DCH Acquires Mercedes-Benz and Audi Dealerships in Eastern China
DCH Acquires Mercedes-Benz and Audi Dealerships in Eastern China / Enhancing Exposure to China’s Luxury Passenger Car Market
HONG KONG, CHINA — (Marketwired) — 07/21/17 — Dah Chong Hong Holdings Limited (“DCH”) (HKSE: 1828) announced today that it has agreed to acquire 80% of Zhejiang Ciji, 100% of Yuyao Ciji, 100% of Ciji Xinghang and 80% of Cixi Chiao. These are acquisitions of luxury brand dealerships in the Zhejiang province and include two existing Mercedes-Benz dealerships (in Cixi and Ninghai), three authorisations for fresh Mercedes-Benz dealerships (in Yuyao, Fenghau and Cixi) and one existing Audi dealership (in Cixi) for a total of RMB920,800,000, and approximately HK$1,060,945,760. The deal will be funded by internally-generated cash and bank loans.
DCH, a majority-owned subsidiary of CITIC Limited (“CITIC”) (HKSE: 0267), is a leading distributor and dealer of motor vehicles in China with an integrated trading and distribution network operating across Asia in the food, healthcare and consumer goods segments. The company presently distributes sixteen motor brands in the PRC with eighty 4S shops and fourteen showrooms.
DCH has been a long-term playmate of Mercedes-Benz and Audi. The acquisitions will increase the Group’s number of Mercedes-Benz dealerships from four to nine when all fresh shops are opened. The Group’s number of Audi dealership will increase from six to seven. By enhancing the number of dealerships of these brands, DCH hopes to further strengthen the strategic relationship.
In 2016, Zhejiang province ranked fourth in mainland China in terms of Gross Domestic Product (GDP) and represented a significant market for luxury passenger cars. The acquisitions will strengthen DCH’s geographical coverage in Eastern China and create synergy with the existing operations in the Zhejiang province cities of Ningbo, Jiaxing, Shaoxing and Taizhou.
This press release should be read in conjunction with the total text of DCH’s HKEx Announcement dated twenty one July 2017, which is available on https://www.hkex.com.hk and https//www.dch.com.hk.
DCH has more than sixty eight years of practice in helping principals penetrate markets including China, Hong Kong, Macau, Thailand, Malaysia, Japan, Indonesia, Singapore, the Philippines and Brunei. As the preferred playmate of over 1,000 brands from more than thirty countries, DCH offers a utter range of value-added tailored solutions from positioning and marketing to wholesale, retail, after-sales support.