This is to report that Zhang Fangyou, Chairman of Guangzhou Auto Industry Group and of HK Listed Company Denway Motors (HK listed 0203 ), is one of the most corrupted public company officers and also one of the most corrupted company managers ever in China auto industry. Since becoming the Chairman of Denway and of Guangzhou Auto Industry Group, he has engaged in
 insider trading,
 leveraging his power to offer economic favors (giving dealership licenses) to his immediate family members and small group of friends,
 Directly owning dealerships – which has conflict of interest with Denway’s businesses,
 Taking cash bribes by offering dealership licenses to others (by leveraging his power as the Chairman of Guangzhou Toyota and of Guangzhou Honda),and
 Failing to disclose as public officers (of his family interest in dealerships).
All of the above activities and ownerships are known to almost all in the auto industry in China. And the registration materials can be easily verified and obtained via local government business registration offices. Though many of these were probably changed to “shadow persons” by the Zhang family, historically records can be obtained.
Below are some of the evidences, obtained directly from the local government registration offices. Please look at the following facts carefully.
Name： Dongguan Hexin Auto Sales Limited
Biz License: 4419002345692
Form Date： 2006.1.7
Scope： Sales of Toyota
Owner Capital Ratio Actual Capital
Wang Ganquan （Adopted Son） 7.2m 60% 7.2
Chen Xiaona （Shadow Shareholder） 4.8m 40% 4.8

Name： Dongguan Nancheng Toyota Sales Limited
Biz License: 441900000106287
Form Date： 2007.7.19
Scope： Sales of Toyota
Owner Register Capital Ratio Actual Capital
Li Cuier（Zhang’s Wife） 6.0m 40% 6.0m
Wang Ganquan（Adopted Son） 3.0m 20% 3.0m

Name： Ruian Hongxu Auto Sales
Biz License：01355467509
Form Date： 2001.11.28
Scope： Honda Sales and Services
Owner Reg Capital Ratio Actual Capital
Zhang Yanzheng（Zhang’s Nephew） 3.04m 38% 3.04m

Name： Guangzhou Yijun Auto Sales
Biz License：4401252003001
Form Date： 2003.8.25
Scope： Sales and Services of Honda
Owner Reg Capital Ratio Actual Capital
Zhang Yanzheng (Zhang’s Nephew) 7.0m 70% 7.0m

Name： Hunan Kunbo Auto Sales
Biz License：430000000002228
Form Date： 2006.1.23
Scope： Sales and Services of Toyota
Owners Reg Capital Ratio Actual Capital Li Guohong (Zhang’s brother in law) 4.8m 40% 4.8m
Li Guoshuang (Zhang’s sister in law) 3.6m 30% 3.6m

Name： Wenzhou Hongfeng Auto Sales
Biz License：3303042007735
Form Date： 2006.1.18
Scope： Sales and Services of Toyota
Owner Reg Capital Ratio Actual Capital
Zhang Yanzheng (Zhang’s Nephew) 4.8m 40% 4.8m

Name： Changzhou Toyota Guanglian Auto Sales
Biz License：3204002103411
Form Date： 2005.11.9
Scope： Sales and Services of Toyota
Owner Reg Capital Ratio Actual Capital
Jiang Jingzhou (Zhang’s brother in law) 6.0m 50% 6.0m

Name： Changzhou Toyota Guanglian Sales and Services
Biz License：3204002103411
Form Date： 2005年11月9日
Scope： Sales and Services of Toyota
Owner Reg Capital Ratio Actual Capital
Jiang Jingzhou (Zhang’s brother in law) 6.0m 50% 6.0m