Due to the poor economic situation in China in recent years, the overall sales environment of the Chinese automobile market has declined, and the sales performance of independent brands has not been as expected. Considering the continued impact of the new crown pneumonia epidemic on the industry, Yulon Automobile followed the principles of stability and conservativeness after discussion with accountants. For the accounts receivable and vehicle technology assets in the 2019 account, the provision of loss provisions and asset impairment is a one-time effect. The impairment of the listed assets will not affect the company's cash flow and the operating side will not be affected.
The main purpose of Yulon Automobile's capital reduction is to improve the financial structure, help to increase future net value per share, and earnings per share (EPS). This case will be submitted to the shareholders meeting of Yulong Automobile in June 2020 for discussion.
The main purpose of Yulon Automobile's capital reduction is to improve the financial structure, help to increase future net value per share, and earnings per share (EPS). This case will be submitted to the shareholders meeting of Yulong Automobile in June 2020 for discussion.
Yulon Motors said that after this financial adjustment, Nazhijie's transformation of asset-light operation mode can adapt to the future and develop in a healthier way. In other words, Nazhijie's basic operations are largely unaffected.
In response to changes in the industrial environment and future development opportunities, Yulong Group has begun a strategic transformation of its own brands since 2019, fully opening the vehicle platform and R & D energy in the automotive R & D value chain to multiple customers, and sharing resources. Create scale and reduce costs. Yulon Motors also strives to acquire overseas brands such as Muses and Adiva under the strategic transformation of its open platform. It also establishes stable cooperative relationships and actively expands diverse customer markets.
In 2020, Yulon and Hon Hai signed a joint venture agreement to set up a company to promote an open platform and a shared business model. In the future, under the advantages of the open platform and ecological chain of the joint venture company, it will be one of the customers of the joint venture company. , Will continue to launch new products to meet market demand.
