Barbarian Yao Zhenhua plans to purchase Qoros with RMB 6 Billion

Shanghai, June 19, Gasgoo - Baoneng Group turns its eye onto another hot field of alternative energy vehicle market after its failure in competition with Wanke Group. It’s revealed that Baoneng Group plans to invest RMB 6 billion to purchase 51% shares of Qoros Auto to develop alternative energy vehicles. It’s said that a professional group of Baoneng has conducted several rounds of responsible investigation on Qoros, and the negotiation has come into a critical period.” But Chery has denied the statement and Baoneng gave no response.

Yibin Municipal Government, Chery Auto, Quantum LLC and Qoros Auto held a signing ceremony on strategically cooperative agreement and investment agreement on April 6th this year, planning to invest RMB 5.5 billion to construct an auto project with an annual capacity of 500,000 units, including 200,000 units’ alternative energy vehicles. It’s revealed that the agreement contains a share transfer agreement, stipulating to transfer 30% of holding shares to the national investment company under Yibin Municipal Government. Suspicion comes out that it may be the main reason for Baoneng to purchase Qoros.

Currently, the domestic market has an overall holding capacity of 190 million, with a large potential market in related financial, logistics, insurance and e-commerce businesses. But the remaining problem is that the strict approval and examination for new alternative energy vehicle projects makes it doubtable whether Baoneng would obtain supports from local governments.