Shanghai, August 9, ZXZC - August 8, FAW Xiali released its volume of production and sales of July. Data shows that production in July was 2,509 units, 1,450 units in last July, an increase of about 73%. The cumulative output of the first seven months is 16,342 units, a decrease of about 26.5% compared with last years' 22,235 units. Sales in July was 1,989 units, 1,696 units in last July. The cumulative sales of the first seven months was 13,527 units, a decrease of about 35% compared with last years' 20,729 units.

There has always been problems in FAW Xiali's management. Though selling assets may allow FAW Xiali to see short-term profit in 2016, FAW Xiali has experienced a loss of 266 million yuan in 2017 first quarterly results, and a expected loss of about 665 million yuan to 715 million yuan in mid-year results. Against this background, BENEFO, the second biggest shareholder, proposes its plan of reducing shareholding once again to no more than 79.5 million shares( no more than 4.99% of the total share capital). In other words, BENEFO may cash 4 million yuan.

This is not the first time that BENEFO reduces FAW Xiali shares. Although BENEFO says the reduction is for operating funds, market analysts tend to believe it is because of FAW Xiali's poor management and inabilities of in the competitions with its subsidiaries.