Geely ready for Volvo operational reserve of $ 900 000 000

As mysterious financing channels, in the process of acquisition of Volvo, Geely Automobile cash flow also attracted much attention. Although the the Ji Lixuan called Volvo's operational readiness of $ 900 million of funding, but the Volvo for many years to put more pressure loss as cash reserves and working capital of Geely Automobile.According to Gasgoo Volvo and Ford 2007 to 2009, financial data from 2007 to 2009, Volvo Car for three consecutive years of losses, only the 2007 fourth quarter to achieve profitability. The fourth quarter of 2008, Volvo losses for the quarter was as high as $ 736 million in 2008, Volvo pre-tax loss of $ 653 million.Volvo global sales of rapid decline, leading to their own business at a loss. Before the resumption of sales, Geely car must bear the Volvo's operating losses that may occur in the next few years. This auto industry analyst forecasts, Geely must invest billions of dollars to resurrection of the Volvo brand.Loss compared with the Volvo, Geely Automobile operating reserve is not very full. Information disclosed in a news conference in Beijing, according to Geely Automobile, Geely Automobile operating reserve of 900 million U.S. dollars for Volvo, Volvo are still holding $ 450 million in cash.In addition, Geely Automobile recent report shows that, compared to the huge profits and consumption of Volvo Car as "trivial". Geely Automobile Holdings Ltd (hereinafter referred to as the "Geely") 2008 report shows that the year attributable to shareholders of listed companies net profit of 879 million yuan, an increase of 191%. Year, Geely Automobile's total cash and cash equivalents bank balances and cash of 8.894 billion yuan, or about $ 1.3 billion.Mid-2009, Geely Automobile cash flow reached 18.796 billion yuan, but the report also shows, Geely Automobile's total liabilities also exponentially increases. 2007, Geely total liabilities of only 370 million yuan. In 2008, this figure becomes 5.36 billion yuan. In mid-2009 this figure becomes 6.65 billion yuan., Who declined to be named, analysts say, unlucky in recent years, expansion of the various assets into the listed company to do a low debt ratio, and then go to loans accordingly. Thus despite the Geely Automobile in recent years, debt ratio quickly decreased, but its total liabilities are rising fast.
Geely is China growing sample
Postscript flag-raising ceremony in Tiananmen Square Beijing