In a press release, the Group outlined its longstanding partnership with Automobile Group (U) Limited, a company established in December 2019 following a cooperation agreement between Mr. Liu Qingshan, Mr. Yan Sheng, and Mr. Zhang Zhigang. Under the agreement, the trio aimed to carry out automobile assembly in Uganda.
Below is the press statement in full:
KAMPALA—Tian Tang Group is a leading industrial hub within the Republic of Uganda. The Group is established under the auspices of the China – Uganda Cooperation. Over time, the group has attracted significant investment in Uganda creating thousands of Jobs and contributing to development.
Our attention has been drawn to malicious, defamatory, propagandist and misleading media reports currently circulating about our relationship with Automobile Group (U) Limited.
Automobile Group (U) Limited was established following the cooperation agreement between Mr Liu Qingshan, Mr Yan Sheng and Zhang Zhigang in December 2019.
In the terms of the agreement, it was agreed as follows:
1.The parties incorporate a company to among others carry out the business of assembly of automobiles.
2.The shareholding for Automobile Group (U) Co. Ltd to be as follows: Liu Quingshan Yan Sheng and Zhang Zhigang
Tian Tang Group authorized the investment and allowed its chairman to invest in the Company.
Consequently, 10 acres of the land in the Sino-Uganda Mbale Industrial Park were allocated to the Company. The Company also received a 640-square-meter exhibition hall, a 2,700-square-meter workshop and an apartment in the Namanve Industrial Park rent-free for three years.
The allegation that our Chairman only contributed land as equity in the joint venture is false and unfounded.
In further terms of the cooperation agreement, all shareholders were prohibited from undertaking business which conflicted with that of the company.
In April 2023, Mr Liu went on and registered another company Watu Auto Works (U) Ltd engaging in the same business with Automobile Group (U) Co. Ltd. In October 2023, Mr Liu still without the consent from fellow shareholders, registered another competing company NEC-WATU AUTOMOBILE (U) Ltd, with 80 percent shares and NEC with 20 percent shares.
The above companies started using our premises availed (per the cooperation agreement) for their operations to the exclusion of the rest of the partners. Mr. Liu deliberately excluded all partners from participating in the business and refused to render any accountability for the investment.
This conduct clearly violated the agreement between the partners and occasioned considerable loss.
