Guanghui Baoxin (01293) announced that on December 18, 2023, the company and Guanghui Automobile entered into a renewed procurement framework agreement to renew the existing procurement arrangements. The Group and Guanghui Automobile Group will extend the purchase and sale of certain passenger cars, passenger car parts and accessories from each other from January 1, 2024 to December 31, 2026.
The Group and Guanghui Automobile Group purchase and sell passenger cars and passenger car parts and accessories to each other in accordance with a renewed procurement framework agreement, mainly because the Group is a dealer of luxury passenger car brands (such as BMW, Jaguar Land Rover, Maserati, etc.), and its business is mainly concentrated in East China, Sichuan, Guangdong and nearby provinces and cities. On the other hand, there is a difference between the passenger car brands operated by Guanghui Automobile and the Group's operating brands, and its sales network covers the whole country, but the coverage density is different from the region in which the Group operates. Therefore, the company and Guanghui Auto target different brands, different geographical locations and different customer groups.