Goldman Sachs Unloads Geely Stock

Source: Company Disclosure, ChinaScope Financial (Data)

+       GS Capital Partners VI Fund L.P., a private equity fund owned by Goldman Sachs, is seeking to raise HKD 1.98 to 2.04 billion by selling 600 million Geely Automobile Holdings Ltd.’s (0175: HKG) shares at a price range of HKD 3.30-HKD 3.40 per share. The price reflects a discount of 5.0 to 7.8 percent to the Hong Kong-listed stock's yesterday closing price of HKD 3.58.

+       According to the latest announcement made by Geely, it has been notified by GS Capital Partners VI Fund L.P. to convert approximately HKD 873.88 million worth of convertible bonds (CBs) to a total of 470 million common shares at the conversion price of HKD 1.8583 apiece. In addition, GS Capital Partners VI Fund L.P. transferred warrants into approximately 299.53 million shares at a strike price of CNY 1.9816 apiece. Thus, GS Capital Partners VI Fund L.P. has more than 700 million common shares on hand.

+       After Goldman launched the share sale plan, Geely fell as much as 4.5 percent and closed at HKD 3.54 today, a 1.12 percent loss.

Sales of Geely (175: HKG) has accelerated in 2012, and is expected to remain high due to the company’s expansion into the fast-growing SUV segment. The strong performance has elevated stock prices, thereby profiting Goldman Sachs after its three-year investment.

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Mar 23 - Geely’s Net Profits Increased by 13% YoY to CNY 1.54 Billion in 2011

Source: Hong Kong Stock Exchange, ChinaScope Financial (Data)

+       The annual report of Geely Automobile Holdings Ltd. (175.HK) reveals that total revenue for the group was CNY 21 billion in 2011, up 4% year-on-year, and net profit was CNY 1.54 billion, a 13% year-on-year increase.

+       Geely sold 421,600 vehicles last year, a 1% YoY growth, and export volume increased 93% YoY to 39,600 vehicles.

+       Geely’s 2012 sales target is 460,000 vehicles, a 9% YoY sales volume increase.

Geely’s revenue growth in 11H2 was negative, resulting in an annual growth rate of 4%. Gross margins were stable in 2011.

Overseas markets rebounded strongly, while domestic market revenue growth in 2011 was negative.

Other News Headlines:

n  Treasury Deposit Bid Rate at Record High

n  Net Profit of Minsheng Banking Increases 58.81%; Agricultural Bank Increases 28.5%

n  China Unicom: 2011 Revenue Exceeds CNY 200 Billion, Net Profit Up 14%

n  Geely’s Net Profits Increased by 13% YoY to CNY 1.54 Billion in 2011

n  Tingyi (Cayman Islands): 2011 Net Profit Reaches USD 419.5 Million

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