Changan Automobile Group sells 20% stake in Dima Special Vehicle

Shanghai December 1 (Gasgoo.com) China Changan Automobile Group, the parent of Chongqing Changan Automobile Co Ltd (000625.SZ), is planning to sell 20% stake it holds in Chongqing Nanfang Dima Special Vehicle Co., Ltd. ("Nanfang Dima") for 9.3 million yuan ($1.4 million), Shanghai Securities News reported Wednesday.

Chongqing Dima Industry Co Ltd, which holds a 34% stake in Nanfang Dima, is the only potential buyer for the stake, according to the transfer terms and conditions.

Nanfang Dima was established on August 16, 2006 with a registered capital of 30 million yuan and is specialized in manufacturing and selling fire trucks and other special purpose vehicles. Changan has a 50% stake in the company at present and the rest 16% is held by Chongqing Dajing Industry Co Ltd.

Nanfang Dima is not satisfying its shareholders in terms of its current performance. In 2009, it posted revenue of 82.47 million yuan, generating net profit of only 430,000 yuan. In the first ten months this year, it reported revenue of 7.15 million and an operating loss of 90,000 yuan, the company said in a statement.