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On the evening of January 16, Foton Motor issued a progress announcement on the transfer of 67 per cent stake in Beijing Baowo Automobile Co., Ltd., saying that by January 10, 2020, the company had received the remaining price of 1.3 billion yuan. As of January 15, 2020, the remaining price of 1.481 billion yuan has not been received. The remaining price due and unpaid will have a certain impact on the company's operating cash flow, but will not affect the normal production and operation of the company. The company will urge Changsheng Xingye to fulfill its payment promise in accordance with the follow-up agreement.

Foton Motor received a question from the Shanghai Stock Exchange because the funds for the transfer of 67% of Bowo's stake were not recovered. The Shanghai Stock Exchange requires Foton Motor to fully verify the specific conditions of Changsheng's operation, finance, credit and other aspects, and actively take effective measures to ensure the recovery of relevant funds to ensure the interests of listed companies. Carefully assess the risk that the relevant funds may not be recovered in full and on time, and fulfill the corresponding information disclosure obligations.

In 2014, Foton Motor bought Bowo Motor for 5 million euros and established Beijing Baowo Automobile Co., Ltd. in January 2016. Beijing Bowo has been losing money since 2016. according to statistics, the annual sales of Beijing Bowo cars from 2016 to 2018 were 30, 000, 44000 and 32900 respectively, with a cumulative sales volume of 106900 vehicles in three years. From 2016 to 2018, they lost 484 million yuan, 985 million yuan and 2.545 billion yuan respectively, with a cumulative loss of 4.014 billion yuan over the past three years.

In the face of the loss-making Bowo, Fukuda was also overwhelmed and finally listed to transfer 67% of Bowo's shares on October 18, 2018, while Changsheng Xingye became the receiver of Bowo.

On January 15, 2019, Foton confirmed that the transfer price for the 67% stake in Beijing Baowo Automobile Co., Ltd. to Changsheng Xingye was 3.97 billion yuan, thus Changshengxing became the transferor of 67% of Bowo Motor. It is worth noting that the real transferee of 67% of Beijing Bao Wo Motor is actually Shenzhou Youche. On December 28, 2018, Shenzhou Youche announced that in order to facilitate the deal, Shenzhou Youche guaranteed the shareholder loans provided by Foton Motor to Bowo Motor and helped Changsheng Xingye guarantee the loan of 4.27 billion yuan, the amount of which did not exceed 2.4 billion yuan. In March 2019, Shenzhou Youche announced that its subsidiary had acquired a 67% stake in Bowo Motor held by Changsheng Xingye.

Foton Motors said in an announcement that the price was paid in two installments. On January 18, 2019, the company received a down payment of 1.19 billion yuan and the remaining price of 2.78 billion yuan, which should be paid within one year of the actual effective date of the contract. Therefore, Changsheng Xingye, the counterparty to the transaction, should pay the remaining price of the above-mentioned equity transfer before January 15, 2020. However, as of January 10, 2020, the company had received the remaining price of RMB 1.3 billion. As of January 15, 2020, the remaining price of 1.48 billion yuan has not been received.

As for why Changsheng Xingye is still in arrears with Foton Motor's equity transfer price, it is unknown. According to the semi-annual report of China excellent car, Xiamen has paid a total of 2.05 billion yuan in advance for the acquisition of shares before June 30, 2019.

It is worth noting that Foton Motor quickly made a profit after transferring its stake in Beijing Baowo. According to the financial report, Foton Motor realized operating income of 35.431 billion yuan in the first three quarters of 2019, an increase of 13.93% over the same period last year. The net profit belonging to shareholders of listed companies was 258 million yuan, compared with a loss of 1.694 billion yuan in the same period last year.

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