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Foton Motor recently released an annual profit forecast for 2019, which shows that the net profit attributed to shareholders of listed companies is expected to be about 360 million yuan in 2019, compared with-3.57458 billion yuan in the same period last year.

Foton Motors said in the announcement that the main reason for the annual profit in 2019 is that due to the transfer of 67% of Beijing Bowo Motor, the transfer will no longer be included in the scope of the merger, resulting in a substantial loss reduction compared with the same period last year.

According to the data, Foton bought Bowo at a price of 5 million euros in 2014, and the acquired Bowo used the slogan of "German Brothers", which means that Bowo is second only to Mercedes-Benz BMW Audi. This slogan has been complained by many consumers, and Bowo has indeed made a good improvement during the period from 2014 to 2016.

Until 2016, when Futian established Beijing Baowo Automobile Co., Ltd., Beijing Baowo began to lose money. According to data, Beijing Bowo sold 30, 000, 44000 and 32900 cars respectively from 2016 to 2018, with a cumulative sales volume of 106900 in three years. Beijing Bowo lost 484 million yuan, 985 million yuan and 2.545 billion yuan respectively from 2016 to 2018, with a cumulative loss of 4.014 billion yuan over three years.

In the face of Beijing Baowo, which has been losing money for years, Foton Motor has been unable to support its next development. Finally, Foton Motor listed on October 18, 2018 to transfer 67% of Bowo Motor shares, and Changsheng Xingye became the successor of Bowo Motor.

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. On June 30, 2019, China excellent car (Xiamen) said in its semi-annual report that it had paid a total of 2.05 billion yuan in advance for the acquisition of shares before June 30.

It is worth mentioning that as of January 10, 2020, Foton Motor only received the remaining price of RMB 1.3 billion. As of January 15, 2020, Foton Motor still has 1.481 billion yuan remaining price has not been received, as for why Changsheng Societe Generale is still in arrears with Futian Motor equity transaction price is not known.

Sales figures show that Foton sold a total of 540005 vehicles in 2019, up 5.45 per cent from 512096 in the same period last year. Of these, the cumulative sales of new energy vehicles reached 5988, up 60.97% from 3720 last year.

According to the data, Foton Motor is a cross-regional, cross-industry and cross-ownership state-controlled listed company. At present, it has business brands such as Auman, Ouhui, Omake, Orling, time, Savannah, Land Pioneer, SAP, Tuyano, Landscape, Montpac, Rivo and other business brands. Production models include light trucks, medium-sized trucks, heavy trucks, light buses, large and medium-sized buses, as well as core components engines.

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