Guanghui Auto faces financial crisis and plans to sell 24.5% of its shares

Recently, China's largest dealer group Guanghui Auto has attracted much attention due to financial problems. According to reports, the company failed to pay employees' wages in full and on time, and several stores were closed, resulting in customers being unable to pick up their cars. In order to solve its financial difficulties, Guanghui Auto signed an agreement with Jinzheng Technology to transfer its 24.5% stake (approximately 2.03 billion shares) to Jinzheng Technology after December 19, 2024. The specific transfer price will be determined by negotiation between the two parties. Although Guanghui Auto still ranks among the top dealers in the 2023 dealer rankings, this incident reflects the severe challenges facing dealers.