Lucent Precision intends to build a joint venture with Chery to join forces to build cars
Lucent Precision intends to build a joint venture with Chery to join forces to build cars, Lucent Precision announced that Lucent Precision intends to Chery new energy to set up a joint venture company specializing in new energy vehicles, vehicle research and development and manufacturing. Lucent Precision intends to build a joint venture with Chery to join forces to build cars.
The company intends to build a joint venture with Chery to build cars.1
On February 11, technology giant Lucent Precision announced that the company signed a "strategic cooperation framework agreement" with Chery Group.
The following delineate the key points: Lixun limited to 10.054 billion yuan to buy Qingdao Wudaokou held 19.88% of the equity of Chery Holdings, 7.87% of the equity of Chery shares and 6.24% of the equity of Chery New Energy, but does not constitute a control of Chery Holdings, Chery shares and Chery New Energy. At the same time, it is proposed to form a joint venture with Chery New Energy***, specializing in the development and manufacture of complete vehicles for new energy vehicles.
Lixun and Chery strong combination
Many people may not be very familiar with Lixun Precision. As one of the well-known technology companies in China, Lixun Precision specializes in the research, development, production and sales of connecting wires, connectors, motors, wireless charging, FPC, antennas, acoustic and electronic modules. The products are used in 3C (computer, communication, consumer electronics), enterprise-level equipment, automotive, medical and other fields.
And as one of the head camp car companies of Chinese brands, Chery Group's global users have accumulated more than 10 million. According to the monthly ranking of China Association of Automobile Manufacturers (CAAM) in 2021, "Chery Speed" has ranked first in the industry's sales growth rate for many months, and has realized a high-quality development pattern in which the domestic and overseas markets promote each other.
This time, the LiXun Precision of Chery Holdings, Chery shares, Chery New Energy, and Chery New Energy to form a joint venture, the two sides of the strong combination of the two sides, is conducive to the two sides in the automotive core parts design and development, mass production platforms as well as the sea, and so on, to give full play to their respective advantages, and ultimately achieve a win-win situation.
Lixin Precision empowers Chery to develop more steadily
The data show that Chery Group's annual sales volume in 2021 exceeded 960,000 units, an increase of 31.7% year-on-year. Among them, overseas sales amounted to 269,000 units, and new energy sales amounted to 109,000 units. At the same time, Chery Group has set a small target for 2022: 1.5 million units. This also means that this year's sales will have to grow 56.26% year-on-year, and the difficulty is still there.
From the sales data in January this year, Chery Group terminal sales of 107,710 units in January, an increase of 20% year-on-year, a record high for the same period in history, and welcome to the New Year "open door red". Previously, the circle is also expected, this year, Chery Automobile, Jetway automobile will usher in a variety of new models as well as modified models, can be very good to protect the sales of Chery Group base plate.
At the same time, technology Chery also stepped on the market rhythm, launched its own plug-in hybrid technology, which is for the brand as well as sales promotion, but also has a great help. In addition, overseas exports as well as new energy will become an effective increment of Chery this year. After all, the official has made it clear that this year, QQ ice cream + small ants to impact 300,000 units +, which is not a joke.
This time, under the empowerment of Lucent Precision, the development of Chery Group will undoubtedly be more stable, and the impact of 1.5 million units of the annual mini-target is also a little easier. The reason is very simple, on the one hand, the accession of Lucent Precision, to a certain extent, will strengthen the Chery Group's ability to control part of the supply chain, which is currently missing in many car companies. On the other hand, the two sides to focus on the new energy market, invariably will also strengthen the Chery Group in the new energy market, the right to speak, in the incremental market to capture a greater share.
that, in recent years, the development of Chery Group we have seen ****, especially in 2021, although the new crown epidemic, "chip drought" and other issues, once the automotive market under pressure to move forward, but Chery firmly to the "technology Chery" tamping The bottom line, accelerate the transformation in the user thinking, Internet thinking, etc., the sales achieved a growth trend far beyond the broader market. It can be predicted that this time, the LiXun Precision seize the opportunity, and Chery Group strong combination, is bound to play "1 +1 > 2" effect.
Precision to build a joint venture with Chery to join forces to build a car 2On the evening of February 11, the LiXun Precision announcement that the company and Chery Holdings Group Limited and its affiliated subsidiaries signed a strategic cooperation framework agreement. In the future, Lucent Precision intends to form a joint venture with Chery New Energy, specializing in the development and manufacture of complete vehicles for new energy vehicles.
The announcement shows that this cooperation is to provide cutting-edge R & D design, mass production platform and access to the sea for the core auto parts business of Lucent Precision, and is committed to realizing the company's medium- and long-term goal of becoming a leading manufacturer of auto parts Tier 1.
Tier 1 refers to the first-tier suppliers of car manufacturers, supplying directly to vehicle manufacturers, and Tier 1 manufacturers' foundries are Tier 2, and so on.
Specifically on the cooperation mode, Lucent Precision announcement shows that the cooperation subsidiary to take Lucent Precision to pay 500 million yuan to hold the registered capital of '30%, Chery New Energy to contribute 1.167 billion yuan and hold 70% of the registered capital of the shareholding structure, the price of 1 yuan per 1 yuan of the registered capital of the subscription price of 1 yuan. The two sides will endeavor to set up cooperation within 3 months after the signing of the agreement.
For this cooperation, Lixun Precision said, Chery Holdings and its affiliated subsidiaries in the automotive industry for many years of deep cultivation, in the field of vehicle has a complete technology and product development system, especially in the vehicle manufacturing link has an independent independent platform, able to provide Chery Automobile and other brands from the development of the vehicle to the mass production of the integrated services in the industry has a leading core competitive advantage. The cooperation can help realize the diversification and scale development of the company's core components.
Leadsun Precision started from the connector products, is one of the important parts of the smartphone, the late continuous expansion of production capacity and product line, 10 years ago through the acquisition of Apple supply chain successfully entered the current for Apple to assemble AirPods, iPhone and other star products, which means that the level of its foundry is at the cutting edge of the industry.
With the smartphone market plunged into the red sea, Luxun Precision in the original consumer electronics, communications products, in addition to the expansion of the automotive electronics business, its strong electronic manufacturing capacity is also a new energy vehicle intelligent process is very much in need of the ability. Luxon Precision mainly produces automotive wiring harnesses, electrical appliances, connectors and structural components and other products and solutions. The cooperation can also be seen from the horizontal expansion, to the deep expansion of the transformation.
According to the 2021 interim report of Lucent Precision, consumer electronics products are still the company's main source of revenue, accounting for nearly 84% of the total revenue, and automotive-related products accounted for about 4% of the total revenue of 1.77 billion yuan.
Although the revenue accounted for a relatively small, but its automotive business is growing fast. 2020 Lixun Precision automotive-related products revenue growth of 20.44%, the management has also repeatedly said in the research, the company's experience in consumer electronics and communications business makes it in the automotive electronics application scenarios have a certain advantage, "I believe that automotive electronics will be the future of the Lixun I believe that automotive electronics will be one of the main battlefield in the future."
The company intends to build a joint venture with Chery to join forces to build cars3
On the evening of February 11, the LiXun Precision announcement that the company and Chery Group signed a "strategic cooperation framework agreement" with Chery New Energy to *** with the formation of a joint venture company specializing in new energy vehicles, vehicle research and development and manufacturing.
It is worth noting that since the Year of the Tiger, the A-share Apple concept stock overall performance is poor, LiXun Precision also retreated significantly, the latest total market value of 290.3 billion yuan. Oriental Wealth Choice data show that since the Year of the Tiger, LiXun Precision cumulative decline of 12%.
Hand in hand with Chery New Energy
On the evening of February 11, Lucent Precision announced that the company on February 11 with Chery Holdings Group Limited ("Chery Holdings"), Chery Automobile Co. ("Chery"), Chery New Energy Vehicle Co., Ltd ("Chery New Energy") (the three and their affiliates collectively referred to as "Chery Group") signed a "Strategic Cooperation Framework Agreement" in Wuhu *** with the company. (the "Chery Group") signed a Strategic Cooperation Framework Agreement in Wuhu, China.
Lucent Precision said that on the basis of the agreement, the company and Chery New Energy to *** with the formation of a joint venture company specializing in new energy vehicles, vehicle R & D and manufacturing, for Lucent Precision automotive core components business to provide cutting-edge R & D and design, mass production platforms and access to the sea, and is committed to realizing the company to become a leading automotive components Tier 1 manufacturers in the medium-to-long term goal.
According to the agreement, the two parties will do their best to facilitate the establishment of the cooperative subsidiary within 3 months after the signing of this agreement. The cooperative subsidiary is proposed to adopt the equity structure that Licensing Precision (Party A) contributes RMB 500 million to hold 30% of the registered capital, Chery New Energy contributes RMB 1.167 billion and holds 70% of the registered capital, and the price of contribution for every RMB 1 of the registered capital is RMB 1 yuan. After the establishment of the cooperative subsidiary, under the premise of meeting the legal compliance, to carry out cooperative business and achieve results as soon as possible.
Leadsun Precision said, the signing of this is a strategic cooperation agreement, does not constitute a "listed companies major asset reorganization management approach" provisions of the major asset reorganization, does not constitute a connected transaction, and does not need to be submitted to the company's board of directors and the general meeting of shareholders to consider.
Lucent Precision also announced that on the day of the signing of the agreement, the company's controlling shareholder, Lucent Limited (referred to as "Lucent Limited") and Qingdao Wudaokou New Energy Vehicle Industry Fund Enterprises (Limited Partnership) (referred to as "Qingdao Wudaokou") signed the "Framework Agreement on Equity Transfer", which stipulates that Lucent Precision is the only company in the world that has signed the agreement. Equity Transfer Framework Agreement" with Qingdao Wudaokou New Energy Vehicle Industry Fund Enterprise (Limited Partnership) ("Qingdao Wudaokou"), which provides for the purchase of 19.88% equity interest in Chery Holdings, 7.87% equity interest in Chery Shares and 6.24% equity interest in Chery New Energy held by Luxun Limited at a consideration of RMB10.054 billion. Upon completion of the transaction, Luxon Limited will not constitute control over Chery Holdings, Chery Shares and Chery New Energy. Before the signing of the Equity Transfer Framework Agreement, Qingdao Wudaokou held 46.77% of the equity of Chery Holdings, and was the largest shareholder of Chery Holdings.
For the LiXun Precision and Chery join hands, see more bearish views. Some shareholders have issued a question: the Li Xun this is for the OEM Apple car to prepare?
Accelerate the layout of the automotive business
It is worth noting that before signing the agreement, Lucent Precision set up an auto parts company in Wuhu, Anhui Province, which is the headquarters of Chery.
The national enterprise credit information publicity system shows that on January 28, 2022, Lucent Precision Industry (Wuhu) Limited was established with a registered capital of 20 million yuan. The business scope includes auto parts and accessories manufacturing; auto parts and accessories wholesale; electronic product sales; transportation equipment and production counting instrument manufacturing; instrument manufacturing; electronic components retail; new energy vehicle electric accessories sales; mold manufacturing; mold sales; and so on.
In August 2021, Lucent Precision said in the institutional research, automotive wiring harness business, the company is in the industry's leading position, customers include both domestic car-making new forces, including North American new energy brand customers, the part of the product is also the company's automotive business in the next five years an important product line. In the automotive interior part, the company also has a more specialized product modules, such as wireless charging module, the company has been among the forefront of the industry in this business area. In addition, in the field of automotive cameras, the company and the body of the company's full synergy, but also help the company to realize the extension of different markets and customers.
Although the automotive business has been growing rapidly, it still accounts for a relatively low percentage of Lucent Precision's revenue.
In the first half of 2021, Lucent Precision's revenue from automotive connected products and precision components amounted to 1.774 billion yuan, a year-on-year increase of 38.99%, with a revenue share of 3.68%.
Since 2022, Lucent Precision has accelerated its investment in the automotive sector. on January 3, Lucent Precision (Macheng) Automotive Electronics Industrial Park project was successfully signed. This is the first project of Lucent Precision in the central region.