News Agency NewsOn February 20, Geely Automobile Holdings announced that on February 20, 2024 (after trading hours), Zhejiang Jirun, a subsidiary of the Company, entered into a share transfer agreement with Geely Qizheng, pursuant to which Zhejiang Jirun** and Geely Qizheng agreed to purchase 45% of the equity of Ruilan Automobile at a cash consideration of RMB504,000,000. **Upon completion of the event, the Group will no longer own any equity interest in Ruilan Automobile, and it is expected that the Group will record a gain of approximately RMB1 from the event1.7 billion yuan.
This means that after the completion of the transaction of 45% of Geely's ** Ruilan Automobile's equity, it will no longer hold shares in Ruilan Automobile.
According to the announcement, Zhejiang Jirun, a subsidiary of Geely, entered into an equity transfer agreement with Geely Qizheng, Zhejiang Jirun agreed to ** and Geely Qizheng agreed to purchase 45% of the equity of Ruilan Automobile, with a cash consideration of 50.4 billion yuan.
**After the completion of the matter, Geely Group will no longer hold any interest in Ruilan AutomobileIt is expected that the group will achieve a revenue of approximately RMB11.7 billion yuan. After the completion of this ** event, Ruilan Automobile will be 55% and 45% owned by Lifan Technology and Geely Qizheng respectively.
Regarding the transaction, Geely Automobile said that in view of the competitive advantages of China's auto market, the group believes that focusing most of its resources on supporting the growth of new energy vehicles and the battery swap business can enhance the group's competitiveness.
However, it should be pointed out that Geely Qizheng is ultimately beneficially wholly owned by Li Shufu and his associates. Industry insiders believe that this transaction "can be regarded as the actual controller Li Shufu's left hand to his right hand". Therefore, the announcement also pointed out that Geely Qizheng is a connected person of the Company, and according to the Listing Rules, the transaction to be carried out under the Share Transfer Agreement constitutes a connected transaction of the Company.
Founded on January 24, 2022, Ruilan Automobile is jointly funded by Geely Automobile and Lifan Technology, with a registered capital of RMB 600 million, Geely Holding and Lifan Technology each contributing 300 million yuan, and both parties holding 50% of the shares. Ruilan Automobile is located in Liangjiang New Area, Chongqing, and is mainly engaged in the research and development, sales and operation of automobiles (including but not limited to electric vehicles).
It includes two series, Maple Leaf and Ruilan, which carry the important task of Geely's layout in the battery swap track.
Geely Automobile Group's January 2024 sales report.
Geely Automobile Group's December 2023 sales report.
It is worth mentioning that in Geely Automobile Group's January 2024 car sales report, the sales data of Ruilan Automobile has disappeared; In the December 2023 sales report, Ruilan Auto is still listed, but its sales volume is only 3,600 units, a year-on-year decrease of 66%.
For this Ruilan Automobile-related transaction, industry insiders believe that on the one hand, Geely Automobile will divest it, which is conducive to boosting the overall sales and financial performance, and on the other hand, it will also enable Ruilan Automobile to have greater autonomy and development space after the transaction.
Photo: Netcom Wei Wei).