May 17, 2019 / 10:03 AM / 6 months ago

Cash-strapped Chinese automaker Haima sells properties to raise funds

BEIJING, May 17 (Reuters) - China’s Haima Automotive Group Co Ltd said the company planned to sell over 400 units of real estate to revitalise its corporate assets and boost liquidity, stock exchange filings showed.

The unusual property sell-off is another sign of struggles faced by small- and mid-sized automobile manufacturers as car sales dropped in the world’s largest auto market.

The net total value of the assets, ranging from flats in Shanghai to shops in Haikou, will be 28.27 million yuan ($4.09 million), the Hainan Island-based carmaker said in two recent stock exchange filings.

Haima reported a 72% plunge in sales in the first four months of this year, following a 48% dive in 2018 revenue.

While overall auto sales are declining, Toyota Motor Corp reported an about 20% jump in growth last month with the help of revamped models of its Toyota and Lexus models.

Conversely, SAIC Motor Corp Ltd, a Chinese partner of Volkswagen AG and General Motors Co , said its group sales dropped 16.8% last month.

$1 = 6.9121 Chinese yuan Reporting by Yilei Sun, Brenda Goh and John Ruwitch, Editing by Sherry Jacob-Phillips

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