Cyrus said that it is currently Huawei's vehicle BU partner with the deepest cooperation, the widest scope, and the largest installed capacity. According to the relevant provisions of the long-term strategic cooperation agreement signed by the two parties, Auto BU’s strategic adjustment will not affect the long-term strategic partnership between the two parties, the parts supply relationship to Cyrus, or the service for AITO Qingjie car owners and potential Users continue to provide products and services.

On November 25, Chongqing Changan Automobile Co., Ltd. (hereinafter referred to as "Changan Automobile") announced that the company and Huawei Technologies Co., Ltd. (hereinafter referred to as "Huawei") signed an "Investment Cooperation Memorandum". After negotiation between the two parties, Huawei plans to Establish a company engaged in the research and development, design, production, sales and service of automotive intelligent systems and component solutions (hereinafter referred to as the "Target Company"). Changan Automobile plans to invest in the target company and carry out strategic cooperation. Both parties will jointly support the target company to become a China-based company. , an industry leader in automotive intelligent systems and component solutions facing the world and serving the industry.

Main contents of the memo

Cooperation Method

According to the announcement, Huawei, as Party A, has established a target company. Its business scope includes automotive intelligent driving solutions, automotive intelligent cockpits, intelligent automotive digital platforms, intelligent car clouds, AR-HUD and intelligent car lights, etc., and will use dedicated Relevant technologies, assets and personnel within the target company's business scope are injected into the target company. The specific business scope and loading plan will be determined in the final transaction documents. Changan Automobile, as Party B of the transaction and its related parties, plans to invest in acquiring the equity of the target company, with the proportion not exceeding 40%. The specific equity proportion, contribution amount and term will be discussed separately by both parties.

Principle of Cooperation

The target company will operate independently based on market-oriented principles and adopt a market-oriented management system and remuneration incentive framework. Both parties commit to long-term cooperation and strategic coordination with the target company. In principle, components and solutions within the business scope will be provided by the target company to vehicle customers. In principle, Huawei will not engage in business that competes with the business scope of the target company, and Changan Automobile will comprehensively promote strategic coordination with the target company.

In addition, according to the announcement, the two parties plan to sign the final transaction documents within 6 months after the signing date of this memorandum, including the equity purchase agreement, shareholders agreement, articles of association of the target company and other documents related to this transaction defined under the final transaction documents.

Cyrus posted a response

The next day, November 26, Cyrus Group (hereinafter referred to as Cyrus) issued a document on its official Weibo account stating, "Huawei is welcome to establish an independent company with open equity for automotive intelligent systems and component solutions."

Cyrus said that it is currently Huawei's vehicle BU partner with the deepest cooperation, the widest scope, and the largest installed capacity. According to the relevant provisions of the long-term strategic cooperation agreement signed by the two parties, Auto BU’s strategic adjustment will not affect the long-term strategic partnership between the two parties, the parts supply relationship to Cyrus, or the service for AITO Qingjie car owners and potential Users continue to provide products and services.

In the past three years, Cyrus and Huawei Auto BU have cooperated in depth on products and solutions such as smart driving and smart cockpits, and the jointly created AITO model has been widely loved by users and recognized by the market.

Cumulative sales of Cyrus'new M7 exceeded 100,000 units

Today, AITO Automobile's official Weibo post pointed out that two and a half months after its launch, the cumulative number of Wenjie's new M7 units exceeded 100,000! With monthly sales of over 30,000 yuan, it once again set a new pace in the industry.

On November 1, AITO Automobile announced that in October 2023, AITO Wenjie series delivered 12,700 new cars, including 10,547 new Wenjie M7 new cars. The monthly delivery of a single model exceeded 10,000, a record high, and the Wenjie series totaled 10,000 new cars. Monthly sales reached 57,829 units.

On September 12, AITO Wenjie’s new M7 series, which invested 500 million in heavy upgrades, was officially launched, priced at 249,800-329,800, which is an overall decrease of more than 40,000 compared with the price of the old model.

In addition, according to the financial report released by Thalys (601127.SH), in the first three quarters of this year, the company achieved operating income of 16.68 billion yuan, a year-on-year decrease of 27.86%; a net loss of 2.294 billion yuan; and a net loss after non-deductions of 3.015 billion yuan. Yuan.

According to data, Cyrus Automobile was founded in 1986. It is a technology-based manufacturing company with new energy vehicles as its core business. Its business involves new energy vehicles and the core three electricity (battery, electric drive, electronic control), traditional vehicles and R&D, manufacturing, sales and service of core component assemblies.

The company was the first to experiment with a mixed economy. In 2003, it entered into a joint venture with Dongfeng Corporation to produce automobiles, becoming a model for the mixed economy in China's automobile industry. In 2020, the two parties deepened their strategic cooperation, and the cooperation was elevated from a subsidiary to a joint-stock company level. After the reorganization, Dongfeng Company became an important major shareholder.

In 2021, the company and Huawei, a global leader in ICT, pioneered in-depth cross-border integration of joint businesses. The two parties jointly created the AITO Wenjie series of new energy vehicle products.

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