For the reason for his resignation, the announcement explained that Lu Zhengyao should resign in order to devote more time to the job performance and other businesses of Shenzhou UCAR Co., Ltd. Effective June 9, 2020.
announced that Lu Zhengyao will no longer serve as a member of the company’s nomination committee after resigning.
The announcement shows that Lu Zhengyao has confirmed that he has no disagreement with the board of directors; and there are no other matters concerning his resignation that must be referred to The Stock Exchange of Hong Kong Limited or the company’s shareholders Note.
Shenzhou Car Rental will make a further announcement regarding the appointment of the chairman of the board and the composition of the nomination committee. The Board of Directors expresses its sincere gratitude to Lu Zhengyao for his contributions to the Board during the tenure of the company.
It is worth mentioning that the announcement of China Car Rental also mentioned that, according to the terms of the financing agreement between the company and certain financial institutions, if Lu Zhengyao ceases to be a director of the company , Then the lender may declare that the outstanding principal, accrued interest and other payable amounts under the loan are immediately due and payable. As of the date of this announcement, the total outstanding principal of the loan owed by the company is approximately US$168 million. The company has not received any request from the lender to repay the loan immediately. The company’s management is currently obtaining lender waivers. Further announcements regarding the status of loans and waivers will be made in due course.
Lu Zhengyao, who is facing the crisis of Ruixing, is advancing the sale of car rental in China.
In the morning of June 1, China Auto Rental announced that the board of directors had been informed by the major shareholder, China UCAR, that China UCAR had been with Beijing Automotive Group on May 31. Co., Ltd. (BAIC Group) entered into a non-legally binding strategic cooperation agreement.
According to the strategic cooperation agreement, BAIC Group will acquire no more than 450,790,855 shares from UCAR, which is equivalent to about 21.26% of the total issued share capital of China Car Rental.
According to the first phase of the transaction completed by China UCAR and Huaping Department, 21.26% of the shares are already held by Lu Zhengyao’s Shenzhou UCAR in China. changeIn other words, if the deal with BAIC is completed as such, BAIC Group will be promoted to the largest shareholder of Shenzhou Car Rental, and China UCAR will withdraw completely.
Shenzhou Car Rental stated that the strategic cooperation agreement is not legally binding in nature and there is no guarantee that a formal agreement will be concluded. The details and terms of the cooperation between UCAR and BAIC Group are still under negotiation, and the final terms have not been reached as of the date of this announcement.
The official website information shows that Shenzhou Car Rental Co., Ltd. was established in September 2007 and is headquartered in Beijing. According to the survey report of the third-party agency Roland Berger, China Car Rental is currently the most recognized car rental service provider in China, and has various operational and financial indicators such as fleet size, network coverage, market share and business income. It is an absolute leader in China’s car rental industry.