CIMC Become a Shareholderof Zhuhai Yinlong with Capital Increase

On December 15, the author was informed at the Chinese Manufacturing Summit held in the Great Hall of the People in Beijing, the five enterprises and individuals subordinated to CIMC Group (hereinafter referred to as CIMC) have signed capital increase agreement with Zhuhai Yinlong New Energy Co., Ltd. (hereinafter referred to as Zhuhai Yinlong). At the same time, CIMC also signed a strategic cooperation framework agreement with Zhuhai Yinlong. The subordinate companies of CIMC became the shareholders of Yinlong with the capital increase of RMB 200 million, accounting for about 1.5%, and both parties have agreed to carry out business cooperation in many ways. Li Yinhui, the Vice President of CIMC Group introduced, CIMC accumulated superior resources in the fields of energy and logistics in the past more than 30 years, and have huge demand for new energy in the aspects of heavy trucks, refrigerator trucks and airport equipment. Due to the R&D and manufacturing capacity of Zhuhai Yinlong in lithium titanate batteries, new energy vehicles and energy storage, there is tremendous cooperation space for both parties in the future.

The Synchronized Cooperation in Stock Right and Businesses between CIMC and Zhuhai Yinlong

It is reported that the parties signing the capital increase agreement with the original shareholders of Zhuhai Yinglong also include Dong Mingzhu as an individual and three famous enterprises including Beijing Yanzhao Huijin International Investment Co., Ltd., Dalian Wanda Group Co., Ltd. and Jiangsu Jingdong Bangneng Investment Management Co., Ltd. With the joint capital increase of RMB 3 billion, the five units or individual acquired 22.388% of Zhuhai Yinlong’ stock right.

Based on the multi-aspect cooperation potential in the future, CIMC signed a strategic cooperation framework agreement with Zhuhai Yinlong at the same time. According to the contents of agreement, both parties decided to cooperate in the fields of new energy trucks (such as new energy wharf trailers, new energy logistics vehicles and etc.), new energy airport shuttle buses, new energy buses, passenger car design, charging piles in parking lot and etc.

CIMC Group was put into operation in 1982. With the development of 34 years, the company is the global leader in the logistics and energy industry services. Depending on the 19 types of products in the fields of container business, energy chemical and food equipment, airport equipment, road transport vehicles and modular buildings, it ranks top in multiple market segments. The development of 34 years helps the company accumulated abundant resources of customers, channels, production and brands. With the products selling to the whole world, the company established more than 30 subsidiaries or production bases. The 60% of revenue originated from overseas markets, and the global experience is advantageous in both industry and the national business circle.

In the trend of global economic transformation and upgrading, CIMC also has strong development demands for the new energy industry. Its heavy truck business, refrigerator truck business and airport shuttle buses have huge demands for the use of new energy. In the recent years, with the rapid development of global energy storage market, the domestic enterprises accelerate to join the global competition of new energy industry. The R&D and production capacity of Zhuhai Yinlong in new energy power is recognized by the country and market, especially lithium titanate batteries and new energy vehicles. The data shows that Zhuhai Yinlong has achieved the growth of several times in revenue and profit for two consecutive years and attracted a lot of capital investment.

Since August 2016, through the contact and negotiation of several times between CIMC and Zhuhai Yinlong, both parties decided to establish long-term and extensive cooperation relationship, advancing at the same time in both business and stock right.

CIMC Group Firmly Promotes the Use of New Energy in Multiple Industries

Both parties believes that the cooperation will further enhance the development scale of new energy industry, increase the market shares of both parties, expand the product lines, achieve mutual benefit and win-win of both parties, and realize more business values. The relevant principal of CIMC said that with the upgrading and development of various industries, they will firmly promote the use of new energy.

The lithium titanate battery technology owned by Zhuhai Yinlong has the global leading position in the field of electric new energy. With the advantages such as fast charging, long service life and low temperature resistance, it is especially applicable to the buses and wharf trailers used for fixed mileages or fixed lines. According to the strategic cooperation framework agreement signed between CIMC and Zhuhai Yinlong, the deep cooperation of both parties will be firstly shown in the field of new energy commercial vehicles, including new energy buses, trucks, special vehicles, wharf trailers and etc. For the above new energy vehicles, Zhuhai Yinlong will provide the corresponding products for CIMC in the aspects of battery, motor and electric control and etc., and CIMC will provide the manufacturing qualification, whole vehicle manufacturing capacities, market promotion and other supports for Zhuhai Yinlong. The focus of this cooperation is the heavy truck brand of CIMC – “Combined Truck”. In 2014, due to the favorable prospects of new energy truck market, the corresponding new energy truck market development plan has been formulated for the Combined Truck.

CIMC also has urgent demand in new energy for the special container and road vehicle businesses which need to use the energy storage equipment. In 2015, CIMC sold about 88,000 sea transportation cold boxes, accounting for two-thirds in the world, and sold 6,000 land transportation refrigerator truck, ranking top in the domestic market and accounting for about 20%. The latter is especially used in the cold chain distribution and goods distribution of urban logistics. Considering the shortage of domestic cold chain transportation, there is a promising prospect for electric energy application. Li Yinhui, the Vice President of CIMC Group said when confirming the signing of agreement, they will explore this abundant market together with Zhuhai Yinlong.

In addition, Zhuhai Yinlong also plans to enter the field of new energy use of airport shuttle buses. Currently, CIMC enjoys a global reputation in airport equipment such as boarding bridges and shuttle buses. In recent years, more than 40% of the new-added boarding bridge orders were acquired by CIMC, and more than 95% of the new-added boarding bridges in the Chinese market are branded with CIMC. These achievements laid a good market foundation for both parties in the new energy use of airport equipment field.

Finally, it is worth noting that CIMC also plans to introduce the products of Zhuhai Yinlong to the charging piles of airports and hospitals constructed by its subordinate company - “Shouzhong Investment Management Co., Ltd.” in Beijing and other cities. It is reported that this company is an investment company cooperated by CIMC and Shougang Group. According to the plan of CIMC, the steel structure mechanical space-parking system subordinated to the company will introduce charging p8iles in the future. Due to the huge demand gap for the space-parking systems in Beijing, Shanghai, Guangzhou, Shenzhen and other first-tier cities with scarce land resources, it has imaginary space in the future. In 1996, as the global leader, CIMC constructed the first mechanical space-parking system in China and has 30 years of industry experience in this field.