Gelonghui, May 8, 丨 Zhongda Group Holdings (00139.HK) announced that on May 8, 2024, the company signed a conditional joint venture agreement with FMC Cayman to establish a joint venture to develop the smart and new energy vehicle market, including the production, design, R&D and sales of smart cars and related after-sales services. After subscribing for shares in the joint venture, the joint venture's issued share capital will be HK$50 million, of which 90% will be owned by the Group and 10% will be owned by FMC Cayman.

According to reports, FMC Cayman is a limited company incorporated in the Cayman Islands. As far as the company knows, FMCCayman and its affiliates hold the brand name BYTON and related intellectual property rights. It is an all-electric vehicle brand co-founded by a former executive in the brand's automobile industry in 2017. FMC Cayman and its subsidiaries are mainly engaged in the development and production of new energy vehicles, and hold relevant BYTON trademarks and intellectual property rights (including related expertise and technology). The FMC Group has produced a prototype concept car.

The directors have been actively seeking opportunities to expand the scope of the Group's business. As environmental awareness increases, the company believes that NEVs have broad prospects. The proposed strategic cooperation and joint venture agreement under the MOU will enable the Group to participate in the NEV business. Furthermore, the Group can use the expertise and experience of FMC Cayman (as a joint venture partner) to enable the Group to enter this market competitively.

Furthermore, on May 8, 2024, the company signed a memorandum of understanding on strategic cooperation and investment with FMC Cayman. The contracting parties are expected to establish a joint venture. After the establishment of the joint venture, the Group will assist the joint venture to further raise RMB 250 million as working capital for the development of its business.