Tianrun Industry Technology Co.Ltd(002283) it was announced on January 10 that the company signed the strategic cooperation framework agreement with Wandu China Holdings Co., Ltd. (hereinafter referred to as “Wandu”) in Weihai City, Shandong Province. Both parties intend to conduct in-depth discussion on the potential business cooperation opportunities of automotive chassis system products.
It is reported that Wandu China Holdings Co., Ltd. is mainly engaged in the research, development, production and sales of automobile chassis parts (braking system, steering system, suspension system, ADAS and other product lines) and their raw materials and electronic products, and can provide consulting and technical services. Customers mainly include Hyundai Kia automobile group and general motors, Geely Automobile, Chongqing Changan Automobile Company Limited(000625) , FAW Hongqi, Tesla, velai automobile, etc.
According to the agreement, both parties intend to conduct in-depth discussion on the potential business cooperation opportunities of automobile chassis system products. In the future, both parties will further discuss the possibility of establishing a joint venture for new business. The joint venture shall be registered in China, and the specific registration place shall be located in the best place to meet the business requirements of the joint venture after investigation and research by both parties. At the initial stage, the joint venture takes Chinese commercial vehicle customers as the main customers. According to the future development plan and the consensus of both parties, the joint venture can explore the global market (the United States, Europe, India, etc.). Both parties will set up a joint team to investigate the possibility of commercial cooperation for the target product bn-eps (electronic steering gear) confirmed by both parties and form relevant reports. If both parties judge that there are commercial cooperation opportunities in the future, they will sign the letter of intent for joint venture with the approval of the management of both parties to confirm the long-term cooperation contents of both parties.
The company said that the signing of the agreement will establish a strategic cooperative relationship between the two sides, complement each other’s advantages, realize industrial interaction and mutual benefit and win-win, and comply with the company’s overall development strategic plan. The agreement does not involve specific amount and content, and is not expected to have a significant impact on the company’s performance in this year. The impact on the operating performance in future years shall be determined according to the promotion and implementation of specific projects.
(source: China Securities Journal · China Securities Network)
