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On August 31, Subaru China issued a statement: "recently, there have been continuous reports that Subaru China is considering withdrawing from the Chinese market." In this regard, we solemnly declare that Subaru China attaches great importance to the Chinese market. Since 2021, we have introduced Aohu, BRZ, Forest Man and other replacement and modified models, and will also introduce pure electric SUV SOLTERRA. In the future, we will also strive to introduce more attractive models to meet the needs of Chinese consumers.

According to the data, Subaru is an automobile brand of Fuji heavy Industry Co., Ltd., which is one of the top ten automobile companies in Japan, mainly producing cars, as well as aircraft, railway vehicles, engines and so on. On March 10, 2006, Subaru China was officially established as a wholly foreign-owned enterprise and a wholly owned subsidiary of Fuji heavy Industry Co., Ltd.

The giant group, founded in March 2003, was once the king of "4S store" and "the largest automobile distribution group in China". In 2004, the huge group won the exclusive agency of Subaru Motor in eight provinces and cities in China, and became one of Subaru's three agents in China. On January 18, 2013, Fuji heavy Industry Co., Ltd. announced the signing of a joint venture agreement with a large group. According to the agreement between the two sides, Fuji heavy Industries Co., Ltd. and the huge Group jointly contributed to Subaru China. After the completion of the investment, Fuji heavy Industries Co., Ltd. holds a 60% stake in Subaru China, and the huge Group holds a 40% stake in Subaru China. Subaru China is a Sino-foreign joint venture, and its main business scope includes importing Subaru brand vehicles, wholesale and retail Subaru cars to dealers and so on. At this point, Subaru's development in China is deeply bound up.

From the launch of Subaru's new car to the after-sales maintenance of Subaru, there is the intervention of a large group, and Subaru has become an important support for the profits of the huge group. However, the huge group ignores the healthy development of Subaru in China on the premise of ensuring or even expanding its own interests as much as possible.

It is understood that Subaru's peak in the Chinese market appeared in 2013, with cumulative sales of 57000 vehicles for the whole year. Subaru's sales in China began to decline in 2013, from 54000 in 2014, 47000 in 2015, 45000 in 2016, 31000 in 2017, and 25000 in 2018 and 2019. Sales have been declining for many years in a row, so we have to associate the development path of the huge group.

In recent years, the huge group is mired in the management crisis, and the halo of the former "4S king" has long since disappeared. Since 2018, large groups have been sued in a number of courts, and the relevant applicants have successfully applied to the court for property preservation measures to freeze bank deposits or other equivalent assets of large groups. In May 2019, the giant group borrowed 17 million yuan from Beijing Jidongfeng, which was finally sued by Beijing Jidongfeng to the court because it was unable to repay it within the time limit. In September 2019, the Tangshan Intermediate people's Court ruled to accept the company's application for restructuring on the grounds that the company could not repay its due debts and that it might lose its ability to repay. According to the relevant provisions of the Enterprise bankruptcy Law, if the reorganization of the company fails, the company will be declared bankrupt by the court. In December 2019, the bankruptcy reorganization of the huge group was completed, and the Shenzhen Commercial Group, Yuanwei assets and national transport capacity were formally identified as the restructuring investors of the huge group.

However, it is difficult for the restructured giant group to return to its peak, withholding non-net profits of-4.052 billion yuan, 187 million yuan and-389 million yuan respectively from 2019 to 2021. On August 25th, the giant group released its interim report. According to the report, operating income in the first half of 2022 was 12.63 billion yuan, down 13.9 percent from the same period last year, while net profit was 240 million yuan, down 95.9 percent from the same period last year. From the huge aspect, it is pointed out that the reason for the performance pre-reduction, on the one hand, is that the operating income has declined compared with the same period last year, and the gross profit margin on sales has declined, resulting in a decline in non-net profit from the same period last year; on the other hand, the amount of non-recurrent profit and loss arising from the disposal of shares in subsidiaries has decreased compared with the same period last year.

On August 26th, the huge Group disclosed the notice on the New Litigation and the results of the Litigation, which mentioned that the applicant Subaru Co., Ltd. applied for arbitration to the Hong Kong International Arbitration Center. The large group of the respondent is required to take (net asset value x the proportion of equity of the respondent (40%) × discount (80%)) of about 265 million yuan (or such other amount as the arbitration tribunal deems appropriate) as the equity transfer price. Transfer all shares of the respondent in Subaru China to the applicant. According to the court's final ruling, Subaru has the right to acquire a 40 per cent stake in Subaru China held by a large group for 265 million yuan and requires the respondent to complete it within 30 days after the ruling is made.

The huge group has said many times in the financial report that Subaru China is the only distributor of Subaru brand cars in China, which plays an important role in the company's sales revenue and profits. However, as Subaru buys back Subaru's stake in Subaru China, the operating conditions of large groups may come under further pressure, and Subaru's buyback is widely regarded as a significant boon to Subaru's Chinese shareholding. It means that Subaru has all the dominance in its own hands.

According to the official website, Subaru currently sells four models, including Forest Man, Aohu, XV and BRZ, of which the new generation of Aohu officially went on sale in March 2021, with a price range of 31.28-330800 yuan. In November 2021, the mid-term modified Forest Man was officially listed, with a price of 22.38-265800 yuan. In December 2021, the new generation of BRZ officially appeared on the market, with a manual price of 308800 yuan and an automatic price of 330800 yuan. Unfortunately, at present, the emission of new cars is the national 6A standard, which enables it to complete the vehicle registration procedures in areas where the national 6B standard is not available (such as Beijing and Shanghai).

The new Subaru BRZ with parallel imports has appeared on the catalogue, which means that the new Subaru BRZ with parallel imports can be officially registered in Beijing, according to the Beijing Municipal Bureau of Environment and Ecology.

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