Baoneng likely to become shareholder of Qoros Auto

Shanghai (Gasgoo)- Qoros Auto’s share transfer shows new progress recently. Changjiang Equity Exchange released an announcement on its official website on November 17th, stating that Qoros Auto would transfer its 25% shares with a target price of RMB 1.625 billion. The public solicitation period spans from November 17th to December 14th.

It should be noticed that it’s the second time for Qoros Auto to transfer its shares in Changjiang Equity Exchange. Qoros Auto announced for 25.5% share transfer on July 24th with a bidding price of RMB 1.66b but failed.

At present, the shareholders of Qoros are Chery and Quantum LLC, each with half of the company’s shares. The joint venture is always targeting at high-end market, but its market performance is lagging behind other joint-venture brands. Data shows that it has a total sales volume of 3,816 units in Q3 this year. Its cumulative sales number reaches 11,000 units till September this year, ranking 80th among all brands.

Financial data also shows that Qoros’s operating revenue reaches RMB 2.65 billion with a loss of RMB 1.328 billion in 2016. Its operating revenue in the previous ten months this year reaches RMB 1.198b with a loss of RMB 1.069 billion.

It’s quite understandable Qoros is urgent to find new investors, with Baidu, Wuliangye, Baoneng, Tencent all being involved. Information from all aspects shows that Baoneng has the greatest possibility to become the next investor. It’s revealed by insiders that Qoros Auto has negotiated and discussed for a long time with Baoneng. It’s also known that Baoneng has planned to invest RMB 14 billion to build a NEV production base covering an area of 2m square meters with an annual capacity of 300,000 units.