China Yongda Automobiles Services : Yongda Acquires the Entire Issued Shares of Inchca...

（Hong Kong，02 October 2019）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 the Company entered into the Sale and Purchase Agreement with Inchcape Overseas Limited （'Inchcape Overseas'）and agreed to acquire the entire 776，167，720issued shares of Inchcape Asia Pacific Limited （'Inchcape Asia Pacific'）。The consideration of the Acquisition was determined after taking into account of the factors including the net assets，profitability and business prospect of Inchcape Asia Pacific。Based on the due diligence assessment，the consolidated net assets of Inchcape Asia Pacific was approximately RMB590。9 million as at 30 April 2019，including cash and cash equivalent of approximately RMB367。3 million and after deducting borrowings from financial institutions of approximately RMB22。4 million。The consideration was RMB830。0 million and the Acquisition premium was RMB239。1 million。The audited consolidated net profit after tax of Inchcape Asia Pacific for the year ended 31 December 2018 was RMB629。0 million。

Inchcape Overseas is a direct wholly-owned subsidiary of Inchcape （LSE：INCH），which is a global distributionand retailleader for leading OEM partners in the automotive sector。

Currently，Inchcape Asia Pacific has a Porsche 4S dealership and an authorised Tesla repair centre，both in Nanchang City，Jiangxi Province。It also operates the only Mercedes-Benz 4S dealership in Jiujiang City，Jiangxi Province and the only Lexus 4S dealership in Shaoxing City，Zhejiang Province，and has built solid client bases and gained first-mover advantage。

The Acquisition will further expand Yongda's 4S dealership network of luxury and ultra-luxury automobiles brands，in particular Porsche，Mercedes-Benzand Lexus and enrich Yongda'sluxury and ultra-luxury automobiles brand portfolio。With the steady growth of sales of automobiles brandsincludingPorsche，Mercedes-Benzand Lexus in the domestic market，the Acquisition will further supplement the network layout of Yongda in key yet undeveloped potential regional markets。The Company will be in a favorable position toseize market development opportunities，improve profitability，and continue to enhance Yongda's one-stop and all-round vehicle services。

Recently，many favorable policies are released for the automobile industry，including thepromotion ofthe updateand upgradeof automobile consumption，the promotion ofautomobiles replacement，a gradual loosen or removalof car purchase limits，provision of incentive schemes for new energy vehicle buyers and cancellationof second-hand car transactionpolicy。Meanwhile，positive factors such as accelerated demandof luxury automobile，more competitive vehiclemodelcycle and policy support will benefit the future growth of the Group。Since the potential of automobile consumption is further stimulated，Yongda's diversified business with balanceddevelopment and the advantages of large-scale network coverage will enable the Group to graspthe opportunity。Well-known investment banks are optimistic about the investment value of Yongda and give the Company a 'Buy' rating。

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About China Yongda Automobiles Services Holdings Limited（Stock Code：3669）

Yongda Auto is a leading passenger vehicle retailer and comprehensive service provider in China，focusing on luxury and ultra-luxury automobile brands，including BMW，Bentley，Aston Martin，Porsche，Mercedes-Benz，Jaguar，Land Rover，Audi，Lincoln，Volvo，Infiniti，Cadillac，and Lexus。Yongda Auto's extensive 4S dealership network has a strong presence in China。Yongda Auto is committed to providing a comprehensive range of automobile-related services，which includes new vehicle sales，automobile finance and insurance，auto accessories，after-sales services，pre-owned vehicles replacement and sales，repair chain brand，auto spare parts and maintenance and other related services。The Group builds an omni-channel retail industry condition combined by online platform and offline networks，creating efficiency auto-life service platform。The Group has garnered China's Top 500 Enterprises （中國企業500强），China Well-known Trademark （中國馳名商標），China's Top 100 Automobile Dealerships （中國汽車經銷商集團百强企業）and Civilized Unit in China （全國文明單位）。