Sailas Group Co., Ltd. (stock code: 601127) announced on the evening of July 28th that the company plans to invest in Shenzhen Yingwang Intelligent Technology Co., Ltd. (hereinafter referred to as "Yingwang"). Specific investment amount, transaction method, and transaction price will be subject to the final transaction documents signed by both parties.
Yingwang specializes in the research, design, production, sales, and service of automotive intelligent system and component solutions, focusing on areas such as automotive intelligent driving solutions, intelligent cockpits, smart vehicle control, intelligent vehicle cloud, and automotive lighting. As of now, Huawei Technologies Co., Ltd. holds 100% equity in Yingwang.
Sailas stated that based on the progress of preliminary work with Yingwang and its shareholders, the company has initiated negotiations with Yingwang and its shareholders to jointly support Yingwang in becoming a global leader in automotive intelligent driving systems and components, and to develop it into an open platform serving the automotive industry. Upon completion of the transaction, Yingwang will become a subsidiary in which Sailas holds a stake.
Yingwang's development was first disclosed at the end of last year when Huawei and Chang'an Automobile officially signed a Memorandum of Investment Cooperation. According to the agreement, both parties will jointly establish a new company to integrate Chang'an Automobile's resources and capabilities. Huawei will refrain from engaging in business that competes with the new company and will invite other automotive enterprises to invest.
In May this year, Chang'an Automobile announced progress in the Memorandum of Investment Cooperation signed with Huawei. The announcement first mentioned the target company as Yingwang, a new company established by Huawei earlier.
Yingwang was registered and established by Huawei in January this year and has since rapidly set up subsidiaries in Shanghai, Suzhou, Dongguan, Hangzhou, and Nanjing. It is widely recognized in the industry that Yingwang will become the primary operational entity of Huawei's Intelligent Vehicle Solutions Business Unit (BU).
Established in 2019, Huawei's Intelligent Vehicle Solutions BU focuses on extending the company's ICT advantages into the smart automotive industry, providing incremental components for intelligent connected vehicles and offering services to automotive enterprise clients and industry partners to promote electrification, connectivity, and intelligence upgrades in the automotive industry.
According to Huawei's strategic plan, Yingwang will integrate Huawei's Intelligent Vehicle Solutions BU technology and resources and attract more partners through a diversified equity structure to become an open technology platform. Industry experts believe that this diversified equity model will facilitate deeper cooperation and shared benefits among all parties in joint business endeavors.
"By participating in Yingwang's equity, automotive enterprises and Huawei can more closely collaborate on business initiatives and achieve shared benefits," said Zhang Xiang, Secretary-General of the International Association of Intelligent Transport Technology, in an interview with Securities Daily. "This model has proven to be a mature cooperation approach in the automotive industry, benefiting both sides."
Sailas Group's collaboration with Huawei has drawn significant market attention. Previously, Sailas announced plans to acquire Huawei's registered or pending 919 AITO trademarks and related design patents for a total of 2.5 billion yuan, further deepening cooperation in the field of smart cars. Sailas emphasized that this acquisition will not hinder the ongoing joint business operations between the two parties and will continue to enhance their collaborative relationship to ensure sustained business growth and innovative development.
In summary, Sailas Group's introduction of Yingwang as a subsidiary is expected to accelerate business expansion in the smart automotive sector. Together with Huawei, leveraging their respective technological and market strengths, they aim to drive the development and application of intelligent connected vehicles.
