Yongda Auto Acquires One Audi and Two Volvo 4S Stores

HONG KONG, June 3, 2014 /PRNewswire/ -- China Yongda Automobiles Services Holdings Limited ("Yongda Auto" or the "Company" and, together with its subsidiaries, the "Group", stock code: 03669.HK), a leading passenger vehicle retailer and comprehensive service provider in China, is pleased to announce that its wholly-owned subsidiary-Shanghai Yongda Automobiles Group Co., Ltd. completed the acquisition of three luxury vehicle 4S stores in Shanghai including the stock equity of one Audi 4S store and two Volvo 4S stores. This acquisition project was another significant move of Yongda Auto to continuously expand its ultra-luxury vehicles' market share in Shanghai area based in East China region. It not only reflected the expertise and strength of Yongda Auto itself, but also provided a solid foundation for the Group's rapid growth of scale in the future.

As the strategic retailer of both Faw-Volkswagen-Audi and Volvo automobiles, the number of Yongda Audi 4S stores in Shanghai has reached four and the number of its Volvo 4S stores has reached three after acquiring two Volvo 4S stores and one Audi 4S store this time. The acquisition boosted the market share of Yongda's ultra-luxury vehicle in Shanghai, and will also increase Yongda's sales proportion of Audi and Volvo in China market as well as realizing the rapid growth of the Group's future performance. In recent years, Yongda Auto, as a leading professional passenger vehicle retailer in China, has expanded its sales network rapidly, especially in the luxury and ultra-luxury vehicle field. As at the end of 2013, 101 luxury automobile stores had been opened or to be opened by the Company, within which 45 opened 4S stores are luxury or ultra-luxury vehicle stores, and 29 out of the 34 authorized to be opened stores are luxury or ultra-luxury stores. In 2014, Yongda Auto will continue to expand in order. Its business in the first quarter is going well and it has added two 4S retail stores and one luxury second-hand vehicle centers, mainly focused on luxury and ultra-luxury vehicle brands.

In view of the long-term increasing potential of luxury vehicles market in Mainland China, Yongda Auto has always been optimistic about luxury vehicles' developing opportunities in China, maintaining and developing the long-term stable strategic cooperative relations with luxury and ultra-luxury vehicle brands all along. Yongda is concentrating on the luxury and ultra-luxury vehicle brands, and continue to focus on the expansion strategy of luxury vehicle brands while maintaining low-cost acquisition strategy. In 2013, Yongda has successfully completed the equity acquisition of four BMW, one Audi, one Volvo, one Buick 4S stores and one BMW authorized service center. In the future, the luxury vehicle network expansion of Yongda will  bolster the company's profitability.

Yongda's M&A of one Audi and two Volvo 4S stores this time reflected that Yongda is pushing forward its M&A and network expansion strategy. In the future, with the continuous expansion of luxury and ultra-luxury brand portfolio (including Bentley, Porsche, Jaguar Land Rover, BMW, Mini, Audi, Volvo, Cadillac and Infiniti, as well as newly authorized American luxury brand Lincoln and luxury brand customized stock vehicle and British retro luxury sports vehicle Morgan, etc.), Yongda Auto will realize rapid growth of its scale and continuous increase of benefit.

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