On the afternoon of November 28, Huawei held a press conference for the Smart World S7 and Huawei’s full-scenario launch. It was introduced at the meeting that the pre-order volume of Zhijie S7 has exceeded 20,000 units. Yu Chengdong, Huawei's managing director and chairman of Smart Car Solutions BU, said that Huawei has sent out equity invitations to Cyrus, Chery, JAC, and BAIC, and hopes that China FAW Group will join.
Yu Chengdong said that China’s powerful car manufacturers, such as FAW, are welcome to participate in co-construction and jointly create the most leading and ultimate smart car solution products.
At the press conference, Yu Chengdong said that Huawei has three cooperation models in the automotive business, one is the parts model, the other is the Huawei HI model, the third is the smart car selection model, and the third is the deepest cooperation model.
"What you are seeing now are the products of Huawei's cooperation with Cyrus and Chery. In the future, the products of Huawei's cooperation with BAIC and JAC are already in the process of development and on the way. The cooperation products will become more and more high-end," Yu Chengdong said.
Image source: Zhijie S7 and Huawei full-scenario press conference
According to reports, on November 26, Huawei and Changan Automobile announced that they had signed an "Investment Cooperation Memorandum". After negotiation, Huawei plans to establish a new company to focus on the research and development, production, sales and services of intelligent driving systems and incremental components for intelligent connected vehicles. According to the memorandum, Huawei plans to integrate the core technologies and resources of its smart car solutions business into the new company.
At the market level, Huawei's new smart car solutions business company triggered a surge in automobile stocks in the capital market.
On November 28, Changan Automobile (000625), one of the first batch of joint venture companies, closed at 21.48 yuan, up 9.82%, with a total market value of 213.07 billion yuan. FAW Jiefang (000800), FAW Fuwei (600742) both hit the daily limit. Driven by this, BAIC Blue Valley (600733) soared 8.31%, followed by Jianghuai Automobile (600418), Thalys (601127) and others.
Previously, there were rumors that Changan Automobile will acquire about 30% of Huawei Auto BU (Huawei's end-to-end business responsibility body for the smart car field) with a valuation of 300 billion yuan. Changan Automobile further clarified this time that the company and its related parties plan to invest in acquiring the equity of Huawei's new company, with the proportion not exceeding 40%. The specific equity proportion, amount and period of investment will be discussed separately by both parties.
Image source: Daily Economic News Data Map
As soon as the news of the cooperation between Changan and Huawei came out, another Huawei partner, Thalys, issued a statement saying that it had received an invitation to jointly invest in the target company (i.e. Huawei's new company) and jointly participate in the creation of an electrified and intelligent open platform. The company is actively demonstrating related matters related to participation in investment and cooperation.
In addition, on November 27, Jianghuai Automobile stated in a statement that since the company launched strategic cooperation with Huawei in 2019, it has been in close communication and the scope has continued to expand. The Company is highly concerned about Huawei's plan to establish an independent company for automotive intelligent systems and component solutions, and is actively exploring investment and cooperation matters with Huawei.
According to The Paper, on November 27, Yu Chengdong, Huawei’s managing director and chairman of Smart Car Solutions BU, told reporters that Huawei will still lead the technology research and development direction of the new joint venture, and partners in Huawei’s smart car selection business will gradually join the joint venture in the future.
After the market closed on November 27, according to incomplete statistics, a total of 10 listed companies, including Jinlu Electronics, Sulian Co., Ltd., Jingu Co., Ltd., Shuanglin Co., Ltd., Chuanhuan Technology, China Grand Automobile Co., Ltd., Asia Pacific Co., Ltd., Desay SV, Sanlian Forging and Guangting Information, responded to the interactive platform in the past two trading days with details on supply or cooperation with Changan Automobile.
Among them, Jinlu Electronics said that the company's PCB is used in the field of domain controllers for intelligent driving, and can eventually be applied to Changan Automobile's Deep Blue, Avita and other models. Koting Information stated that it currently mainly provides intelligent cockpit software development and intelligent connected vehicle testing services for Changan Automobile.
Bojun Technology stated on the interactive platform on November 27 that the company is a body parts supplier of Changan Automobile, supplying body parts and other related products to Changan Automobile. So far, the company's cooperation with Changan Automobile is going well, and the supply volume is on the rise.
Tongxing Technology stated on the interactive platform on November 27 that the company and Changan have been cooperating for many years and will continue to deepen their cooperative relationship in the future.
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