Xinhua Jin (600735): Second Hand Vehicle Export License To Create New Profit Growth Point

Xinhua Jin (600735) announced in the evening of August 16th that the newly exported car export subsidiary Qingdao Xinhua Automobile Trade Co., Ltd., which was invested by the company, obtained the second-hand car export license issued by the competent commercial department in August 15th. This is the company's first second-hand car export license.

According to the introduction, the second-hand car export business is a second-hand car sales business carried out by Xinhua automobile trading company and a car company in Dubai. The second-hand vehicle exported is expected to be declared customs clearance at Huangdao customs in Qingdao at the end of August and exported to Dubai, UAE.

Xinhua Jin's official said that the layout of used car export business is to make full use of the existing business advantages in international trade, to find new profit growth point of the company, and to realize the diversified development of the company's products, which is not only the expansion of the scope of the original foreign trade export business, but also the strategic layout of business transformation and upgrading.

In May this year, our country opened a pilot project for second-hand car exports. The three departments of the Ministry of Commerce, the Ministry of public security and the General Administration of Customs jointly issued the notice on supporting the export of used cars in mature areas. The move is aimed at promoting the high quality development of foreign trade, ensuring steady growth of foreign trade, stimulating the vitality of domestic automobile consumption market and promoting the healthy development of the automobile industry. According to the prediction of relevant professionals, the scale of second-hand car export in China is expected to exceed 100 billion yuan in 2020. According to 10% of the turnover volume of second-hand cars in China, the second-hand car export will bring about 1 million 300 thousand second-hand cars trading volume. The export price will be 78 billion yuan at the average price of 60 thousand yuan per vehicle. At the same time, second-hand car export trade will also drive the export of auto parts and maintenance services, thereby further increasing the total volume of export trade.

Qingdao, a port city with the location advantage in the eastern coastal area, has become one of the first pilot areas in the country to launch second-hand car export business.

After becoming a pilot area for second-hand car export in Qingdao, Xinhua Jin invested 100 million yuan to set up a wholly owned subsidiary, Qingdao Xinhua Automobile Trade Co., Ltd., and actively carried out the application work of second-hand car export pilot enterprises. On the 8 day of July 2019, after being examined by the Qingdao Commerce Bureau, Xinhua automobile trading company was listed in the list of the first "second-hand car export enterprises in Qingdao" and publicized. In July 19th, the Qingdao Commerce Bureau reported to the Ministry of Commerce on the application for the registration of second-hand car export enterprises in Qingdao, and was allowed to file for record, so that the second-hand car export business could be officially launched. As early as the beginning of this year, Xinhua brocade has laid out the used car business. In March, Xinhua signed a cooperation letter of intent with Carchs, a well-known Japanese used car listed company, to carry out business cooperation in the field of second-hand car export. In April, it invested 12 million 540 thousand yuan to acquire 4.21% stake in Japanese Carchs company and became the third largest shareholder of Carchs company. Xinhua hopes to expand its domestic second-hand car export business with the help of Carchs's experience in the used car business for many years.