120 million yuan after the increase. Shen Hua Holdings said that because of the company's business development needs, the Board agreed to change its name to Shanghai Mingyu-FU Auto Investment Co., Ltd. (referred to as "Mingyu investment"), at the same time to increase its capital of 70 million yuan, after the increase in capital, Wang Fu Auto sales (ie, Mingyu investment) will be changed to 120 million yuan.