Gasgoo.com (Shanghai May 23) - Haima Automobile's third and fourth largest shareholders, Zhengzhou Investment Holding and Zhengzhou Financial Development, have agreed to transfer their shares in the Hainan-based manufacturer, the China Securities Journal reported today. The transfer will affect 199.6 million shares in Haima, 12.14 percent of its total stock.
Reportedly, Zhengzhou Investment Holding and Zhengzhou Financial Development combined own a total of 99.8 million circulating shares in Haima, equivalent to a 6.07 percent stake in the manufacturer. The two companies have publicly agreed to transfer their shares to Haima Automobile Group. The transfer needs to be approved by relevant bodies in the State-owned Assets Supervision and Administration Commission before completion.
Decreased growth in the automobile market beginning last year has affected own brand manufacturers like Haima most severely. According to its quarterly performance review, Haima earned a total of 1.98 billion yuan ($314.97m) in business returns in the first quarter of the year, representing a year-on-year decrease of 34.52 percent for the manufacturer. Haima's quarterly profit fell a full 74.09 percent, finishing at 21.66 million yuan ($3.44m). Among its balance sheets, the government supplied 22.15 million yuan ($3.52m) in financial aid.
The manufacturer's performance has been in steady decline since 2008. Even in 2009, when most own brands were announcing strong sales, Haima still managed to report a deficit. In response to low sales, the manufacturer began restructuring its product lineup. However, its sales continued to decrease into last quarter.
