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2.5 billion Yuan needed to expand Haima Motors production capacity

Jorvan From www.gasgoo.com| April 17 , 2007

On April 10, Haima Shares (000572) released profit forecast notice, it is predicted that in first quarter of 2007 Haima sales profit has increased by a big margin, about 300%~350% net profit increase, an increase of 50%-100% in earnings per share.

Haima Shares owns 51% shares, and will utilize the financing shares platform to raise money for the future development.

Haima Motors' model Family monthly sales are 10,000 vehicles. "Within the next three to five years, the investment will reach 2.5 billion Yuan." vice president of Haima Shares, Sun Zhongchun said, "There are four main investments, namely research, new product development, engine project and production expansion project."

Currently There are two manufacturing plant, the total production capacity of the two factories were only 150,000 units, but compared with the speed of new products development, it is inevitable to solve its retarded
"Haima Motors product will range from A0 class to B class models." Sun said that during the "11th Five-Year Plan" period, a third factory of Haima Motors will be built."

In addition to expanding production, research and development of new products require a large amount of capital investment, engine plant project in future will be invested 1.25 billion Yuan, designed annual production capacity will be 150,000 units.

At present, the structure of share percent is Haima Motors takes 51% shares, the FAW Group holds 49%, Hainan government holds 1%. Hainan government has entrusted 1% of the equity shares to Haima Motors, therefore Haima Motors became the largest shareholder. Relying on Mazda technical support, Haima Motors is configuring the brand.

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