①Chongqing Sokon Industry Group Stock announced that its subsidiary Sokon Autos plans to acquire 10% equity of Shenzhen Yinwang for 11.5 billion yuan, at a trading price of 11.5 billion yuan. ② On the same day, it was learned from informed sources that its subsidiary Avita, after becoming a shareholder of Huawei Yinwang, Chang'an group still has a 10% pre-emptive purchase right. Later, Chang'an will invest another 10% at a price of 11.5 billion, and it is not ruled out that Avita will still make the full purchase.
On August 25, Salyss Group announced that its wholly-owned subsidiary Salyss Autos plans to purchase 10.00% equity of Shenzhen Yingwang Technology Co., Ltd. held by Huawei Technologies Limited by paying cash, with a transaction price of 11.5 billion yuan, as Avita Holdings backing off marks the second 'big investor' welcomed by Huawei. Salyss Group's Chairman (founder) Zhang Xinghai stated that this investment in Yingwang Company marks the comprehensive cooperation between us and Huawei upgrading to 'business + equity', opening a new starting point for the sustainable development of both parties from 1 to N. 'Salyss will firmly support Yingwang to become an open platform for intelligent transformation in the automobile industry, striving to achieve the annual production and sales target of millions of units in three years, driving a million sets of Yingwang supplies, and achieving mutual benefit.'
On the same day, it was learned from insiders that after its subsidiary Avita became a shareholder of Huawei's Yingwang, Chang'an Group still has a 10% priority purchase right, and subsequently Chang'an will re-invest 10% at a price of 11.5 billion yuan, not ruling out the possibility of Avita buying all of it. If this operation is completed, Avita's stake in Yingwang will increase to 20%.
On August 19, Changan Automobile announced that its subsidiary Avita Technology would spend 11.5 billion yuan to purchase 10% of Huawei Yingwang's shares; the next day, the two sides officially signed the investment agreement, with Avita becoming the second largest shareholder of Yingwang, obtaining seats on the board of directors and the audit committee, and jointly supporting the future development of the company with Huawei. After the signing of this equity transfer agreement, it means that Huawei's BU will officially operate independently, and Yingwang will be officially put into operation.
'In the future, Yingwang will continue to open up its equity to strategic partners, and work together to promote the rise of the automobile industry and comprehensive intelligent development,' said Huawei's rotating chairman Xu Zhijun at the signing ceremony.
Data shows that Yingwang, formally known as 'Shenzhen Yingwang Intelligent Technology Co., Ltd.', was established on January 16, 2024. Initially fully owned by Huawei, it is a subsidiary dedicated to the development of intelligent automobile industry, providing solutions for intelligent systems and components in the automobile sector. Its main business scope includes research, design, production, sales, and services of smart driving solutions, smart cabins, intelligent vehicle control, smart car cloud, in-car light, and more.
Although announcements from Changan Automobile and Salyss Group mentioned that Yingwang has not yet completed the 'Huawei Vehicle BU asset' loading, it still attracted more investors to join. On August 23, regarding whether BAIC BluePark New Energy Technology will invest in Huawei Yingwang, Zhao Ji, the Secretary of the Board of Directors of BAIC BluePark New Energy Technology, stated, 'We are now one of Huawei's 'Four Boundaries' and have captured the mid-to-high-end market. Currently, BAIC New Energy has a production capacity of 0.3 million vehicles reserved in the Enjoy Boundary Super Factory, and the depth of future cooperation will be as deep as possible.' Zhao Ji said.
In addition to the already expressed interest from BAIC BluePark New Energy Technology, Dongfeng Automobile and China FAW Group, two central enterprises, may also become important shareholders of Yingwang. In March, Dongfeng Automobile Group's Deputy General Manager You Zheng revealed that they are actively advancing the matter of participating in Huawei's Vehicle BU. This year, Dongfeng Automobile's subsidiaries Landtu Automobile and Mengshi Technology successively signed strategic cooperation agreements with Huawei, but both sides did not disclose the specific cooperation model. Huawei's Executive Director, Terminal BG Chairman, and Intelligent Automobile Solutions BU Chairman Yu Chengdong publicly invited Huawei to open up equity to Salyss, Chery, JAC, and BAIC, hoping that China FAW Group will join.
"Huawei definitely hopes to bring in more car companies." From the industry's perspective, this not only helps Huawei solve its automotive business funding issues, but also helps expand its scope of cooperation and reduce concerns from car companies. However, the question of how to balance the technological enablement of multiple partners and unite the power of many shareholders into one force may be the primary issue to be addressed. "By having a sufficient proportion of equity for car brands interested in investment, it to some extent indicates that there is no shortage of investors."
According to the announcement by Changan Automobile on the evening of August 19th, the board of directors of Yingwang is composed of seven members, and the seats on the board of directors are determined based on the proportion of shareholder holdings. Among them, Huawei has the right to nominate six directors, and Avita Technology has the right to nominate one director.