[ET Net News Agency, 24 September 2018] China Evergrande Group (03333) said it entered
into a strategic cooperation agreement with Xinjiang Guanghui Industry Investment
(Xinjiang Guanghui), pursuant to which the parties agreed to fully cooperate strategically
in the fields of vehicle sales, energy, real estate and logistics, to give full play to
their strengths in resource integration, and promote relevant industry development.
Xinjiang Guanghui's controlling shareholder agreed to transfer an aggregate of 23.865%
interest in Xinjiang Guanghui to Evergrande Group for a consideration of RMB6.68 billion.
Evergrande Group will also contribute additional capital of RMB7.81 billion to Xinjiang
Guanghui.
Upon completion of the capital increase, Evergrande Group will hold 40.964% interest in
Xinjiang Guanghui and will become the second largest shareholder of Xinjiang Guanghui. The
financial information of Xinjiang Guanghui will not be consolidated with that of the group
and Xinjiang Guanghui will not be regarded as a subsidiary of the group.
Xinjiang Guanghui holds 32.5% interests in China Grand Automotive Services (stock code:
600297.SH), which in turn holds 67.71% interests in the Grand Baoxin Auto (01293). (SC)