Xinhua Jin (600735): The Subsidiary Intends To Establish A Second-Hand Car Joint Venture With Carchs In Qingdao.

600735.SH announces that in order to speed up the development of the second-hand car export business, the company's wholly owned subsidiary, Qingdao Xinhua Automobile Trading Co., Ltd. ("auto trading company") intends to establish a second-hand car joint venture company, Qingdao new car limited company, in Qingdao with the name of Carchs, which is tentatively named by the registration of industrial and commercial enterprises and the joint venture company. The registered capital of the joint venture is 100 million yen, of which the auto trading company subscribes 66 million 660 thousand yen (equivalent to RMB 4 million 250 thousand yuan) in currency and holds 66.66% of the joint venture company.

The purpose of establishing a joint venture company is to be responsible for overseas sales, domestic transactions, inspection, auction, declaration, cancellation, after sale service and so on.

This investment is the specific implementation plan of the cooperation intentions letter signed by the company in March 26, 2019 with Carchs. After the establishment of the joint venture, we will make better use of Carchs's rich experience in the inspection, inspection, evaluation, lease and sale of second-hand cars, and establish a set of business processes suitable for the export of used cars in China, and speed up the promotion of the second-hand car export business.

This investment will not have a significant impact on the company's business performance and production activities in the short run. In the long run, this investment is conducive to the rapid development of the second-hand car export business. The second-hand car export business will become a new profit growth point of the company's international trade business, conforming to the company's development strategy and the interests of all shareholders.