For the Volvo listing issue, which has received much attention, its controlling shareholder Geely responded for the first time. On August 4, Li Donghui, director, executive vice president and CFO of Zhejiang Geely Holding Group Co., Ltd., said in an interview with 澎湃News () that Volvo did not have an independent listing plan. If Hong Kong listed companies are willing, they still give priority to injection. Geely Automobile (0175.HK). At the end of last year, Volvo successfully raised 5 billion Swedish kronor from the Swedish investor office. Some analysts pointed out that Volvo's 100% holding from Geely to equity diversification was the standard action before the IPO. In this regard, Li Donghui said that last year's equity financing plan was solely to improve Volvo's capital structure, increase the equity ratio, and reduce the asset-liability ratio. According to Li Donghui, as a car manufacturer, reserve funds for development. Judging from the 2016 annual report, Geely Automobile has more cash than bank loans, which is in line with the operating practices of the world's leading auto manufacturers. However, the inclusion of Volvo in Geely has always been an option for Geely Holdings. As early as the acquisition of Volvo by Geely in 2010, Geely Automobile (0175.HK) announced that it would sell all or part of its business and related assets involved in the Geely Holdings acquisition to Geely Automobile. From 2010 to 2016, the above irrevocable commitments have been included in the “Competitive Business†section of the Geely Automobile Annual Report. For the background of the above “irrevocable commitmentsâ€, Li Donghui explained the news for the first time: According to the trading specifications of listed companies in Hong Kong, Geely Group, as a major shareholder, promised not to compete with Geely Automobile (0175.HK). Therefore, when acquiring Volvo, it was the first to open the injection opportunity to Geely Automobile. "If Geely Automobile is willing to hold it, Geely Holding will not hesitate or bargain, we hope to cooperate. After all, as a listed company, it is difficult to acquire Volvo through market financing. It will be much lower.†But at the time, Geely’s small and medium-sized shareholders were not willing to inject Volvo’s assets, so the group’s compliance with the listing rules gave Geely Automobile the above promise. Li Donghui further said that if the independent director of Geely Automobile decides to inject Volvo in the future, the group will still inject Volvo according to the promise. Of course, it is the fair market value today. After all, the value of Volvo has doubled in recent years. Aluminum Square Tube,Aluminum U Channel,Aluminum Extrusion Angle,Aluminum Extrusion Channel Guangyuan Aluminum , https://www.guangyuan-alum.com
Geely said that Volvo does not have a separate listing plan to inject Geely cars is still a priority