China Harmony New Energy Auto Holding Limited 中國 ... - HKEXnews

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China Harmony New Energy Auto Holding Limited 中國和諧新能源汽車控股有限公司 (Incorporated in the Cayman Islands with limited liability)

(Stock Code: 03836)

STRATEGIC COOPERATION FRAMEWORK AGREEMENT WITH ALIBABA AUTOMOBILE AND RESUMPTION OF TRADING This announcement is made by China Harmony New Energy Auto Holding Limited (the “Company”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “SFO”). The board of directors (the “Board”) of the Company (together with its subsidiaries, the “Group”) is pleased to announce that, on November 2, 2015, the Company entered into a strategic cooperation framework agreement (the “Cooperation Framework Agreement”) with the Alibaba Automobile business unit (“Alibaba Automobile”*, “阿里汽車”) of Zhejiang Tmall. com Technology Co., Ltd.*（浙江天猫技術有限公司）, an affiliate of Alibaba Group Holding Ltd. (阿里巴巴集團控股有限公司, a company listed on the New York Stock Exchange, stock code: BABA), to carry out comprehensive strategic cooperation in respect of “Internet + Automobile Sales and Services”. To the best knowledge of the directors, having made all reasonable enquiries, Alibaba Group Holding Ltd. is independent of and not connected with the Company or any of its connected persons. Major Details of the Cooperation I.

Cooperate to build up “Harmony-Alibaba Automobile Car Port” Network By leveraging on the national channel network of the Group, especially the independent comprehensive after-sales services network, the parties will pursue innovation on service outlets and service model, and cooperate to build up “Harmony-Alibaba Automobile Car Port” (“和諧 － 阿里汽車車碼頭”) physical network in approximately 80 cities across the country. 1

The parties will work together to build the “Harmony-Alibaba Automobile Car Port” Network into a car chain service channel, with integrated functions including vehicle sales supports, delivery, insurance agency, auto finance, pre-owned cars and after-sales services, leveraging upon the independent comprehensive after-sales services network of the Group, so as to provide better and more convenient services to car owners. The parties intend to establish more than 300 “Harmony-Alibaba Automobile Car Port” outlets within two years. As at the date of this announcement, 47 “Harmony-Alibaba Automobile Car Port” outlets have already been put into operation based on selective independent comprehensive after-sales services outlets owned by the Group. II. Cooperate to develop creative automobile e-commerce model The Group has opened an online flagship store and an online franchise store branded China Harmony Auto on Tmall platform to sell luxury cars, electric vehicles, parallel imported cars, pre-owned cars, after-sales maintenance and repair service package, etc., with an aim to increase the customers flow in offline physical network, enhance the efficiency of sales and services, and provide high quality online car purchase and service experience to consumers. III. Cooperate to develop pre-owned car business By leveraging on its dealership network, comprehensive after-sales outlets and standardized car assessment system, the Group aims to provide precise offline assessment for pre-owned cars, and will collaborate with Alibaba Automobile to build up a standardized after-sales maintenance and repair services system for pre-owned cars and set a new standard for internet pre-owned car sales. Alibaba Automobile’s pre-owned car platform will connect the Group’s pre-owned car platform on the condition that it complies with Alibaba’s data security policy. By doing this, the parties will provide authenticated premium pre-owned cars for a large number of users and make the data of pre-owned car transparent, in order to provide truly convenient and reliable pre-owned car transaction experience to the customers. IV. Cooperate to engage in internet auto finance Based on the characteristics of car sales and incorporating big data analysis, the parties will provide convenient, fast and favorable auto finance service and other financing products that meet the demand for internet auto finance. Moreover, the parties will also proactively to explore strategic cooperation on automobile financial lease and timeshare lease. Reasons for the strategic cooperation The directors of the Company believes that entering into of the Cooperation Framework Agreement will bring synergies to the Group and Alibaba Automobile, and is in the interest of the Company and its shareholders as a whole, and is in line with the Group’s strategy development targets. The reasons are as follows: •

as Alibaba is a leading global e-commerce platform and Alibaba Automobile covers 90 million car owners, the strategic cooperation could help attract more customers to car sales and after-services businesses for the Group;

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it’s the Group’s important strategy to proactively develop independent comprehensive after-sales services. With our own advantages in offline physical network, the cooperation in building “Harmony-Alibaba Automobile Car Port” system will help to diversify the independent comprehensive after-sales services of the Group, capitalize on its flexibility and bring new profit growth points, making it a more comprehensive and one-stop super offline service platform;

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as a great supplement to the offline dealership outlets, automobile e-commerce services will be helpful to enhance the Group’s sales efficiency and speed up the turnover of our inventories; and

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in addition, Alibaba Automobile is able to provide creative internet services in respect of parallel imported cars, pre-owned cars and auto finance. As a result, it can help the Group to further enhance its competitiveness in such areas and diversify its earnings sources.

Information on the Group The Group is a leading vehicle dealership group and comprehensive after-sales service group in China that deals exclusively in luxury and ultra-luxury passenger vehicles, with proactive developments in new energy automobile business. Dealership outlets of the Group distribute luxury and ultra-luxury brands including BMW, MINI, Lexus, Jaguar, Land Rover, Volvo, ZINORO, RollsRoyce, Aston Martin, Ferrari, Maserati and etc., making the Group a leading exclusive luxury and ultra-luxury dealership group in China in terms of number of brands covered. The Group’s independent comprehensive after-sales services outlets are operated under the brands of “Harmony Auto Maintenance (和諧修車)” and “Harmony Auto Fast Repair (和諧快修)”, offering aftersales services for mainstream luxury and ultra-luxury automobile brands, and operating one of the largest comprehensive after-sales service networks in China. Information on Alibaba Automobile Alibaba Automobile is the internet automobile platform of Alibaba Group Holdings Ltd.. Alibaba Automobile takes advantage of its big data marketing capability, auto finance business and 90 million car-owners base on its online platform, and coordinates and cooperates with its partners along the automobile industry chain to provide one-stop automobile “online-to-offline (O2O)”, integrated services covering “inspection, selection, purchase, use and sale” to car-owners in a wireless business setting. In the event that any specific cooperation contemplated under the Cooperation Framework Agreement constitutes notifiable transactions of the Company under the Listing Rules, the Company will make further announcements as and when appropriate pursuant to the requirements under the Listing Rules. Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

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RESUMPTION OF TRADING At the request of the Company, dealing in the shares of the Company has been halted with effect from 9:00 a.m. on November 2, 2015 pending the release of this announcement. Application has been made by the Company to the Stock Exchange for resumption of trading in the shares of the Company with effect from 9:00 a.m. on November 3, 2015 following the publication of this announcement. By Order of the Board China Harmony New Energy Auto Holding Limited Feng Changge Chairman of the Board Zhengzhou , the People’s Republic of China, November 2, 2015 *  For identification only

As at the date of this announcement, the executive directors of the Company are Mr. Feng Changge, Mr. Liu Fenglei, Mr. Yang Lei, Mr. Qian Yewen and Ms. Ma Lintao, the non-executive director of the Company is Mr. Wang Nengguang, and the independent non-executive directors of the Company are Mr. Xiao Changnian, Mr. Liu Zhangmin and Mr. Xue Guoping.

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