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According to the Interface News, Geely Group's strategic investment department is in contact with relevant agencies to discuss the acquisition of Shenzhou rental cars. According to the Interface News, Geely Group discussed the acquisition of Shenzhou car Rental as early as a few days before Muddy Waters released Luckin Coffee's report, and Geely Group also acquired Shenzhou car Rental for the development of its travel brand, Cao Cao Travel. Cao Cao's main operator, Hangzhou Youhang Network Technology Co., Ltd., is gradually increasing its registered capital in various cities across the country to prepare for the acceptance of Shenzhou car rental assets.

In response to the above reports, Yang Xueliang, vice president of Geely Group, said that "Geely has no plans to acquire China, the two sides have never been in contact, and we have no interest in acquiring such a company." Cao Cao said that "no relevant information has been received", while China car rental said "no comment".

Lu Zhengyao, chairman of China car Rental, is also the chairman of Luckin Coffee. On April 2, Luckin Coffee revealed that he had made a financial fraud of 2.2 billion yuan. Affected by Luckin Coffee's financial fraud, the share price of China Rental car plummeted and announced the suspension of trading on the same day. On April 7, China car Rental issued a clarification notice that the company did not hold any American depositary shares or other securities of Luckin Coffee and was not involved in any business transactions of Luckin Coffee. Shenzhou car Rental said that although Lu Zhengyao was a shareholder and chairman of Luckin Coffee, he resigned as CEO and changed to a non-executive director in April 2016 and has not participated in the day-to-day management of the Group since.

Cao Cao Travel is Geely Group travel service platform, a collection of new energy special car travel, new energy vehicle timeshare rental and other services, Geely Group is an important step in the layout of travel business. In addition to the traditional ride-hailing service, Geely is also experimenting with car-rental services. In March this year, Cao Cao reached a strategic cooperation with Xiaolinggou, a direct rental travel platform.

China car Rental is currently the largest car rental company in China, with more than 1000 service points and more than 10 million individual users in more than 300 cities by 2017, according to official information. However, the situation of car rental in China has not been very good recently. according to the annual report released on March 17, 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, and the net profit was 31 million yuan, down 89.3 percent from the same period last year. Since Luckin Coffee's financial fraud broke out, the share price of car rental in China has fallen by more than 50%, making it difficult for China to rent a car.

In the context of the sharp fall in the share price of car rental in China, it has naturally become a good time for all kinds of investment and acquisition. In addition to the rumors of Geely Group's acquisition of China Rental car, there were also media reports earlier today that Ctrip would acquire China Rental car and integrate Yihi car rental business to expand Ctrip's car rental platform. However, Ctrip responded to the "false news".

But in any case, car rental in China is indeed a high-quality asset in the travel business. Some people in the industry believe that Luckin Coffee's financial fraud has led to a sharp fall in the share price of car rental in China, and Geely Group also hopes to have more room for development in its travel business, which is indeed a good opportunity for car rental in China.

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