There are also consumer electronics leaders to enter the new energy vehicle track.
On the evening of February 11, Luxshare Precision Industry Co.Ltd(002475) (002475) announced that with Chery Holding Group Co., Ltd. (hereinafter referred to as “Chery holding”), Chery Automobile Co., Ltd. (hereinafter referred to as “Chery shares”) Chery New Energy Automobile Co., Ltd. (hereinafter referred to as “Chery new energy”) (“Chery holding”, “Chery shares”, “Chery new energy” and its affiliates collectively referred to as “Chery group”) jointly signed the strategic cooperation framework agreement in Wuhu, laying a strategic partnership between the two sides.
At the same time, Luxshare Precision Industry Co.Ltd(002475) controlling shareholder Lixun Co., Ltd. plans to purchase 19.88% equity of Chery holdings, 7.87% equity of Chery shares and 6.24% equity of Chery new energy held by Qingdao Wudaokou for RMB 10.054 billion.
The combination of consumer electronics giants and automobile leaders and the transaction amount of 10 billion is undoubtedly a heavy bomb to the capital market.
establish a joint venture
According to the announcement, Luxshare Precision Industry Co.Ltd(002475) and Chery new energy plan to jointly establish a joint venture company, specializing in the R & D and manufacturing of new energy vehicles, providing cutting-edge R & D, design, mass production platform and access to the sea for Luxshare Precision Industry Co.Ltd(002475) auto core parts business, and committed to realizing the company’s medium and long-term goal of becoming a leading manufacturer of auto parts tier 1 (primary supplier of the depot).
Both parties agree that they will do their best to promote the establishment of the cooperative subsidiary within 3 months after the signing of this agreement.
The cooperative subsidiary plans to adopt the equity structure of: Luxshare Precision Industry Co.Ltd(002475) subscribed 500 million yuan, held 30% of the registered capital, Chery new energy subscribed 1.167 billion yuan and held 70% of the registered capital, and the subscription price of each 1 yuan of registered capital is 1 yuan. After the establishment of the cooperative subsidiary, on the premise of meeting the legal compliance, carry out the cooperative business and achieve results as soon as possible. According to the needs of customers and business development, Chery group can cooperate directly or establish another subsidiary for cooperation.
On the date of signing the agreement, Lixun Co., Ltd. signed the equity transfer framework agreement with Qingdao Wudaokou new energy automobile industry fund enterprise (limited partnership) (hereinafter referred to as “Qingdao Wudaokou”). The agreement agreed that Lixun Co., Ltd. would purchase 19.88% equity of Chery holdings, 7.87% equity of Chery shares and 6.24% equity of Chery new energy held by Qingdao Wudaokou with RMB 10.054 billion.
After the completion of the transaction, Lixun Co., Ltd. does not control Chery holdings, Chery shares and Chery new energy. Before the signing of the equity transfer framework agreement, Qingdao Wudaokou held 46.77% equity of Chery holdings and was the largest shareholder of Chery holdings.
This also means that the relationship between instant messaging and Chery is closer.
vigorously layout new energy vehicles
The 21st Century Business Herald has previously reported many times that a number of consumer electronics enterprises are turning to the new energy vehicle track to seek the second growth point.
And Luxshare Precision Industry Co.Ltd(002475) set foot in the field of automotive electronics as early as 2012. The company said that after more than ten years of layout in the automotive business segment, it has the ability to provide customers with automotive power solutions such as high voltage and high current, as well as related automotive harness, electronic module and other products and services.
However, at present, Luxshare Precision Industry Co.Ltd(002475) automobile business makes little contribution. In the first half of 2021, the company’s automobile interconnection products and precision components achieved a revenue of 1.774 billion yuan, accounting for 3.68%, while its consumer electronics revenue was 40.4 billion yuan.
After cooperating with Chery, the business layout of Lixun in the automotive field is expected to expand rapidly.
The announcement said that Chery holdings and its affiliated subsidiaries have been deeply cultivated in the automotive industry for many years, and have a complete technology and product R & D system in the field of complete vehicles. In particular, they have an independent platform in the manufacturing of complete vehicles, which can provide Chery and other brands with comprehensive services from complete vehicle development to mass production, and have a strong and leading core competitive advantage in the industry.
The company signed a strategic cooperation framework agreement with Chery holdings and its related parties, aiming to comprehensively strengthen the strategic layout of the company’s automobile business, make full use of Chery group’s deep technological precipitation and terminal brand resources in the field of new energy vehicles, establish a joint venture, and cross-border empower the technology and customer resources accumulated by the company in the field of consumer electronics over the years, With the strong support of the vehicle joint venture platform as the cutting-edge R & D and design, mass production platform and sea port, the company dynamically enters the market, quickly improves the comprehensive ability of the company’s core parts as a tier 1 manufacturer, quickly polishes, optimizes and quantities in practice, realizes the diversified and large-scale development of the company’s core parts, and achieves the medium and long-term goal of becoming a leading manufacturer of tier 1.
The 21st Century Business Herald reporter noted that although the proportion of Luxshare Precision Industry Co.Ltd(002475) automobile business in 2021 was small, it increased rapidly.
in the first half of last year, the operating revenue of the company’s automotive interconnection products and precision components increased by 38.99% year-on-year, second only to the growth rate of computer interconnection products. moreover, when the gross profit margin of other products decreased by varying degrees, the gross profit of automotive interconnection products increased slightly by 0.24%.
As of the closing on February 10, Luxshare Precision Industry Co.Ltd(002475) reported 41.05 yuan, with a total market value of 290.3 billion yuan.
