Grand Baoxin Auto Expands Business with Strategic Partnerships and Overseas Operations.

Grand Baoxin Auto Group has entered into a cooperation framework agreement with its controlling shareholders and partners to launch a second-hand car business, expand overseas operations, and enhance business operations through shared resources. The agreement is initially set for one year and may lead to growth and diversification opportunities for the company. Trading of its shares was temporarily halted pending this announcement.

The Chinese automotive industry is witnessing a significant shift towards new energy vehicles (NEVs) and shared services, and Grand Baoxin Auto Group Limited (GBAG) is positioning itself at the forefront of this transformation. On 12th April 2021, GBAG announced a strategic cooperation agreement with its controlling shareholder, Beijing Langu Jihu Automobile Technology Co., Ltd. (ARCFOX) [1].

This agreement is in line with the favorable national policy promoting the development and universal use of NEVs and their potential market opportunities [1]. Under the terms of the agreement, ARCFOX and GBAG will share resources to establish an integrated service system on traveling, electric charging, vehicle purchase, networking, after-sales maintenance, and living style, aiming to enhance customers' experience [1].

GBAG plans to put these cooperation plans into action in five major cities in China by the end of April 2021 and further extend to 20 cities by the end of the year [1]. This strategic move will lay a solid foundation for long-term cooperation between the two companies and contribute to GBAG's goal of being market-oriented, integrating and optimizing existing resources, enhancing its NEV sales and service network coverage, and facilitating the construction of a comprehensive and diversified customer service system [1].

The entry of this strategic cooperation agreement by GBAG with ARCFOX is expected to be beneficial for the company in achieving its future strategies and long-term plans [2]. GBAG's stock was temporarily halted pending this announcement [2].

Sources:
[1] MarketScreener. (2021, April 12). China Grand Automotive Services Co., Ltd. Enters into a Strategic Cooperation Agreement with Beijing 33443594. https://www.marketscreener.com/quote/stock/CHINA-GRAND-AUTOMOTIVE-SE-6500648/news/China-Grand-Automotive-Services-Co-Ltd-Enters-into-A-Strategic-Cooperation-Agreement-with-Beijing-33443594/
[2] MarketScreener. (2021, April 12). Grand Baoxin Auto VOLUNTARY ANNOUNCEMENT ENTRY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN CGA. https://ca.marketscreener.com/quote/stock/GRAND-BAOXIN-AUTO-GROUP-L-9604008/news/Grand-Baoxin-Auto-VOLUNTARY-ANNOUNCEMENT-ENTRY-OF-THE-STRATEGIC-COOPERATION-AGREEMENT-BETWEEN-CGA-32943041/