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(Yicai Global) Nov. 21 -- Faw Car Co. [SHE:000800] said that it plans to sell Red Flag Car component building and processing assets to its parent company -- Faw Group Corp. -- for USD43.56 million (CNY289 million), which includes value-added tax.
The company will mainly use the proceeds to fund production, improve liquidity, optimize its asset structure, increase operating funds, develop independent businesses and up operation and management efficiency.
The value of transactions between Faw Car and its parent this year was up to CNY335 million as of Oct. 31.
This is the second time that Faw Car transferred relevant assets to Faw Group since it sold Red Flag Car-related assets to the parent last November for CNY428 million.
After that deal, Faw Car's financials improved. Its business revenue was CNY19.827 billion during the first three quarters, representing annual growth of 32.17 percent.
Its net profit attributable to shareholders was CNY291 million, up 140.69 percent annually.