AutoBeta(AutoBeta.net)04/09 Report--

On April 8, BAIC Foton issued a progress announcement on the signing of contracts for the follow-up to the transfer of Baowo shares, according to the announcement. Beijing Baowo Automobile Co., Ltd. (hereinafter referred to as "Beijing Baowo") temporarily uses the estimated discount of the net asset value of the debt-paying property of 4 billion yuan to repay the designated loan. The remaining outstanding loan principal and all unpaid interest under the loan agreement shall be paid by Beijing Baowo in cash in accordance with the repayment time under the loan agreement, the two parties may negotiate separately on the repayment time of the above-mentioned outstanding loan principal and interest, but the repayment time shall be no later than January 17, 2023, and the repayment amount before January 17, 2022 shall not be less than 50% of the total outstanding loan principal and interest.

On January 16, Foton Motor issued a progress notice on the transfer of 67% stake in Beijing Baowo Automobile Co., Ltd., saying that as of 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.

On April 2, BAIC Futian and Changsheng Xingye signed the "remaining transfer Price payment Agreement". According to the agreement, Changsheng Xingye should pay 1.48 billion yuan and all interest to BAIC Foton before December 31, 2020. The designated party of Changsheng Societe Generale will guarantee the payment of the remaining transfer price. If Changsheng Xingye fails to pay the remaining transfer price as stipulated in this Agreement, it shall pay liquidated damages for overdue payment to BAIC Foton, which shall be calculated according to 2/10000 of the daily price payable during the deferred payment period.

In fact, shortly after Changsheng Xingye acquired Beijing Baowo, it transferred it to Shenzhou excellent car. In March 2019, Shenzhou Youche announced that its subsidiary had acquired a 67% stake in Bowo Motor held by Changsheng Xingye.

BAIC Fukuda said that repaying debts with things will have a certain impact on the company's operating cash flow, but will not affect the company's normal production and operation. After paying debts with things, the company pays off most of its claims in advance, which is also conducive to optimizing Beijing Baowo's debt structure, ensuring its daily operation and development, and improving its financial situation and operating results.

Futian said there was a risk of uncertainty in the timely repayment of the remaining equity in Changsheng Societe Generale, the remaining outstanding principal of Beijing Baowo shareholders and the collection of all unpaid interest and future rents.

In fact, Beijing Bowo's plight of renting cars in BAIC Futian or in China has not improved much. From January to February this year, Beijing Bowo sold a total of 2200 vehicles, down 67.7% from the same period last year. Coupled with the recent financial situation of Luckin Coffee and China car rental, the repayment still has a lot of variables. According to the financial report, the total revenue of car rental in China in 2019 was 7.69 billion yuan, an increase of 19 percent over the same period last year, while the net profit was 31 million yuan, down 89.3 percent from the same period last year. Currently, China car Rental shares are down 8.26% at HK $2.01, with a total market capitalization of 4.2 billion yuan.

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