Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<p>Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.</p><ul><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-26799'>Future Retail</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Car IncFuture RetailJingrui Holdings

Morning Views Asia: Car Inc, Future Retail, Jingrui Holdings

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/car-inc" target="_blank" data-smartkarma-citation="entities:942:1" rel="noopener">Car Inc (699 HK)</a> provides car rental services, including car rentals and fleet rentals in China. Late on Friday night, CAR announced a pre-conditional voluntary cash offer from Indigo Glamour, which is wholly-owned by MBK Partners. Indigo Glamour will offer HK$4.00 in cash per share which is a 17.99% premium to the last close price of HK$3.39 per share. The offer is not entirely unexpected as on 20 August, a Reuters article claimed that a consortium led by MBK Partners is seeking to privatise CAR.</p><div class="content-highlight"><p>The pre-conditions which can be waived by the offeror are PRC antitrust approval and necessary consents/waivers from lenders. The key condition precedent is that offeror receives enough acceptances to hold more than 50% of the voting interest. Post-completion of the UCAR share sale and including the irrevocable from <a href="https://www.smartkarma.com/entities/legend-holdings-corp-h" target="_blank" data-smartkarma-citation="entities:517:1" rel="noopener">Legend Holdings Corp H (3396 HK)</a>, the offeror will own 47.41% of the outstanding shares. In combination with a reasonable offer price, we think that offer will garner enough acceptances to comfortably cross the 50% voting interest threshold to become unconditional. </p></div>

Car Inc (699 HK) provides car rental services, including car rentals and fleet rentals in China. Late on Friday night, CAR announced a pre-conditional voluntary cash offer from Indigo Glamour, which is wholly-owned by MBK Partners. Indigo Glamour will offer HK$4.00 in cash per share which is a 17.99% premium to the last close price of HK$3.39 per share. The offer is not entirely unexpected as on 20 August, a Reuters article claimed that a consortium led by MBK Partners is seeking to privatise CAR.The pre-conditions which can be waived by the offeror are PRC antitrust approval and necessary consents/waivers from lenders. The key condition precedent is that offeror receives enough acceptances to hold more than 50% of the voting interest. Post-completion of the UCAR share sale and including the irrevocable from Legend Holdings Corp H (3396 HK), the offeror will own 47.41% of the outstanding shares. In combination with a reasonable offer price, we think that offer will garner enough acceptances to comfortably cross the 50% voting interest threshold to become unconditional. 

CAR Inc’s Conditional VGO from MBK Partners

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<div>
<p><a href="https://www.smartkarma.com/entities/car-inc" target="_blank" data-smartkarma-citation="entities:942:1" rel="noopener">Car Inc (699 HK)</a>'s cratered 54% on the 3 April before being suspended, given the management crossover with scandal-hit <a href="https://www.smartkarma.com/entities/luckin-coffee-inc" target="_blank" data-smartkarma-citation="entities:28046:1" rel="noopener">Luckin Coffee (LK US)</a>. Charles Zhengyao Lu, the largest shareholder in Luckin, was also a major (indirect) shareholder and chairman in Car.</p>
<p>Car <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0407/2020040700005.pdf" target="_blank" rel="noopener">qualified</a> that while Lu was a shareholder and chairman of Luckin Coffee, "<em>he resigned from the role of Chief Executive Officer and became a Non-executive Director of Car in April 2016</em>" and "<em>has not been involved in the Group’s day-to-day management since then</em>". In addition, Jian Liu, COO of Luckin and widely understood to be the orchestrator of Luckin's internal issues, "<em>ceased his employment as a department director" with Car in 2015.</em>" </p>
</div>
<div>
<p>A detailed rundown of these events can be found in <em><a href="https://skr.ma/p7ikw" target="_blank" rel="noopener">Car Inc (699 HK) - Needs A Hire Purpose</a></em>.</p>
<p>According to a <a href="https://www.reuters.com/article/us-car-inc-mbk-partners-m-a-exclusive/exclusive-mbk-partners-leads-group-in-talks-to-take-hk-listed-car-inc-private-idUSKCN25G0JX" target="_blank" rel="noopener">Reuters</a>' article on the 20 August, an MBK consortium had been in negotiations with SOE Jinggangshan BAIC with respect to its ~29% stake in Car, with a possible view to taking Car private. This was discussed in <em><a href="https://skr.ma/WyCdw" target="_blank" rel="noopener">Car Inc (699 HK): MBK Takes A Turn At The Wheel</a></em>. A HKEx disclosure filing on the 24 July showed BAIC with <a href="https://di.hkex.com.hk/di/NSForm2.aspx?fn=CS20200727E00205&amp;sa2=np&amp;scpid1=99615&amp;scpid3=0&amp;scpid2=109421&amp;sa1=pl&amp;scsd=21%2f08%2f2017&amp;sced=21%2f08%2f2020&amp;pn=Beijing+Automotive+Group&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">28.92%</a>, given the SPAs with UCAR &amp; Warburg Pincus/Amber.</p>
<p>On the 10 November, Car <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1110/2020111001297.pdf" target="_blank" rel="noopener">announced</a> the SPA between UCAR and BAIC had terminated. Separately, MBK Partners had entered into a SPA to acquire ~20.86% of shares in Car for HK$1.77bn ($4.00/share) from UCAR.</p>
</div>
<div>
<p>A summary of announcements below brings you up to date.:</p>
</div>
<div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 115.258px;">
<h3>Date</h3>
</td>
<td style="width: 588.274px;">
<h3>Data in the Date</h3>
</td>
</tr>
<tr>
<td style="width: 115.258px;">9-Apr-20</td>
<td style="width: 588.274px;">Car's largest shareholder, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0409/2020040900021.pdf" target="_blank" rel="noopener">sold</a> 44.666mn shares, or 2.11% of shares out, on the day Car's shares collapsed. NOT a good look. UCAR held ~27.65% of shares out in Car after the sale. Lu is the controller of UCAR with a 39.94% stake.<br><br>UCAR <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0512/2020051201219.pdf" target="_blank" rel="noopener">sold</a> a further 100k shares (0.0047% of shares out) on the 11 May, and <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0623/2020062301508.pdf" target="_blank" rel="noopener">7.085mn</a> shares (0.33%) between the 12 May and 22 June.</td>
</tr>
<tr>
<td style="width: 115.258px;">16-Apr-20</td>
<td style="width: 588.274px;">
<p>Amber Gem <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0416/2020041601733.pdf" target="_blank" rel="noopener">entered</a> into a SPA with UCAR to acquire 98.6mn shares (4.65% of shares out - known as the first tranche) from UCAR at HK$2.30/share; and 264.08mn shares (12.46% of shares out - the second tranche) at HK$3.40/share. This works out to an average price of $3.10/share.</p>
<p></p>
<p>At the time of the SPA, Amber Gem held 10.11%. According to the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0401/2020040101309.pdf" target="_blank" rel="noopener">2019 annual report</a> (page 49), Warburg Pincus holds a 60.47% stake in Amber Gem. </p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">1-Jun-20</td>
<td style="width: 588.274px;">
<p>Car <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0601/2020060100013.pdf" target="_blank" rel="noopener">announced</a> Amber Gem and UCAR had terminated their second tranche. The first tranche <a href="https://di.hkex.com.hk/di/NSNoticePersonList.aspx?sa2=np&amp;scpid1=69816&amp;scpid3=0&amp;scpid2=109421&amp;sa1=pl&amp;scsd=21%2f07%2f2019&amp;sced=21%2f07%2f2020&amp;pn=Amber+Gem&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">appears</a> to have been completed on the 30 May, lifting Amber Gem's stake to 14.76%.</p>
<p></p>
<p>Separately  UCAR and BAIC Group <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0601/2020060100013.pdf" target="_blank" rel="noopener">entered</a> into a non-legally binding strategic cooperation agreement, such that BAIC would acquire 450.79mn shares in Car, or 21.26% of shares out, from UCAR.</p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">9-Jun-20</td>
<td style="width: 588.274px;">Lu <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0610/2020061000043.pdf" target="_blank" rel="noopener">resigned</a> as Chairman and NED, with effect from June 9 (i.e. immediate).</td>
</tr>
<tr>
<td style="width: 115.258px;">2-Jul-20</td>
<td style="width: 588.274px;">
<p>Car announced UCAR had entered into an offer letter with <a href="https://www.smartkarma.com/entities/saic-motor-corp-ltd-a" target="_blank" data-smartkarma-citation="entities:20833:1" rel="noopener">SAIC Motor (600104 CH)</a> such that SAIC will acquire UCAR's 20.87% stake in Car at HK$3.10.</p>
<p></p>
<p>Separately, SAIC entered into an offer letter with Amber Gem to acquire an 8.05% stake in Car, also at HK$3.10/share.  The completion of these Offer letters would result in SAIC holding 28.92%, below the 30% mandatory general offer threshold.</p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">20-Jul-20</td>
<td style="width: 588.274px;">
<p>Car announced that UCAR has terminated its agreement with SAIC; and that UCAR had now entered into a SPA with Jinggangshan BAIC to acquire its 20.87% stake in Car at HK$3.10/share. Jinggangshan BAIC also signed an offer letter with Amber Gem to acquire an 8.04% of shares out (@ HK$3.10/share) - to collectively give Jinggangshan BAIC 28.91%. Amber Gem would be left holding 6.7% of shares out. </p>
<p></p>
<p>Car <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0720/2020072001067.pdf" target="_blank" rel="noopener">announced</a> that it has been informed that "UCAR has received a notice from the China Securities Regulatory Commission (and that the) CSRC has initiated an investigation on UCAR in connection with suspected violations of information disclosure laws and regulations by UCAR". </p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">24-Jul-20</td>
<td style="width: 588.274px;">
<p>Profit warning. Car expects a net loss n the 1H20 vs. net profit of RMB279mn in 1H19. Looking at impairment charges with respect to is vehicle fleet of RMB2.5bn-3RMBbn. </p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">26-Jul-20</td>
<td style="width: 588.274px;">
<p>Amber Gem and Jinggangshan BAIC <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0726/2020072600011.pdf" target="_blank" rel="noopener">entered</a> into a SPA such that BAIC acquires 170.72mn shares (8.05% of shares out) from Amber at $3.10/share.</p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">3-Aug-20</td>
<td style="width: 588.274px;">
<p>Xiaogeng Li, an NED, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0803/2020080300015.pdf" target="_blank" rel="noopener">resigned</a>, ceasing her membership of the audit and compliance committee</p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">3-Aug-20</td>
<td style="width: 588.274px;">
<p>The CSRC <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0803/2020080300019.pdf" target="_blank" rel="noopener">completed</a> its (two-week) investigation and dished out some fines to UCAR and certain directors/senior management. </p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">20-Aug-20</td>
<td style="width: 588.274px;">
<p>A Reuters article suggests MBK is kicking tyres</p>
</td>
</tr>
<tr>
<td style="width: 115.258px;">10-Nov-20</td>
<td style="width: 588.274px;">
<p><a href="https://www.smartkarma.com/entities/car-inc" target="_blank" data-smartkarma-citation="entities:942:1" rel="noopener">Car Inc (699 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1110/2020111001297.pdf" target="_blank" rel="noopener">announced</a> the S&amp;P with UCAR, BAIC is terminated. MBK Partners to acquire ~20.86% of shares in Car for HK$1.77bn ($4/share).</p>
</td>
</tr>
</tbody>
</table>
</div>
</div>
<div>
<div class="content-caption">
<p style="text-align: left;">Source: HKEx filings</p>
</div>
</div>
<div>
<h3>The NEW News</h3>
</div>
<div>
<p>MBK has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1113/2020111301538.pdf" target="_blank" rel="noopener">tabled</a> a pre-conditional general cash Offer of $4.00/share, a 17.99% premium to last close. There are no outstanding dividends and no dividends are expected to be declared or paid during the Offer.</p>
<p>Pre-conditions include anti-trust approval, no default on any bonds or debt; and the Offer not triggering a "change of control" in the bond/debt instruments. Interestingly, all pre-conditions can be waived by MBK. </p>
<p>The Offer is conditional on MBK holding 50% of the voting rights in Car. Irrevocables (namely Legend Holdings) holding 26.55% have agreed to tender into the Offer. Together with the 20.86% from the SPA with UCAR, MBK will hold a minimum of 47.41% of shares out. Clearing the 50% looks like a lock.</p>
<p>MBK intends to maintain Car's listing.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Car Inc (699 HK)'s cratered 54% on the 3 April before being suspended, given the management crossover with scandal-hit Luckin Coffee (LK US). Charles Zhengyao Lu, the largest shareholder in Luckin, was also a major (indirect) shareholder and chairman in Car.
Car qualified that while Lu was a shareholder and chairman of Luckin Coffee, "he resigned from the role of Chief Executive Officer and became a Non-executive Director of Car in April 2016" and "has not been involved in the Group’s day-to-day management since then". In addition, Jian Liu, COO of Luckin and widely understood to be the orchestrator of Luckin's internal issues, "ceased his employment as a department director" with Car in 2015." 


A detailed rundown of these events can be found in Car Inc (699 HK) - Needs A Hire Purpose.
According to a Reuters' article on the 20 August, an MBK consortium had been in negotiations with SOE Jinggangshan BAIC with respect to its ~29% stake in Car, with a possible view to taking Car private. This was discussed in Car Inc (699 HK): MBK Takes A Turn At The Wheel. A HKEx disclosure filing on the 24 July showed BAIC with 28.92%, given the SPAs with UCAR &amp; Warburg Pincus/Amber.
On the 10 November, Car announced the SPA between UCAR and BAIC had terminated. Separately, MBK Partners had entered into a SPA to acquire ~20.86% of shares in Car for HK$1.77bn ($4.00/share) from UCAR.


A summary of announcements below brings you up to date.:







Date


Data in the Date



9-Apr-20
Car's largest shareholder, sold 44.666mn shares, or 2.11% of shares out, on the day Car's shares collapsed. NOT a good look. UCAR held ~27.65% of shares out in Car after the sale. Lu is the controller of UCAR with a 39.94% stake.  UCAR sold a further 100k shares (0.0047% of shares out) on the 11 May, and 7.085mn shares (0.33%) between the 12 May and 22 June.


16-Apr-20

Amber Gem entered into a SPA with UCAR to acquire 98.6mn shares (4.65% of shares out - known as the first tranche) from UCAR at HK$2.30/share; and 264.08mn shares (12.46% of shares out - the second tranche) at HK$3.40/share. This works out to an average price of $3.10/share.

At the time of the SPA, Amber Gem held 10.11%. According to the 2019 annual report (page 49), Warburg Pincus holds a 60.47% stake in Amber Gem. 



1-Jun-20

Car announced Amber Gem and UCAR had terminated their second tranche. The first tranche appears to have been completed on the 30 May, lifting Amber Gem's stake to 14.76%.

Separately  UCAR and BAIC Group entered into a non-legally binding strategic cooperation agreement, such that BAIC would acquire 450.79mn shares in Car, or 21.26% of shares out, from UCAR.



9-Jun-20
Lu resigned as Chairman and NED, with effect from June 9 (i.e. immediate).


2-Jul-20

Car announced UCAR had entered into an offer letter with SAIC Motor (600104 CH) such that SAIC will acquire UCAR's 20.87% stake in Car at HK$3.10.

Separately, SAIC entered into an offer letter with Amber Gem to acquire an 8.05% stake in Car, also at HK$3.10/share.  The completion of these Offer letters would result in SAIC holding 28.92%, below the 30% mandatory general offer threshold.



20-Jul-20

Car announced that UCAR has terminated its agreement with SAIC; and that UCAR had now entered into a SPA with Jinggangshan BAIC to acquire its 20.87% stake in Car at HK$3.10/share. Jinggangshan BAIC also signed an offer letter with Amber Gem to acquire an 8.04% of shares out (@ HK$3.10/share) - to collectively give Jinggangshan BAIC 28.91%. Amber Gem would be left holding 6.7% of shares out. 

Car announced that it has been informed that "UCAR has received a notice from the China Securities Regulatory Commission (and that the) CSRC has initiated an investigation on UCAR in connection with suspected violations of information disclosure laws and regulations by UCAR". 



24-Jul-20

Profit warning. Car expects a net loss n the 1H20 vs. net profit of RMB279mn in 1H19. Looking at impairment charges with respect to is vehicle fleet of RMB2.5bn-3RMBbn. 



26-Jul-20

Amber Gem and Jinggangshan BAIC entered into a SPA such that BAIC acquires 170.72mn shares (8.05% of shares out) from Amber at $3.10/share.



3-Aug-20

Xiaogeng Li, an NED, resigned, ceasing her membership of the audit and compliance committee



3-Aug-20

The CSRC completed its (two-week) investigation and dished out some fines to UCAR and certain directors/senior management. 



20-Aug-20

A Reuters article suggests MBK is kicking tyres



10-Nov-20

Car Inc (699 HK) announced the S&amp;P with UCAR, BAIC is terminated. MBK Partners to acquire ~20.86% of shares in Car for HK$1.77bn ($4/share).








Source: HKEx filings



The NEW News


MBK has now tabled a pre-conditional general cash Offer of $4.00/share, a 17.99% premium to last close. There are no outstanding dividends and no dividends are expected to be declared or paid during the Offer.
Pre-conditions include anti-trust approval, no default on any bonds or debt; and the Offer not triggering a "change of control" in the bond/debt instruments. Interestingly, all pre-conditions can be waived by MBK. 
The Offer is conditional on MBK holding 50% of the voting rights in Car. Irrevocables (namely Legend Holdings) holding 26.55% have agreed to tender into the Offer. Together with the 20.86% from the SPA with UCAR, MBK will hold a minimum of 47.41% of shares out. Clearing the 50% looks like a lock.
MBK intends to maintain Car's listing.


More below the fold.


<p>Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.</p><ul><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-8898'>Sino Ocean Land</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Car IncSino Ocean Land

Morning Views Asia: Car Inc, Sino Ocean Land

Partner

Patrick Eng

Sparkill & Co

Equity Bottom-Up

<ol>
<li>Who Is Borgward?</li>
<li>How Did CAR Turn A Liability Into An Asset?</li>
<li>What Is The Market Missing?</li>
</ol>
<p style="text-align: justify;">This is chapter 5 in our investment in CAR Inc. (“CAR”).  If you are not familiar with CAR and the controversy, please refer to the first four chapters or insights.</p>
<p style="text-align: justify;">Chapter I: <a href="https://www.smartkarma.com/insights/misunderstood-future-elephant-developing-in-china-s-car-rental-industry" target="_blank" data-smartkarma-citation="insights:40503" rel="noopener">CAR Inc: Misunderstood Future Elephant Developing in China’s Car Rental Industry</a> </p>
<p style="text-align: justify;">Chapter II: <a href="https://www.smartkarma.com/insights/how-the-car-rental-elephant-may-potentially-evolve-part-2" target="_blank" data-smartkarma-citation="insights:41296" rel="noopener">How The CAR Rental Elephant May Potentially Evolve? Part 2</a> </p>
<p style="text-align: justify;">Chapter III: <a href="https://www.smartkarma.com/insights/car-inc-given-secular-changes-some-see-the-value-of-lu-s-auto-mobility-ecosystem" target="_blank" data-smartkarma-citation="insights:42499" rel="noopener">CAR Inc - Given Secular Changes, Some See The Value of Lu’s Auto, Mobility Ecosystem.</a> </p>
<p style="text-align: justify;">Chapter IV: <a href="https://www.smartkarma.com/insights/car-inc-will-165-million-chinese-tourist-s-stay-under-the-mattress" target="_blank" data-smartkarma-citation="insights:43655" rel="noopener">CAR Inc – Will 165 Million Chinese Tourist's $$$ Stay Under The Mattress?</a> </p>
<p style="text-align: justify;">To date and contrary to many investors, I believe in CAR’s future and long-term value creation. I shared our CAR thesis in June when the stock price was approximately HK$2.0. CAR’s share price today is ~HK$3.1. They are still standing given the pandemic, management, and board changes, shareholder changes, and fraud and accounting accusations.  </p>
<p style="text-align: justify;">CAR has plenty of “gas left in the tank”.</p>


Who Is Borgward?
How Did CAR Turn A Liability Into An Asset?
What Is The Market Missing?

This is chapter 5 in our investment in CAR Inc. (“CAR”).  If you are not familiar with CAR and the controversy, please refer to the first four chapters or insights.
Chapter I: CAR Inc: Misunderstood Future Elephant Developing in China’s Car Rental Industry 
Chapter II: How The CAR Rental Elephant May Potentially Evolve? Part 2 
Chapter III: CAR Inc - Given Secular Changes, Some See The Value of Lu’s Auto, Mobility Ecosystem. 
Chapter IV: CAR Inc – Will 165 Million Chinese Tourist's $$$ Stay Under The Mattress? 
To date and contrary to many investors, I believe in CAR’s future and long-term value creation. I shared our CAR thesis in June when the stock price was approximately HK$2.0. CAR’s share price today is ~HK$3.1. They are still standing given the pandemic, management, and board changes, shareholder changes, and fraud and accounting accusations.  
CAR has plenty of “gas left in the tank”.

CAR Inc. (0699 HK) – With All The Proven Auto OEMs, Why Borgward?

China

CAR Inc generates revenue primarily from car rental business and used car sales. The Company provides short-term and long-term rentals, and financial leasing services.  In addition, Car Inc offers other value-added services including accident coverage packages, GPS navigation systems, 24/7 roadside assistance, etc.

Price Gauge
52-week Range	0.00 - 0.00
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Car Inc (699 HK)

Morning Views Asia: Car Inc, Future Retail, Jingrui Holdings

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

CAR Inc’s Conditional VGO from MBK Partners

CAR announced a pre-conditional voluntary cash offer at HK$4.00 in cash per share. Overall, we think that offer will garner enough acceptances to...

Arun George

Car Inc (699 HK): MBK's Firm Offer

This transaction is all wrapped up. This may trade tight, if not through terms now that a clean slate is put in motion, and $4.00/share is below...

David Blennerhassett

Morning Views Asia: Car Inc, Sino Ocean Land

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

CAR Inc. (0699 HK) – With All The Proven Auto OEMs, Why Borgward?

CAR Inc, a car rental company wisely turning a liability into an asset with control and equity upside. Such control or access creates a barrier to...

Patrick Eng

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