Ssangyong - PricewaterhouseCoopers clear SAIC of theft and mismanagement

• The claims of so called theft by SAIC of Ssangyong technology are nonsense.
  
• In the management operation of Ssangyong, SAIC did not make major mistakes.

By the Korean court appointed PricewaterhouseCoopers to investigate "Shuanglong bankruptcy" conclusions released ---

Yesterday, heavy Shanghai, Shanghai Automotive Group Co., Ltd. (hereinafter referred to as "Shanghai Automotive", 600104.SH) in its Hongkou District on the road with Kerry's staff training center held 2008 Annual General Meeting of shareholders in the shareholder question link, president of Shanghai Automotive Chen Hong to answer questions of shareholders, focusing on two issues, namely, SAIC and Ssangyong to honor the warrants.

Now, South Korean court has designated this PwC survey companies that entered bankruptcy protection Shuanglong procedures can really 'bankruptcy protection', the investigation reached three conclusions." Said Chen Hong, in the complete investigation, the conclusions of PwC for the Shanghai Automotive is positive.

First, the operation of the original management Shuanglong not make major mistakes, as the controlling shareholder Shanghai Automotive Shuanglong technology did not steal, nor deliberately ruined Ssangyong Motor, "had previously reported on a variety of adverse Shanghai Automotive freedom of speech, but the survey by PricewaterhouseCoopers of our innocence. "

Second, Ssangyong Motor is greater than the value of a going concern value of bankruptcy by the calculations, the entire assets of more than 9000 Shuanglong billion won (more than 700 million U.S. dollars).

Third, the realization of bankruptcy protection Shuanglong two adjustments must be experienced, first of all, the need for large-scale restructuring, that is, cutting staff, about 2,700 people to be laid off; followed by the need to continue financing needs in 2009 to 200 million U.S. dollars to maintain operations.

"In fact, the plight of Shuanglong we see a long time ago, in October last year, we started with the South Korean government, trade unions, bank holding talks, but the parties are unwilling to make concessions."

May 22, South Korea held its first court session of the relationship between people, announced the findings of PwC will be held in September at the second meeting of the relationship. At the same time, the court let the current management team must be picked up more comprehensive plans.

According to Chen Hong, currently about 1,000 South Korean workers to accept voluntary retirement, while others choose to protest against the workers. "Ssangyong is still in bankruptcy protection proceedings, but the more difficult it should be said. Because of staff problems are not resolved, banks will not in fact agreed to provide loans Shuanglong."

Reported in fiscal 2008, for Shuanglong may face bankruptcy, the Shanghai Automotive has been a provision in advance, by total assets reached 30 billion, therefore, Chen said that in 2009 the problem will not Shuanglong Shanghai Automotive gross margin impact.

Shanghai Gu-feng, director of auto finance for Shuanglong problem, from a financial point of further explained the situation faced by Shanghai Automotive, or worst-case profit in 2009 will continue to provision of 600 million yuan.

Gu Feng said that the Shanghai Automotive from the perspective of prudence suggests that last year's Shanghai auto Shuanglong assets for a total of 3.6 billion investment. Remove the provision of 30 billion yuan, and 6 million book loss, Shanghai Automotive will be procedures for bankruptcy protection Ssangyong implementation of provision of 6 billion on preparations.

At the same time, Shuanglong bankruptcy protection if successful, Ssangyong stake or through the sale of secondary market transactions as the price of investment losses over the remainder of the book (about 6 billion), while profit will go back to profit in 2009 up the book.

After the general meeting of shareholders, Gu Yong-feng on the issue of reporters accepted an exclusive interview with CBN, he said that the original will be settled in the Shuanglong S100 Jiangsu Yizheng item (SUV project) will not be affected. "If so, does the supply system should be, because a lot of parts suppliers in Korea, they filed for bankruptcy protection in Shuanglong, too, have filed for bankruptcy protection, the whole supply system for the S100 to change."

As a result of Shuanglong proceedings are still under bankruptcy protection, according to Shanghai Automotive originally signed an agreement with Ssangyong, Shanghai Automotive will SKD (Semi-parts)) directly to the Shuanglong procurement, and is directly responsible for Shuanglong domestic parts and components to buy , Shanghai Automotive can not be crossed Shuanglong, this situation led to a yizheng projects, at least to delay the implementation of Shuanglong bankruptcy protection after the procedure.

"No matter the Roewe 950 (C-class sedan project) or the S100 project, signed with the Shuanglong commercial contracts, and paid a transfer fee, while also granting royalty vehicle, we call it 'entry fee' and ' divided into costs'. "Gu-feng said that the original commercial contracts are confidential, but after entering bankruptcy protection, the courts and PricewaterhouseCoopers to carry out the contract on the investigation and evidence collection. "The so-called theft of Shuanglong technology, are nonsense."