"This transaction will not affect the development of joint business between the two parties, and both parties will further deepen their cooperation." Chongqing Sokon Industry Group Stock stated in the announcement that, based on the consistency of product and brand market recognition, the assets related to this transaction symbol will be dedicated to joint business between the two parties. The financial report shows that in 2023, Chongqing Sokon Industry Group Stock achieved a revenue of 35.842 billion yuan, a year-on-year increase of 5.09%.
Chongqing Sokon Industry Group Stock announced on the evening of July 2 that its wholly-owned subsidiary, Chongqing Sokon Automobile Co., Ltd., plans to acquire 919 registered or pending word and graphic trademarks in the Ask Realm series held by Huawei Technology Co., Ltd. and its affiliates, as well as 44 related appearance design patents, for a total purchase price of 2.5 billion yuan.
"This transaction does not affect the joint business development between the two parties, and the relevant target assets of this transaction will be dedicated to the joint business of the two parties based on the consistency of product and brand market recognition," Chongqing Sokon Industry Group Stock said in the announcement.
Huawei responded to the transfer of the AITO Ask Realm trademark and other related intellectual property rights by stating that Huawei will transfer the Ask Realm series trademarks to Chongqing Sokon Industry Group Stock, and at the same time, Huawei will continue to help Sokon build and sell Ask Realm cars with its leading smart networked car technology. Huawei has always insisted on not making cars, but using its leading smart networked car technology to help car companies build and sell good cars, and will continue to work with car companies to create excellent smart car products for users and provide them with the ultimate intelligent travel experience.
"The transfer of this commodity and brand asset does not affect the existing cooperative business between the two parties, and further safeguards the long-term development of the AITO Ask Realm, and also reflects the original intention of both parties to focus on users and do a good job in joint business and AITO Ask Realm products," the announcement added.
According to an appraisal report issued by Zhongjing Minxin (Beijing) Asset Appraisal Co., Ltd. on July 1, the subject of the asset appraisal commissioned by Chongqing Sokon Industry Group Stock was part of the intangible assets held by Huawei Technology Co., Ltd. and its subordinates, with an appraisal range of 919 trademark rights and 44 design patents. Among them, 740 trademark rights have been authorized, and the remaining trademark rights are still in application, and have not obtained trademark registration certificates; The appearance patents are still in application and have not been granted patent certificates. After appraisal, under the above appraisal purpose, assuming that the assets are continuously used according to the existing use mode without changing the use and other hypothetical conditions, the market value of the part of the intangible assets held by Huawei Technology Co., Ltd. and its subordinates on the appraisal reference date of May 31, 2024 is CNY 102,330,456.
According to the appraisal report, products under application for appearance patents include the Ask Realm M8 with code F3, the Ask Realm M7 with code F1, etc. The latest data shows that the entire Ask Realm series delivered more than 40,000 units in June, a record high. Among them, the AITO Ask Realm M9 delivered 17,241 units in June, with a total of more than 100,000 units on order; AITO Ask Realm new M7 delivered 18,493 units in June, with sales exceeding 110,000 units in the first half of the year.
"By spending a huge sum of money to acquire the AITO Ask Realm trademark and other related intellectual property rights, Sokon may bear pressure on its performance in the short term. But in the long run, if the AITO Ask Realm series continues to sell well, it will be expected to increase Sokon's corporate reputation and enhance its valuation," said an industry insider. According to the announcement, the transaction price will be paid in full before December 30, 2024.
According to the financial report, in 2023, Chongqing Sokon Industry Group Stock achieved revenue of CNY 35.842 billion, a year-on-year increase of 5.09%, mainly due to the increase in sales of new energy vehicles with higher unit prices; Net loss was 2.45 billion yuan, a year-on-year decrease. In 2022, Chongqing Sokon Industry Group Stock had revenue of CNY 34.1 billion and a net loss of CNY 3.832 billion.
To further strengthen cooperation with Huawei, it is learned that Chongqing Sokon Industry Group Stock has signed an agreement with Huawei to further deepen joint business cooperation. According to the agreement, the two parties will give full play to the advantages of joint business and make AITO Ask Realm a world-class new luxury car leading brand. Prior to this, in February 2023, the two parties signed an agreement to deepen joint business. According to the agreement, the goal of Sokon's joint business is to achieve production and sales of one million new energy vehicles by 2026. At the same time, Sokon and Huawei will further promote the establishment of a joint innovation center.
In addition, on the same day as the above announcement, Chongqing Sokon Industry Group Stock also released information for the first time that it will strategically invest in and cooperate with Huawei's new company for car business, Yingen (the new company established by Huawei's Vehicle BU). Chongqing Sokon Industry Group Stock said that in order to further deepen its comprehensive cooperation with Huawei, Sokon is actively planning to participate in strategic investment and cooperation with Yingen.
On January 16 this year, Shenzhen Yingen Intelligent Technology Co., Ltd., fully owned by Huawei Technology Co., Ltd., was established with a registered capital of CNY 1 billion, with a business scope including the manufacture of intelligent on-board equipment, research and development of automobile parts, artificial intelligence industry application system integration services, etc. After inquiry by Huawei, the new company is the Huawei Vehicle BU new company previously announced to be established.
On November 26, 2023, Chongqing Changan Automobile announced that it has signed a memorandum of investment cooperation with Huawei. According to the memorandum, Huawei intends to integrate the core technology and resources of its smart automobile solution business into a new company, in which Chongqing Changan Automobile and its affiliates will intend to invest, up to 40% of the shareholding. Under Huawei's plan, in addition to Chongqing Changan Automobile, more partners will be introduced into the new company, including Chongqing Sokon Industry Group Stock. According to Changan Automobile's announcement on May 7, it is expected to sign the final transaction documents with Huawei no later than August 31, 2024.