Xinhua Jin (600735): Wholly Owned Subsidiary To Complete Foreign Investment

Shandong Xinhua Jin International Limited by Share Ltd announcements of wholly owned subsidiaries completing foreign investment

I. The Outline of foreign investment. The twenty-third session of the eleventh board of directors of Shandong Xinhua Jinhua international Limited by Share Ltd (hereinafter referred to as the "company") considered and adopted the motion on foreign investment in Japan's Carchs company. The company intends to invest in overseas Chinese wholly owned subsidiary of China Vietnam limited liability company (English Name: EMMINENCE, LLC) (hereinafter referred to as "Hua Yue company") to invest in Japan's Carchs Holdings (hereinafter referred to as "Carchs") as the main body of investment. The specific way of investment is to directly purchase shares issued by Carchs, and the investment amount should not exceed 2 million yuan (the final investment amount is determined according to the price of the purchase stock).

The purchase price is Carchs the average price of the closing price of stock in the first 30 days of April 25, 2019.

It is estimated that after the completion of the investment, Hua Yue will become the third largest shareholder of Carchs, with a shareholding ratio of not more than 5%. The specific contents are detailed in the notice issued by the Shandong Xinhua Jinan International Limited by Share Ltd on the overseas investment of wholly owned subsidiaries in April 26, 2019 (bulletin number: 2019-024).

Two. Progress in foreign investment

In May 15, 2019, Hua Yue and Carchs signed the "equity subscription contract". Hua Yue company will subscribe to Carchs part of the treasury stock. The subscription amount is 869565 shares, the subscription price is 230 yen per share, and the total price is 199999950 yen (converted to RMB exchange rate in May 15th, equivalent to RMB 12 million 540 thousand yuan).

After the completion of the stock option, the 869565 stocks of the shares subscribed by Hua Yue company will be converted into common stock.

As of the date of this announcement, Hua Yue company has paid the total price of the stock subscription to the Carchs through the account of the permanent agent opened by Hua Yue company in Nikko Securities, Japan, and 869565 shares of common stock have also been registered to the account opened by China Vietnam company in Nikko Securities, and Huayue company has completed the subscription to Carchs stock.

Huayue company holds 869565 shares of Carchs stock, accounting for 4.21% of the shares issued by Carchs (excluding stock stocks), and is the third largest shareholder of Carchs.

The Huayue company's investment in Carchs is based on the long-term strategic cooperation between Carchs and the company in the field of used cars.

Notice hereby.

Shandong Xinhua Jin International Limited by Share Ltd

Board of directors May 17, 2019