Shenda Shares (600626):Auria Expects To Invest 387 Million Yuan In 2020.

Shen Da shares (600626.SH) announced that in 2020, Auria Solutions Ltd., a subsidiary of the company, is expected to make capital investment in auxiliary daily operations such as consumption reduction, efficiency improvement, equipment maintenance, information system and plant relocation. The investment involves factories in North America, Europe and other countries and regions. The total amount of investment is estimated to be US $19 million 797 thousand and 300, of which North America's investment in 2020 is estimated to be US $8 million 181 thousand and 900, and the investment in Europe and other countries and regions in 2020 is estimated to be US $11 million 615 thousand and 400.

In 2020, Auria will aim at new orders of some new vehicle manufacturers including Honda, Daimler, Volkswagen, BMW, Skoda, SUZUKI and so on. Since 2020 to 2021, it has invested in production line equipment renewal, auxiliary equipment, equipment commissioning and maintenance. The total amount of investment is estimated to be US $35 million 418 thousand and 400, of which the investment in North America is expected to be US $17 million 763 thousand (2020 investment is US $4 million 595 thousand, 2021 investment is US $13 million 168 thousand), and investment in Europe and other countries and regions is expected to be US $17 million 655 thousand and 400 (2020 US $13 million 614 thousand and 400, and investment in US $4 million 41 thousand).

As of December 31, 2018, the total assets of Shenda's audits were RMB 11 billion 136 million yuan, and the estimated investment amount of the Auria company was about 387 million yuan, accounting for 3.48% of the total audited assets of the company in 2018. The above source of funds is Auria company's self financing. This investment is a necessity to stabilize Auria's market share and achieve its steady and sound development. It is in line with the actual production and operation needs of the company, and is conducive to enhancing the overall business level of the company.