On December 31, GLONGHUI announced that BRILLIANCE CHI (01114.HK) signed a joint venture agreement with Shenyang Jinbei Automotive Industry Holdings Limited ("Jinbei Auto Holdings") and TCL Hengshi Tianrui Investment (Ningbo) Co., Ltd. ("TCL Ningbo") to establish a joint venture for developing and manufacturing smart cockpit and display component business in China. This joint venture will primarily focus on developing AI software, providing Cloud Computing equipment technical services, information system integration services, technical consulting services, Software Outsourcing services, as well as selling Intelligent Manufacturing solutions, automotive hardware and software, and electronic components.
According to the joint venture agreement, the joint venture will be owned 50% by Jinbei Auto Holdings and 50% by TCL Ningbo after establishment. The total capital contribution for the joint venture will be 1.4 billion yuan, of which 0.7 billion yuan will be contributed by Jinbei Auto Holdings in Cash / Money Market, while 0.7 billion yuan will be contributed by TCL Ningbo partly in Cash / Money Market and partly through injected Assets. The capital contribution amount has been determined through fair negotiations among the parties, taking into account the estimated initial operating capital needed for capital expenditures and operations of the joint venture. The group plans to fund its contribution to the joint venture using internal resources.
In line with the company's strategy to expand into smart automobile solutions, the company is currently seeking to develop smart driving and cockpit integration services and integrate them into its automobiles to enhance functionality and create a better experience for drivers. The company has identified TCL Industrial Holdings Limited ("TCL") as a leading developer and manufacturer of Consumer Electronics, making it a very suitable partner to jointly develop smart electronic components and systems for integration into the group's automobiles and sales to third parties. The company anticipates that this joint venture will further promote the group's development and ultimately bring stable and sustainable growth in the long term.
