Shanghai, June 21, ZXZC - Jinbei Automobile will further optimize listed companies’ asset quality and profitability to peel off the vehicle business. It’s known that Jinbei Automobile will transfer 100% shares of Jinbei Auto with RMB 371m. In the future, the company will focus on profitable part business to ensure minority shareholders’ interests.

Established in 1958, Jinbei Auto was mainly producing civil light trucks and military refitting vehicles, as well as auto parts. It also produced the first domestic lorry in 1959. It introduced products and manufacturing technologies from Mitsubishi Motors in the middle of 1980s to produce SY1041 lorry.

The company developed a series of trucks and facelift trucks covering light-weight models since the year 2005. In the meantime, it also produced vans, engineering dump trucks, special vehicles, SUV and pickups.

Official news comes out that Jinbei Automobile faces a decreasing profit in vehicle businesses, resulted by the declining macro economy and slowing growth in light-weight pickup sales volume. The sales revenue for Jinbei Automobile accounts for RMB 5.15bm 4.64b and 4.80b respectively in the year 2014 to 2016. Profits owning to parent company are RMB -143m, 35.75m and -208m respectively. Jinbei Auto is lagging behind other subsidiaries, with net profits reaching to be RMB -204m and -495m respectively in 2015 and 2016.

Jinbei Automobile will keep profitable key part assets after the transaction to optimize listed companies’ asset quality and lift the company’s values.