Brilliance ** Bohai Bank Injects 3 Billion Financial Services

Following the launch of the Ten Billion Financing Strategy with the China Development Bank, the Brilliance Automotive Group will in turn include Bohai Bank’s 3 billion financing financial services.

On March 15th, Brilliance Automotive Group and Bohai Bank formally signed the "Comprehensive Strategic Cooperation Agreement." Bohai Bank plans to provide corporate credit, project financing, corporate mortgage loans, bills, and domestic payment settlements to the Brilliance Automotive Group in the next three years. A total of 3 billion yuan in financial financing services such as international settlement, capital operations, short-term and mid-term paper services are used to supplement the cash flow of Huachen Group.

This is not the first time Bohai Bank has injected funds into Brilliance Automotive. According to Brilliance, in September 2010, Bohai Bank had approved the credit line with a total amount of RMB 900 million from Brilliance Group. The increase in financing services to the integrated credit facility of RMB 3 billion marks the beginning of a substantial phase of cooperation between the two parties.

In 2010, Brilliance China Motor Co., Ltd. actually sold 120,000 vehicles and did not complete the target of 150,000 vehicles. In order to allow Brilliance to quickly get out of the trough, Bing Yumin, chairman of Brilliance Automotive Group, proposed to complete six strategies and three goals in the “12th Five-Year Plan” period.

Yan Yumin disclosed that the main purpose of this financing is to promote the implementation of Brilliance's "12th Five-Year Plan". According to Brilliance’s latest “12th Five-Year Plan” requirement, Brilliance will strive to complete the production and sales of 1.5 million complete vehicles, 1.5 million engine production and sales, sales revenue of over 200 billion yuan, and profits tax of 20 billion yuan in the “Twelfth Five-Year Plan” period.

In order to achieve the above objectives and change the current sluggish sales of China’s passenger cars, Brilliance Automotive decided to expand its product line and step up research and development in various models of C-class, B+, A-class, A0, A00 and SUV models. In January of this year, the Brilliance China A-Class plant with a maximum annual production capacity of 150,000 units has been officially completed and put into production. It is understood that the compact sedan with the internal codename of A4 is expected to be launched in June this year. Brilliance’s first family SUV model It will also debut during the Shanghai Auto Show this year.

At the same time, in the field of commercial vehicles, the production base of Brilliance Special Vehicles has been successively established in Shanghai, Shenyang, Dalian, and Tieling; the Brilliance Jinbei light truck project with an investment of 1.49 billion yuan has already settled in Shenyang's Dadong District, and heavy truck projects will be introduced.

The full extension of the product line made Brilliance increasingly pressing on funding issues. At present, the financing method created by Yan Yumin for Brilliance is to organically combine industrial capital with financial capital, and continue to open up new channels for the auto industry to enter the money market for direct financing.

“From the current point of view, the financing path of Brilliance is broadly divided into two parts: one is to cooperate with banking financial institutions, and the other is to explore practices in the capital market.” Yan Yumin told reporters. However, the current situation is that it will take time for Brilliance to return to the A-share market as a whole and it will not be able to provide substantial funds for Brilliance development in the short term. Therefore, stepping up financial cooperation with banking institutions will become the most effective financing method for Brilliance.

In fact, from the beginning of last year, Yan Yumin, who has always emphasized that “as long as there are good projects that can draw funds,” has successively cooperated with financial institutions to find gold for Brilliance in transition.

On June 29, 2010, Brilliance Automotive and China-Africa Fund jointly established "China-Africa Brilliance Investment Co., Ltd." responsible for the production and sales of China and Gold Cup models in Africa. Subsequently, in September, Brilliance and the China Development Bank signed a financing framework agreement of 10 billion yuan. They plan to sell short-term financing bills with a total value of 2 billion yuan to the interbank market in China within two years, and implement the remaining 8 billion yuan through various financing channels. Financing project. In January of this year, Brilliance quietly signed a financing framework agreement with Everbright Bank in Xiamen for 15 billion yuan.

Yan Yumin said: "Because of the impact of the registered capital, the financial cooperation between Brilliance and Bohai Bank is limited to 3 billion yuan. In the future, as the cooperation between the two parties deepens, there will be further increase in the level of financial credit."