CRRC transfers 51% share of CRRC TEV with RMB 926 million

Shanghai (Gasgoo)-On Oct. 27, CRRC released a statement, saying that its wholly owned subsidiary, CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd (CRRC Zhuzhou Institute) planned to transfer 51% share of Hunan CRRC Times Electric Vehicle Co., Ltd. (CRRC TEV) to CRRC's holding company by agreement with RMB 926.4002 million.

CRRC TEV was founded in July, 2007 with registered capital of RMB 574 million. Its main businesses cover manufacture, sale and after-sale services for buses, special vehicles and parts, and electric and motor products. At present, the share structure of CRRC TEV is as following: CRRC Zhuzhou Institute, SANY Group, Hi-Tech Venture Capital, Xiao Keng and Deng Pengtu hold share of 87.37%, 1.39%, 0.70%, 10.11% and 0.43% respectively.

According to the statement, up to June 30, 2017, the total audited assets of CRRC TEV reached RMB 0.6239 billion, the net asset, revenue in the first half of 2017, and net profit are respectively RMB 755 million, RMB 981 million, and RMB 2,335,600. In 2016, CRRC TEV posted revenue of RMB 0.3788 billion and net profits of RMB 202 million.

The statement pointed that CRRC Zhuzhou Institute can't control CRRC TEV and will not consolidate CRRC TEV's financial performance into the financial statement after finishing the trade. The acquisition is benefit for CRRC to focus on major businesses like rail transportation, meeting CRRC's development positioning in the future.